Market segmentation and market fragmentation work together to enable you to separate your target market from a larger market and then to determine characteristics to help you market better. I consider them two steps in the same process.

Step 1: Market Fragmentation

Market fragmentation separates the market into parts so that you can then segment your target market to reveal characteristics that effectively appeal to its members.

In other words, it enables you determine the market segments specific to your target market and fragment those segments from the larger market.

For example, if you know the age range of your target market, you can fragment that age range from all possible ages in the total market. For example, you can separate the age range of people most likely to buy your product from all ages.

Suppose you have determined that people in the 21-to-30 age range are most likely to buy your product. Knowing this age range enables you to fragment Generation Y and the Provisional Adulthood life stage from other generations and life stages.

Step 2: Market Segmentation

Knowing your target market’s generation and life stage, reveals psychographics that make your target market different from all other age ranges in the USA today.

For example, market segmentation by generations reveals that Generation Y members are brand conscious and prefer brands with a core identity based on core values. They don’t like a hard sell, but prefer word of mouth marketing. Advertising that works for them centers around their lifestyle and having fun.

Market segmentation by life stages reveals that the Provisional Adulthood life stage is a time when handling peer relationships and social life are important tasks. This is a time when peers have the greatest influence on what people buy and do.

Once you determine generation and life stage characteristics, you can then combine those characteristics with characteristics from other demographic segments like education, occupation, gender and race.

By using several market segments, you can determine characteristics shared across segments and see those most shared and important to your target market.

By using these two steps - market segmentation and market fragmentation - you can cater your marketing to appeals that will be most effective with your target market.

You can learn how market segmentation differs from stereotyping, click the link in this sentence.

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Posted 2-29-08: Market Segmentation:

Market Fragmentation

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