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Segmenting consumers

Segmentation divides existing and potential customers into groups of similar individuals, helping marketers target audiences based on specific characteristics and needs. There are different types of segmentation, but the most common include demographic, socio-economic, geodemographic, behavioural, psychographic, lifestage and lifestyle. Segmentation aims to identify potentially lucrative consumer subgroups – those likely to be most profitable or with growth potential. Insights from segmentation are used to support marketing strategy development, NPD and product or service positioning.

Key Reading

Important papers from across the Warc database

This best practice paper provides an overview of segmentation. It discusses using it to identify groups of potential customers who are clustered around common traits, understanding how they may best be reached and how they will respond to different messages and appeals.
Byron Sharp argues that brands with quite different features end up selling to the same people as rivals.
A guide to segmenting consumers and embedding segments across a business.
Why people's lifestyles and mindsets are more important than gender, age and income as predictors.

Case Study

This case study explains how The Sun, the British newspaper, successfully introduced charges for a previously free fantasy football platform by using influencers and social media ads.

Case Study

This case study explains how Volkswagen increased sales of its Amarok truck model in Australia by challenging perceptions of the truck in an initially unbranded campaign targeting tradespeople.

Case Study

This case study shows how The Heart Foundation, a heart disease research foundation, raised awareness about the symptoms of heart attacks in New Zealand, by gamifying the experience on social media.

Case Study

This case study explores how Target Australia, Australia's largest department store chain, launched a national campaign to try and increase sales, using data tracking.

Case Study

This case study explores how Chipsy (AKA Lays), the world's biggest potato chip brand, launched a campaign in Egypt by partnering with the UEFA Champions League: the world's biggest football league.

Case Study

This case study shows how Burger King, a fast food chain, successfully increased sales by driving consumers' expectations for a McDonald's and Burger King mash-up burger in the US.
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Research Paper

This paper looks at offering a universally applicable segmentation method by encouraging brands to follow a series of best practice steps.

Article

This article explores the concept of age, specifically in terms of 16-19 year olds and those over 65, in relation to branding, personal attitudes and perceptions, and responses to music.

Article

In this article, the author adds her own contributions on how to use data to gain human insight into customer needs.

Article

This article looks at what programmatic can do to move away from the relentless targeting that ultimately only alienates consumers, and become better targeted and tailored messaging welcomed by its audience.

Article

This article examines how a new kind of analysis can take segmentation one step further by relating two or more sets of variables, providing a far more refined analysis.

Article

This article explores the current reading and thinking on the topic of segmentation; a crucial element of marketing, segmentation identifies relevant consumer subgroups, focusing and directing communication strategy.
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  1. Article

    This article considers the hype attached to the belief that Millennials are unlike any other generation, and finds that the majority of the cohort are much like older compatriots - unless they are affluent.

  2. Article

    This article shows that marketers are ill served by traditional demographics when dealing with millennials and could get better results if they adopted attitudinal segmentation.

  3. Article

    This paper provides an overview of segmentation and the way in which it is used to identify groups of potential customers who are clustered around common, identifiable traits, and to understand how they may best be reached and how they will respond to different messages and appeals.

  4. Article

    This best practice guide looks at how brands can build long-term loyalty in a marketing environment that has often relied on short-term rewards.

  5. Article

    This article argues that brands need to innovate in their product offering and marketing to match the growing trend for consumers to trial and review beauty products via digital devices and social media.
  6. Article

    This paper sets out research undertaken by Viacom International Media Networks (VIMN) in Northern Europe to better understand the lives and needs of millennials, how these build into trends and how VIMN can best serve this group.

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