LESSON 2: MARKET SEGMENTATION

market segments

are groups of customers who share common characteristics. Segmenting, or dividing, your target market into several small groups, can help you develop a product or service that will meet customer needs. Market research can be used to identify market segments.

customer profile

is a description of the characteristics of the person or company that is likely to purchase a product or service. This can help you meet customer demand. Customers may be profiled based on many types of data, including demographics, psychographics, use-based data, and geographic data.

Demographics

Data that describe a group of people in terms of their age, marital status, family size, ethnicity, gender, profession, education, and income are called this.

Psychographics

Data that describe a group of people in terms of their tastes, opinions, attitudes, personality traits, and lifestyle habits are called this.

use-based data

Data that help you determine how often potential customers use a particular service are called this.

Geographic Data

Data that helps you determine where your potential customers live and how far they will travel to do business is called this.