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Knowing how to segment, the key to success.

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Did you know that 85% of our behavior is based on emotions? We could start thinking about which emotional variables lead to sales of our product and also segment the consumer based on these more emotional variables. Consequently, the consumer behaves differently, and in a very diverse way, depending on hundreds of variables. This will make us change our behavior towards a product, even deciding whether to consume it or not.

Do we drink the same soda, beer, or wine when we are with friends as we do when we are in a casual business meeting? What about with family? How about when we are alone? Do our habits or brand choices change depending on the time of day? What about when our team wins or loses?

Companies insist on segmenting the market based on classic and rational variables such as age, gender, residence, social class, and lifestyle. However, the value of these segments changes based on other variables like the company, the sought value of the product at the time of consumption, the occasion of consumption, etc. Segments are not static, and this is the topic we intend to explain.

Why should you segment your market?

Let’s imagine that, thanks to market research, we are able to calculate these consumer movements between segments, and we can segment the market based on these dynamic variables. We could determine market dynamics by observing consumers who switch from one segment to another based on emotional, attitudinal, or lifestyle variables. In fact, there are multivariate statistical techniques with this objective, which help us understand the market better. As a result, marketing mix actions can be carried out for these types of segments and attract consumers that were not considered until now.

How to segment correctly?

We must not forget that for a segment to be effective, it must meet several requirements. If it is not sufficiently large, not accessible, not measurable, or the efforts to penetrate it outweigh the potential benefit, then it is no longer a target. Even if all the above conditions are met, but the segment responds heterogeneously to the action, the segment will not be efficient.

At the same time, the brand can act differently for each segment, just as social media users publish different content for each group of friends. Moreover, by selecting a good segmentation criterion, we can discover previously undiscovered niches, which will expand our market.

This dynamic market can be understood through rigorous market research and collecting information on as many variables as possible. In fact, these variables will determine the viability of each segment and, by analyzing the data, show us the most suitable segmentation criterion for each product.

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