Market segmentation

target market

a set of buyers sharing common needs or characteristics that the company decides to serve

Mass Marketing

developing products and promotions to please large groups of people

Market Segmentation

the process of dividing a market into meaningful, relatively similar, and identifiable segments or groups

Customer Persona

A detailed description of a fictional person to help a brand visualize a segment of its target market.

market share

a company's product sales as a percentage of total sales for that industry

TAM (total addressable market)

annual revenue your business would earn if it had 100% market share

SAM (Serviceable Addressable Market)

estimates the portion of the TAM, that you can acquire given your limitations - geographic, demographic, marketing and advertising spend, logistics, etc.

SOM (Serviceable Obtainable Market)

the portion of SAM that your company can realistically capture within a specific timeframe considering competition and resources

Innovators

The first group to try new products or technologies. They are highly curious, risk-tolerant, and willing to experiment.

early majority adopters

This segment adopts new products once they've been proven by earlier consumers and they seek reliability and practical benefits.

late majority adopters

A more skeptical group who adopts a product only after the majority has done so and usually do because they feel a need or see it as the new standard.

early adopters

This group includes opinion leaders and trendsetters who adopt new products early but carefully and influence others in their social circles.

Laggards

The last group to adopt new products, if at all. They are typically resistant to change and prefer traditional products.

geographic segmentation

segmenting markets by region of a country or the world, market size, market density, or climate

demographic segmentation

segmenting markets by age, gender, income, ethnic background, and family life cycle

psychographic segmentation

segmenting markets on the basis of personality, motives, lifestyles, and geodemographics

Behavioral Segmentation

A segmentation method that divides customers into groups based on how they use the product or service. Some common behavioral measures include occasion and loyalty.

customer profile

a description of the characteristics of the person or company that is likely to purchase a product or service. used to help a business understand who their customers are, what they need and how to market effectively

monopolistic competition

a market structure in which many firms sell products that are similar but not identical. product differentiation is present

perfect competition

a market structure in which a large number of firms all produce the same product

Oligopoly

a market structure in which only a few sellers offer similar or identical products

Monopoly

A market in which there are many buyers but only one seller.

Empathy Map

A tool that can help you visualize what another person may say, think, do, or feel in a situation

competition

the rivalry among businesses to sell their goods and services

Market share formula

(Sales of business / total sales in market) x 100