5 Types of Market Segmentation

& Segmentation Examples

Presented by Tristan Senycia
What is Business Station?

▪ A Not-for-Profit organisation helping the

Commonwealth Government support small business

▪ We run the Digital Solutions Program

▪ Help Small Business Owners undergo Digital

Transformation

▪ Incubators in WA & Qld.

▪ Partners across Qld including GC Innovation Hub &

AngelLoop

5 Types of Market Segmentation & Segmentation Examples

Who Am I?
• Highly resourceful and purpose-driven General
Business Advisor & Product Strategist

• Helps Start-ups, Scale-ups and Small Businesses by

performing 360 Diagnostic Reviews & Health
Checks

• Experienced Business & Partnership developer,

always looking for opportunities to collaborate with
organisations aligned with helping Small Business

• Open Networker, Connector & Referrer both within

the Digital Solution program & external

5 Types of Market Segmentation & Segmentation Examples

What is Market Segmentation?

- Market segmentation is a marketing technique that

involves segmenting a target market into smaller,
more defined segments, enabling a business to
conduct stronger market research into customers.

- By participating in market segmentation,

researchers can reveal:
- Consumer experience insights,
- Product development innovation approaches,
- Suggestions for boosting customer loyalty,
- and more.

5 Types of Market Segmentation & Segmentation Examples

The Importance of the Market
Segmentation Process

- Unlocking new competitive

advantages

- Improving the product

development process

- Optimising campaign performance

5 Types of Market Segmentation & Segmentation Examples

How to Conduct Segmentation
Research

1. Set an objective
2. Identify customer segments
3. Evaluate the target segment
4. Develop market segmentation
strategy

5 Types of Market Segmentation & Segmentation Examples

Overview of the 5 Types of
Market Segmentation
- Behavioural Segmentation
- Psychographic Segmentation
- Demographic Segmentation
- Geographic Segmentation
- Firmographic Segmentation

5 Types of Market Segmentation & Segmentation Examples

Behavioural Segmentation
- Behavioural segmentation digs deeper
into customers' purchasing habits than
demographic segmentation.
- It’s also one of the most popular
customer profile types to be integrated
into marketing campaigns.
- Behavioural segmentation comprises
behaviour patterns, like:
- Customer loyalty
- Engagement level,
- Specific to customer interactions with
a brand or company.
5 Types of Market Segmentation & Segmentation Examples
Psychographic Segmentation
- Psychographics is a type of customer
segmentation that focuses on inner or
qualitative traits.

- Psychographic attributes are the ones

that aren’t obvious just by looking at
your customer, like demographic
segmentation.

- Instead, psychographics requires deeper

analysis.

5 Types of Market Segmentation & Segmentation Examples

Demographic Segmentation
- Demographics are the breakdown of
your customer personas in the market
for cursory traits like age or gender.

- These traits offer basic information on

your customers and are often considered
one of the more broad segmentation
types.

- Examples of demographic segmentation

include age, income, family size,
education, or gender.

5 Types of Market Segmentation & Segmentation Examples

Geographic Segmentation
- Country

- State

- City/Town

- Local Government Area

- Suburb

5 Types of Market Segmentation & Segmentation Examples

Firmographic Segmentation
- You can use firmographics to describe
the attributes of firms or businesses.

- Firmographics are to firms and investors

as demographics are to people.
o Industry
o Sales Volume
o Size
o Methodologies

5 Types of Market Segmentation & Segmentation Examples

 My customer discovery journey from
ignorance to properly segmented market

Presented by Tristan Senycia

‘Product Management for Start-
ups’ service concept in the UK
- Battle scars from trying to serve the
wrong market segment
- IDEA: to help start-ups avoid the classic
errors as they build out their product and
venture
- My story of getting the segmentation
plan ‘very wrong’
- However, needing to start ‘somewhere’

5 Types of Market Segmentation & Segmentation Examples

My Customer Discovery Starting
Point - Invested about £150 to join a 2-day tech
conference
- Sales/Business Development intelligence = zero
- The plan was to understand market need /
current challenges were for this market
- It was a bit overwhelming
o Subconsciously I knew what I was doing
something out of the ordinary
- Trying to go straight to customer rather than
gain a systemic understanding of market

5 Types of Market Segmentation & Segmentation Examples

Problems I encountered
- Each start-up was different and had different
challenges
- Product Management meant different things to
different people
- I was quite rigid in what I wanted to do… what I
wanted to offer
- I wasn’t really listening
- I was trying to find places to push my services
rather than deeply understanding the market
and having the market ‘pull value out of me’

