Today I was listening to someone talk about how in the age of the internet demographic data is not nearly as relevant as it was throughout the 20th century. Data points like your age, zip code, and educational background are still relevant but not nearly as much as psychographic and behavioral data.
This got me curious about how else can you segment a market? I had always thought the best way to segment a market is by demographics but after doing some research I learned that there are actually 4 ways to segment a market including:
- Behavioral Segmentation: Segment the market based on the individual’s behavior, usage and decision-making pattern.
- Demographic Segmentation: Segment the market base on the individual’s variables like age, gender, family size, income, occupation, etc.
- Psychographic Segmentation: Segment the market base on the individual’s values, interests, lifestyle, etc.
- Geographic Segmentation: Segment the market based on where they’re from
Now looking back I realize that this quite obvious but I had never thought about it in this way. I think this speaks to the importance of having the vocabulary to articulate something brings that something from the unconscious into your conscience.
That’s it. This post is more about reflecting on this interesting thing I learned today(: