how to determine your market segment
there s no single universally accepted way to perform market segmentation to determine market segments it s common for companies to ask themselves the following questions along their market segmentation journey benefits of market segmentationmarketing segmentation takes effort and resources to implement however successful marketing segmentation campaigns can increase the long term profitability and health of a company several benefits of market segmentation include the approximate percentage of company revenues that are spent on marketing according to the spring 2024 cmo survey 2limitations of market segmentationmarket segmentation also comes with some potential downsides here are some disadvantages to consider when implementing market segmentation strategies examples of market segmentationmarket segmentation is evident in the products marketing and advertising that people use every day auto manufacturers thrive on their ability to identify market segments correctly and create products and advertising campaigns that appeal to those segments for example different zip codes can have drastically different average incomes which impacts car buying budgets and terrain people living in a big city tend to prefer smaller cars while people living in the country may prioritize greater fuel efficiency and perhaps even off road capabilities cereal producers market actively to three or four market segments at a time pushing traditional brands that appeal to older consumers and healthy brands to health conscious consumers while building brand loyalty among the youngest consumers by tying their products to say popular children s movie themes a sports shoe manufacturer might define several market segments that include elite athletes frequent gym goers fashion conscious people and individuals who have health issues or who spend a lot of time on their feet in all cases the manufacturer s marketing intelligence about each segment enables it to develop and advertise products with a high appeal more efficiently than trying to appeal to the broader masses 