Market segmentation research is the process by which a market is divided into smaller groups with similar characteristics and needs. It involves analyzing demographic, geographic, behavioral and psychographic data to determine which groups of customers are most receptive to particular products or services. The purpose of market segmentation research is to enable companies to target their marketing efforts more effectively and better tailor their offerings to meet customer needs.
Market segmentation research is particularly useful for companies because it allows them to better understand the needs and preferences of different groups of customers and better tailor their offerings to their requirements. Applications of market segmentation research: Targeting marketing: Companies can use the results of market segmentation research to better target their marketing and advertising efforts to reach specific groups of customers. Customizing products and services: Market segmentation research allows companies to better tailor their products and services to the needs and preferences of different customer groups. Getting to know the competition: Market segmentation studies can help companies better understand what products and services their competitors offer and what customer groups they serve. Planning for growth: The results of market segmentation studies can also be used by companies to plan for growth and expansion into new markets.