Market Core · Target Audience · Module

Segmentation

How the audience divides in ways that predict behaviour and permit separate treatment — the test being whether two segments would actually be served differently.

The idea

How it works

A segment earns its existence by changing something. If two groups are served identically, reached identically and priced identically, dividing them produces a slide rather than a decision.

Behavioural and needs-based divisions predict better than demographic ones, and demographic ones are easier to obtain — which is why most segmentation is demographic and most segmentation is useless.

Working with it

In practice

  1. 01

    Test each division for consequence

    Name what would be done differently for each segment. If nothing, merge them.

  2. 02

    Prefer behaviour to description

    What people do predicts what they will do. What they are mostly does not.

  3. 03

    Keep the number small

    Four segments that are acted on beat twelve that are described.

  4. 04

    Check the segments are reachable separately

    A segmentation you cannot target is a research finding rather than a plan.

One level in

The components of segmentation

A component is something that exists afterwards which did not exist before — a deliverable or a mechanism, not an intention.

  1. The segments

    The divisions themselves, with what defines membership.

    Learn
  2. The basis

    What the division is built on, and why that predicts behaviour.

    Learn
  3. The consequence test

    What is done differently for each, without which the segment is not real.

    Learn

Name what you would do differently for each segment. If the answer is nothing, they are one segment.