Checklist on How to Segment your Market

The 5 steps for segmenting your market are:

  1. Define your market
    What is the market that you are selling your products or services in? i.e. if you are selling women’s skincare and hair products then your market could be the health and beauty market.

  2. Choose a base for segmenting the market
    A base is the starting point for your segmentation. A base could be geographic (people in a certain area), demographic (certain age, disposable income, gender), or behavioural (spending habits, online habits etc).

  3. Develop a measures of segment attractiveness 
    If you have segmented your market into many different segments that could easily fit the bill, you will have to differentiate between the different segments and measure them depending on your specific goals. Therefore you will need to develop a measure that makes it easier to select the most attractive target segment. This could involve coming up with your ideal target market and then comparing each segment to the ideal.

  4. Select the most attractive target segment
    After developing a measure and comparing your ideal with the different segment you have available, you would select the most attractive target segment that is going to give you the greatest return.

  5. Market Mix
    Develop a marketing mix to support the positioning for each target segment

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