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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.

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