How to make a market segmentation

Segmenting the market according to the variables that the company deems appropriate, is an essential step to be able to know our clientele and, consequently, develop a successful marketing strategy. However, segmenting the market correctly is not so simple, and there are some basic guidelines that we have to follow if we want to do it correctly. In this article we will show you these guidelines for market segmentation.

Steps to follow:

1.The first step would be to segment the potential market under general objective criteria, since this criterion allows us to know the demographic and socioeconomic characteristics of our clients or potential clients, and it is very easy to do. We can do it by sex, age, income, place of residence, etc. They are easy data to obtain and to classify.

2.Once we have distributed the above data, we will have to choose what our target market is, that is, those to whom we want to offer our product and who can buy it. For example, if we want to sell a high-level feminine cosmetic product, our target market will be in those segments of middle-aged women, with a medium-high income.

3.Subsequently, we will have to know the consumption profile of our target market, that is, how that sector usually relates to the market, as well as the behavior patterns when it comes to buying a product like ours. Research should be done around variables such as:

• Lifestyle
• Tastes and preferences
• Opinions
• Habits of consumption (in what circumstances consume more or less)

The investigation must be carried out, as is logical, within the segment selected in the previous section.

4.Once the consumption profile of our potential customers is known and researched, we will have to design a marketing strategy that fits the needs of the company and our market, to efficiently connect production with consumption.

For this, we must take into account mainly the marketing mix, that is, the correct disposition of the price, production, and promotion and distribution variables.

5.Finally, if all our decisions have been right, our product can be sold in the market segment that we have chosen in an ideal way. It is time to look for new markets in which to expand our sales.