Using graphical statistics to better understand market segmentation solutions

Market segmentation lies ‘at the heart of successful marketing’ (McDonald 2010), yet market segmentation solutions are not trivial to interpret, especially if consumers are segmented using post hoc or a posteriori or data-driven segmentation, where several consumer characteristics are analysed simultaneously to identify or construct market segments.

Using graphical statistics to better understand market segmentation solutions

Sara Dolnicar

University of Queensland

Friedrich Leisch

University of Natural Resources and Life Sciences

Introduction

Market segmentation means ‘grouping potential customers into sets that are homogeneous in response to some elements of the marketing mix’ (Choffrey & Lilien 1980). Smith introduced the concept in 1956, and Haley (1968) later extended segmentation bases to include psychographic elements such as purchase motives and benefits sought. Market segmentation is an extremely popular and commonly used tool in strategic marketing. Not only do organisations focus their marketing activities on target segments that have emerged from...

Not a subscriber?

Schedule your live demo with our team today

WARC helps you to plan, create and deliver more effective marketing

  • Prove your case and back-up your idea

  • Get expert guidance on strategic challenges

  • Tackle current and emerging marketing themes

We’re long-term subscribers to WARC and it’s a tool we use extensively. We use it to source case studies and best practice for the purposes of internal training, as well as for putting persuasive cases to clients. In compiling a recent case for long-term, sustained investment in brand, we were able to support key marketing principles with numerous case studies sourced from WARC. It helped bring what could have been a relatively dry deck to life with recognisable brand successes from across a broad number of categories. It’s incredibly efficient to have such a wealth of insight in one place.

Insights Team
Bray Leino

You’re in good company

We work with 80% of Forbes' most valuable brands* and 80% of the world's top top-of-the-class agencies.

* Top 10 brands