Target Customer

Segmentation Analysis

By: John Carlo A. Nabor

 Enabling High Quality
Segmentation Analysis

Layers of
Segmentation
Analysis Conducting High
Quality
Customer
Segmentation
Analysis

Making it Happen in Practice

Factors Involve in Segmentation Analysis

Types of Market Customer

Criteria Research Relationship
Management
 Market Coverage Choices

Undifferentiated marketing is when a company treats the market as a

whole, focusing on what is similar among the needs of customers,
rather than on what is different.

Differentiated marketing separates and targets different market

segments, with a unique product or service tailored to each segment.

Niche Marketing also referred to as concentrated marketing, or

focused marketing it is serving a small but well-defined consumer
segment.
 Approaches to Market Segmentation Analysis
1. Based on Organizational Constraints

Segment • Quantitative survey-based approach

• Most Radical
Revolution
Segment • Creation of segments from existing consumer
classifications
Evolution • Less Radical

Segment • Emergence of segments from qualitative research

• Least Radical
Mutation
2. Based on the Choice of Segmentation Variable

• Unidimensional
• A priori (Mazanec JA 2000), Convenience-group (Lilien GL, Rangaswamy 2003)
One Segment • Commonsense market segmentation (Dolnicar S 2004)
•
Variable The aim is not to identify the key defining characteristic of the segment, but to gain
deeper insight into the nature of the segments.
• Ex. Age

• Multidimensional
• a posteriori (Mazanec 2000), post hoc segmentation (Myers and Tauber 1977)
Multiple •
•
data-driven segmentation (Dolnicar 2004).
The aim of data-driven segmentation, therefore, is twofold: first, to explore different
Segmentation market segments that can be extracted using the segmentation variables chosen,
and, second, to develop a detailed profile and description of the segment(s) selected
Variable for targeting
• Ex. Multiple Expenditure patterns
Deciding Collecting
or Not to Specifying the Data Exploring
Segment ideal target Data
segment

Evaluation Ten Steps to Segmentation Analysis Extracting

and Segment
Monitoring
Describing
Customizing Segment
the Selecting
Marketing the Target Profiling
Mix Segment Segment
Examples of Marketing Plan Challenges

Identifying your Setting Price

customers

Creating your
Brand Setting Goals
References:
• https://link.springer.com/chapter/10.1007/978-981-10-8818-6_2
• Marketing Defined, Explained, Applied, Michael Levens, Second Edition, p155
• https://smallbusiness.chron.com/examples-marketing-plan-challenges-11671.html
• Mazanec JA (2000) Market segmentation. In: Jafari J (ed) Encyclopedia of tourism. Routledge, London
• Wind Y (1978) Issues and advances in segmentation research. J Mark Res 15(3):317–337
• Mazanec JA (2000) Market segmentation. In: Jafari J (ed) Encyclopedia of tourism. Routledge, London
• (Lilien GL, Rangaswamy A (2003) Marketing engineering: computer-assisted marketing analysis and
planning, 2nd edn. 
• Dolnicar S (2004) Beyond commonsense segmentation: a systematics of segmentation approaches in
tourism. J Travel Res 42(3):244–250)
• Market segmentation success: making it happen! S Dibb, L Simkin - 2008