TARGET, SEGMENTATION AND PROFILING

DATA: How can it help companies understand customers and prospects?

The wealth and volume of data available to marketers enables them to:

Segment -- Profile -- Target

What is Segmentation?

A practice of dividing a customer base into groups of individuals that are similar in specific ways, such as age, gender, interests or spending habits:

1. Decide what data will be gathered and how it will be gathered
2. Collect and integrate data from various sources
3. Develop methods for segmentation analysis
4. Find effective ways to communicate from relevant units such as marketing or customer service.

Importance of segmentation: 

Efficiency -- New Market Opportunities -- Better Brand Strategy -- Improve Distribution Strategies

Market segmentation: 

Demographics:                                              Geographics:
Age                                                                    Local
Gender                                                             Regional
Marital Status                                                 …