Four Ways For Sales and Marketing Professionals to Segment Their Target Market

Philip Kotler reminds us that if markets are to be segmented and cultivated, they must meet certain requirements. Segments must be:

1. Measurable
2. Substantial
3. Accessible
4. Differentiable
5. Actionable

Assuming your target markets meet those requirements, sales and marketing professionals can cultivate these segments to maximize their potential. There are four ways to segment any given market and the choices you make regarding how to segment will impact the quality of your efforts.

Demographics

The first way to segment a market is by demographics. This is the easiest, most measurable, and most widely used way to segmentation method. The market is divided into groups based on any number of factors including age, race, family size, sex, income level, net worth, social class, nationality, and more.

Geography

Segmenting a market geographically requires a company to focus solely on a specific neighborhood, city, state, region, or country.

Behavior

Some marketers choose to segment based on the predictable behavior of certain groups of people. This behavior can be triggered by major events like weddings, funerals, having children, or sending children to college.

Consumer Psychology

The final way to segment a market is by consumer psychology, which includes variables like lifestyle choices, personality qualities, and value systems. Different lifestyle choices that consumers make include marriage, parenting, healthy eating and exercise decisions, environmental conscientiousness, religious choice, and philanthropic activities.