What are the criteria for selecting segmentation strategies in marketing research?

There are many different types of segmentation, but here's what it really comes down to.... What can you ACTUALLY use? There is no point in creating a whizz bang segmentation model if your trading team can't do anything with the insight. Or your marketing team doesn't have the resources to react dynamically. I always recommend my clients add in a filter of useability to their segmentation design to make sure it doesn't end up in the metaphorical filing cabinet.

When selecting a segmentation strategy in market research, usability and understanding the target market's preferences are the most important criteria. The usability of a segmentation strategy refers to how easy it is to implement and use. A good segmentation strategy should be clear, concise, and actionable. It should also be flexible enough to be adapted to changing market conditions. Understanding the target market's preferences refers to knowing what is important to them and how they make decisions. This information can be used to develop segmentation strategies that are more relevant and effective Sometimes, it can be a mix of different segmentation criteria to create a more nuanced and accurate understanding of their target market.

Traditional segmentation strategies have to be relooked with the current technological advancement. With the rapid development of AI and Machine Learning technologies and its application in every walk of life, all leading retail and ecommerce platforms are inclined towards Behavioral segmentation whereby they analyze the minutest behavioral pattern and come up with need based innovative products and services for the target audience.

As a rule of thumb, I would recommend NOT starting your first research with customer segmentation. Segmentation is done AFTER researching and identifying patterns in your target audience. Those patterns should guide your segmentation and should be based on what has the most correlation with the preference for your product/service. Every once and then, re-do this segmentation, as customers' preferences keep changing, and being too focused on a 'standardized' segmentation may cause bias in future insights.

A lot of experts argue that psychographic segmentation is of no real use since most often its difficult to get the numbers on it. I find it useful when you need to design an advertising campaign on it,or even launch a media strategy plan on its basis. Demographic segmentation is at the basis of any media strategy or even TG for a brand campaign. Whats important is why you want to do segmentation.like if its Sustainability enthusiasts then its about Lead users, early adopters and non users. I generally find this usership definition most useful. Though psychographic segmentation makes most sense in a mature category.

I think, The More specific segmentation evaluating the more you know how impact your treatment are good enough or not.

Making a decision on segmentation criteria will largely depend on the MVP. The MVP is a product or service that is just good enough to get feedback from customers. It is not yet perfect, but it is enough to test the market and learn about the target audience. The MVP can help to inform the segmentation strategy by providing insights into the following: Which features are most important to customers? How do customers use the product or service? What are the different needs and wants of different customer segments? Once the MVP has been launched and customer feedback has been collected, the market researcher can use this information to develop a segmentation strategy that is more likely to be effective.

Actionability in my experience is where I've seen a lot of businesses struggle. Pen portraits are a great way to foster shared understanding of who customers are across an organisation but being able to identify them in the data is key.

The criteria for selecting segmentation strategies in marketing research include: Relevance: The segments should be meaningful and relevant to the product or service being marketed. Measurability: The segments should be identifiable and measurable in terms of size and purchasing power. Accessibility: Segments should be easily reachable and serviceable through various marketing channels. Differentiability: Segments should be distinct from each other, each responding to different marketing mixes. Actionability: The segmentation should provide clear implications for marketing strategies and tactics, allowing effective targeting and positioning.

The most effective and guiding post hoc segmentation is by preferences or rejections resulting from the hedonic evaluation of the sensory experience that the product delivers. In my opinion, we need to seek the essence that leads to repurchase and brand loyalty. Cluster analysis based on product-related hedonic data, measured in the moment of the affective sensory experience combined with the perception of the product's value delivery is ideal.

Post hoc segmentation are mostly used for Brand extension and penetration. By understanding the current customer based and there behavioral patterns will give lot of insights for future brand expansion. Established brand with use this strategies to expand there consumer base.

I'd add that "a priori" should only be used when you have proven your segmentation and are doing a research project with a specific objective. And "post-hoc" should be used when doing a more exploratory project, where you're unsure what's going on and want to understand better.

At least in B2B SaaS, differentiated and concentrated are treated equally and are the most usual marketing segmentation. Micromarketing is usually done for ABM strategies. Mass marketing, IMO, only serves DTC brands/companies.

You can never win with mass marketing unless you're selling a commodity and have a price or market access edge, it is irrelevant to any segmentation efforts for 99.9% of the businesses

In my experience, I've never seen these as "segmentation objectives" but as general research objectives or types of studies. I find it odd to think that segmentation can be predictive or prescriptive, it's research projects that can aim to do that but not customer segments.

Creating effective marketing segmentation strategies is like curating a stylish wardrobe - each element must be chosen with finesse. Begin by ensuring your segments align with your marketing objectives and resonate with your target audience while remaining easily measurable and accessible. Seek segments that offer stability and profitability, allowing for enduring value and strong returns. Make sure each segment is distinct, enabling tailored marketing approaches, and assess their size and feasibility. Your goal is to secure a competitive advantage within chosen segments, positioning your brand as a trendsetter in the market.

While I appreciate much of the thought behind this article, you really need to identify the true purpose for doing the segmentation clearly defining how it will be used. Without clarity of purpose you'll spend a lot of time and money on research that's never ultized. I've seen too many companies rush in hoping that a segmentation will solve their business issues instead of being a tool to inform better business decisions.