Many market segmentation experts define market segmentation as the process by which you separate a target market from the mass market. Thus, when they refer to a segment, they refer to what I call a target market.

Market Segmentation – My Definition

I use slightly different terminology. Instead of referring to a specific market within the mass market as a segment, I refer to that market as a target market. Likewise, instead of using “segment” to refer to a target market, I use it to refer to a demographic variable, from which psychographic and behavioral characteristics can be determined.

Criteria For a Target Market

As a result, I consider several demographic variables as criteria necessary to determine a target market. These include age, occupation, education level, gender and race or national origin.

You may notice my different use of terms when reading the report on my matrix market segmentation process.

Simplifying Market Segmentation

This process simplifies market segmentation. It starts with demographics because most business owners know at least some demographic characteristics of their target markets. It then uses a systematic process to determine psychographic and behavioral characteristics based on the demographics.

By considering all the characteristics across different demographic segments, you can determine four to five shared characteristics that will effectively communicate with and relate to target market members.

In addition to defining segments and necessary criteria differently, my matrix market segmentation process also differs from many other market segmentation processes because of what it doesn’t require. It enables you to gather significant information about a target market without the technical skills, computer software or statistics required by most market segmentation processes.

You can get more information on market segments at the following link: Criteria Necessary For A Market Segment: Measurable and Identifiable

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Posted 5-22-08: Market Segmentation:
Defining Market Segments

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This entry was posted on Thursday, May 22nd, 2008 at 7:07 am and is filed under Market Segments.You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.