Another important factor in a successful anticipation of the market is the creation of the right segments for your product or service. A segment is a part of the market which represents people with similar wishes and characteristics. By researching which segments are best suited to your product, service or concept, focussed marketing activities can be undertaken. In addition, a segmentation analysis forms the basis for the design of a concept aimed at a promising segment
No two consumers are alike. So they will have different reactions to your concept or communication. Unfortunately, it is impossible in practice to design a different product or formulate a different message for each consumer.
Segmentation is the solution. It allows differing customers groups to be approached in an effective way. It also gives you insight into which segment is best suited to your product or service, and which segments you can ignore.
Performing segmentation analysis
Segmentation, in practice, means dividing up the market according to pre-selected characteristics. This division makes groups of comparable potential customers. An attraction park might, for example, segment its customers according to interests, readiness to travel, visiting patterns and composition of group. Segmentation generally uses the following characteristics:
- Geographical characteristics (region, city, district)
- Demographic characteristics (age, gender. household composition)
- Socio-economic characteristics (income, profession, education)
- Psychographic characteristics (personal characteristics, lifestyle, readiness to travel)
- Behavioural characteristics (loyalty, frequency of use, readiness to buy)
Segmentation is an innovation instrument for concepts which are difficult to grasp, such as values, emotions, identity and stories. We use creative processes and expand boundaries, taking as our goal the realisation of significant, or even transforming, experiences.
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