Conducting a Segmentation

Markets can be segmented primarily according to geographic, demographic, usage, and psychological segments--or a combination of the above.

B2B firms will segment their customers differently, due to different buying habits and procedures between businesses and end-users.

B2B businesses operate and market their goods and services differently than B2C companies, due to the different nature of the purchase.

Segmentation involves classifying people into homogeneous groupings and determining which of these segments are viable target markets.

Strategic targeting can optimize the return on investment through selecting the best segments in the market for return on investment.