What we know about segmentation

Current reading and thinking on the topic of segmentation; a crucial element of marketing, segmentation identifies relevant consumer subgroups, focusing and directing communication strategy.

Segmentation allows brands to identify and target potentially lucrative consumer subgroups. This can influence marketing strategy, NPD and corporate positioning. In recent years, segmentation has evolved and brands can now analyse a large range of datasets to identify and target groups of consumers. Proponents of segmentation contend that this approach improves customer retention, acquisition and market performance. However, conversely, some industry commentators believe that a focus on targeting highly segmented audiences means that light buyers within mass audiences are overlooked.


Segmentation divides existing and potential customers into subgroups, helping marketers to target bespoke audiences based on specific characteristics and...

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