Segmentation studies determine similarities and differences among target groups and identify what motivates them to buy your brand. These segments are comprised of purchasers who are as similar as possible to each other, but also a different as possible from those in the other segments. Target segments are then selected and profiled to help you understand how to and market your product.
A quantitative methodology, such as telephone interviews is used in segmentation studies. Analytical tools, such as cluster analysis are used to divide the sample into segments, and discriminate analysis is used to determine the characteristics that motivate each segment.
- What are the market segments?
- What are the sizes of each segment
- What are the characteristics of consumers in each segment?
- Which segments are aligned with our capabilities/with what we have to offer?
- Which are most profitable?
- Who should be target?