How to Create a Market Segmentation Strategy

Market segmentation is a crucial component of any successful marketing strategy. Why? Well, just think about your own target market.

Hopefully, everyone in your target market has an interest in your products or services. But are all of your potential customers the same age, sex, or located in the same region? Do they have the same income and education levels? Do they all have the same pain points, needs, or desires?

If your market is like most, your target audience includes a large variety of potential customers. Because of this, a strategy that doesn’t take into consideration the diversity of characteristics within the target market runs the risk of missing the mark more often than not.

As expert marketer Seth Godin said, “Your customer isn’t ‘Everyone’.” You need to get specific about who you’re communicating with when it comes to your marketing. This is where a market segmentation strategy comes into play.

What is a market segment?

A market segment is a group of individuals within a larger target market who share a particular set of characteristics. Most target markets will have a number of different market segments, or groups that share similar traits.

For example, if we were to look at the athletic footwear market, we’d discover a variety of different segments:

• One segment might be made up of true athletes who are training hard in the gym every day
• Another segment may be looking for a comfortable pair of shoes to wear when walking their dog
• Some customers may be...