Segmentation helps us to find our segments by providing depth in quantitative & qualitative understanding of the market.
A major step in the segmentation process is the selection of a suitable base. In this step, marketers are looking for a means of achieving internal homogeneity (similarity within the segments), and external heterogeneity (differences between segments).
Basically meaning, we are searching for a process that minimises differences between members (people or business) of a segment and maximises differences between each segment (so we have clear groups/segments to cater to).
In addition, the segmentation approach must yield segments that are meaningful for the specific marketing problem or situation.
This video is an introduction to the various aspects, however for a better understanding please check out the links from the "Additional Reading" section below and continue on your learning journey.
Note: Videos have been made with international students in mind, as such if your finding the speed of speech slow, please increase playback speed to 1.25 in YouTube.
I hope the video takes you beyond the definition & helps to make the learning process a little more tangible. Please subscribe & feel free to share.
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Video Content
0:00 - Introduction to the Four Bases of Market Segmentation
0:20 - What is the definition of Segmentation base?
0:32 - Geographic Segmentation + Example
1:11 - What is Geographic Segmentation?
2:41 - Demographic Segmentation + B2C & B2B Examples
3:41 - What is Demographic Segmentation?
5:00 - Psychographic Segmentation + B2C & B2B Examples
5:50 - What is Psychographic Segmentation?
7:10 - Behavioural Segmentation + B2C & B2B Examples
7:55 - What is Behavioural Segmentation?
9:10 - How is the Global market Segmented?
9:38 - What are the other Methods of Market Segmentation?
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Came across a great saying:
Customers buy for their reasons, not yours. - Orvel Ray Wilson
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Additional Reading:
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School of Learning
Arnav Dutta
https://www.linkedin.com/in/arnav-dutta-a2020a44