5 Types of Market Segmentation & Segmentation Examples

Behavioural Analysis of Start-ups
- Startups have a very low willingness & ability to pay
- Startups are almost exclusively price-driven
- Startups are often still learning what they are doing
- Once burnt twice shy
- Tend to only invest money into services they
understand, believe are necessary
- Tend to love going through accelerators, anything
which is free and/or invests in them
- Behaves more like a Consumer rather than a
Business

5 Types of Market Segmentation & Segmentation Examples

Psychographic Analysis of Start-ups
- Startup founders come from all walks of life
- Too much diversity of backgrounds
- Everyone seem to have their own understanding of
what they were doing based on their:
o Knowledge
o Experience
o Professional Backgrounds
o Their peer groups: i.e. Co-working spaces
- Fearful… out of their comfort zone

5 Types of Market Segmentation & Segmentation Examples

Demographic Analysis of Startups
- Often too young to have the pre-requisite
experience & therefore cognitive
development to make a start-up work

- Older entrepreneurs can equally have

critical experience gaps

5 Types of Market Segmentation & Segmentation Examples

Geographic Analysis of Startups
- Thought this might be a factor but turns
out it isn’t that important

o False Customer Avatars like ‘Chelsea

Girls’

5 Types of Market Segmentation & Segmentation Examples

Firmographic Analysis of Startups
- Startup organisations are often extremely
poorly resourced drawing heavily on:
o Personal Financing
o Friends & Family funding
- The reason is that all the money being
invested is risk capital
- They typical have zero/low levels of
traction/revenue

5 Types of Market Segmentation & Segmentation Examples

Lessons learnt
- Very difficult to work directly with 99%
Startup Organisations, unless they have
investment
- The start-up market is highly dysfunctional
because it tries to operate without
sufficient cash investment
- Make certain everything hangs together
before proceeding with a deal
- Realisation: Startups are my USERS not an
ideal CLIENTS
o In fact it is somewhat dangerous to
serve them
5 Types of Market Segmentation & Segmentation Examples
My revised segmentation plan:
My CLIENTS are instead:
- Larger organisations via Joint Partnership
(B2B instead of B2C)
- Not for profit organisations (Government
funded)

USERS can be anyone

- Small Business
- Startup (Funded/Unfunded)

5 Types of Market Segmentation & Segmentation Examples

Behavioural Segmentation

CLIENTS and USERS:

- Are attracted to the way I think
- See value in what I can
contribute

5 Types of Market Segmentation & Segmentation Examples

Psychographic Segmentation
- CLIENTS Have a similar understand of how
business works,
o Fellow advisors
o Accelerator mentors
o Venture Capital / Angel investor

- USERS Pluralists, understand

o They don’t understand everything
o Different people have different life
experiences and therefore perceptions
o That others can add value to your
thinking

5 Types of Market Segmentation & Segmentation Examples

Demographic Segmentation

- USERS Ages vary greatly from late

28 to 70+

5 Types of Market Segmentation & Segmentation Examples

Geographic Segmentation
- CLIENTS Depends on
footprint of my channel
partners

- USERS Jurisdictions where I

know a lot of people & can
therefore make more
introductions

5 Types of Market Segmentation & Segmentation Examples

Firmographic Segmentation

- USERS can be start-ups

- BUT CLIENTS must be:

o Well-funded and/or
o Have a properly commercialised
service I can add value to

5 Types of Market Segmentation & Segmentation Examples

Implications of not segmenting or
not correctly segmenting
- Target the wrong clients/customers
- Can’t distinguish between different buyer types
- Map the wrong products/services to each buyer
persona
- Dilutes your messaging and comms effort
o Same solution (maybe) but different way of
communicating the benefits
o Testimonials/case studies come from
unrecognisable sources
- Dilutes your marketing and go-to-market efforts
- Customer/market understanding/intimacy can be low

5 Types of Market Segmentation & Segmentation Examples

TOP 3 CHALLENGES ON YOUR BUSINESS?

Accessing cost-effective small business and startup support in Australia

How Can
We Help?

Contact me:
Tristan Senycia
tristan@businessstation.com.au

Digital Solutions Team:

7-hour
Call us: 1300 427 227
Email: support@businessstation.com.au
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