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Segmentation: Overview



We are the world, we are the children.  White Men Can’t Jump.  Peking Duck.  What do these things have in common?  Segmentation.

In life, we segment.  From an early age we’re taught the difference between fruits and vegetables.  In marketing, we turn segmentation into a science.  We might target the world on a mass level, but who are we really talking to?  Children or grown ups?  The Reebok pumps from the 80’s – sure we want everyone to buy them but the return from targeting the group that would benefit from the most would surely be greater.  Would you pay $34/person no sides included for any old duck?  Peking Duck?  Heck yeah!  (That is, if you fall within the “Peking Duck Lover” segment.  If you fall within just the “Duck Lover” segment, you’d probably pay $34/person for any old duck – especially if you fall within the “Hungry Duck Lover” segment.  Enough with the duck…)

We target segments based on demographics and psychographics, strategically.  Messaging might be geared towards one demographic, but a secondary segmentation target might be a psychographic.  You guessed it, targeting opens up an entirely different form of segmentation.  Primary targets, secondary targets, tertiary targets – all of which can be segmented.  You can also target segments based on behavior or context.  For the former, maybe the demographic or psychographic isn’t known – so segment based on people who have completed a certain behavior such as coupon redemption.  For the latter, take the sum of the parts and use available demographic, psychographic, and behavioral data to layer targeting – which some call hyper segmentation.

Does this sound confusing, it can be.  This week we’ll be exploring a wide and deep subject – segmentation.  Get ready for the ride by checking out the best “further reading” links ever!

Further reading:

oh yeah, and some wikipedia ish..


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