Beer was first brewed 7.000 years ago, and at that time, there were only two categories of people: drinkers and nondrinkers.

Today, we have over 23 types of beer, hundreds of styles, and countless SKUs. How did we get to this point?

Geographical expansion played a part in the proliferation, but segmentation did the rest. Light beer, fruit beer, sour beer, craft beer, and zero alcohol beer are all results of catering to different segments. Growing spending power, changing tastes, social dynamics, and competition have led consumers to split into segments.

This trend is not limited to the beer market. For instance, there are moisturizers for different age groups, skin types, and skin tones, countless types of shampoo, insurance policies for education, housing, and travel, and internet packages for various types of data.

The only thing that does not appear to have various segments yet is the air we breathe, but there are numerous types of house perfumes and air purifiers to choose from, so I could be wrong.

The point is, we can no longer sell the same thing to everyone. We need to pick segments and serve them better, or someone else will.

Source: Hires

Practices

Market segmentation is the process of dividing a large market into smaller groups of customers who have similar needs, interests, and behaviors. Here are the general steps you should take when segmenting the market:

  • Define your overall market. Find out who you want to sell your product or service to in general. This could be a certain area, age group, gender, level of income, or anything else that is important.
  • Find potential segments. To find potential segments, look at the needs and traits of your target market. You might think about things like population, personality, behavior, and attitude.
  • Evaluate the attractiveness of each segment. Look at the size, growth rate, profitability, competition, and other factors to figure out how each segment could grow. This will help you figure out which segments are the best ones to go after.
  • Choose your target segments. Based on what you've learned, choose one or more segments to focus on with your marketing. The segments you choose should help you reach your business goals and give you the best return on your investment.
  • Make a marketing mix. Make a marketing mix that fits the needs and tastes of your target segments. This could include how the product is made, how it is priced, how it is promoted, and how it is sold.
  • Check and change. Your marketing efforts should always be checked and changed based on feedback and changes in the market. This will help you stay current and reach your target groups more effectively.

Overall, market segmentation is an important part of making a good marketing plan. You can improve your chances of success and set yourself apart from the competition by knowing your target segments and making your efforts fit their specific needs and preferences.

Market segmentation is an important part of making a good marketing plan.Source: Envato

Examples

Consumer electronics is a huge and varied market with many different segments based on things like product type, price point, and user demographics. Here are some examples of brand segments for electronics:

  • Smartphones: The market for smartphones is very competitive, and there are many different segments based on price, features, and loyalty to a certain brand. For example, Apple's iPhone is aimed at high-end users who care most about design and user experience. Samsung and Xiaomi, on the other hand, offer cheaper options for consumers on a budget.
  • Gaming: The gaming industry is split into its own groups based on the type of device, the age of the user, and how they like to play. For example, gaming laptops and high-end gaming PCs are made for serious gamers who want the best performance and graphics, while gaming consoles like the PlayStation and Xbox are made for a wider range of users who value convenience and ease of use.
  • Wearables: Smartwatches, fitness trackers, and other devices that can be worn on the body are all part of the wearables market. In this market, there are both sports fans who care most about fitness tracking and performance metrics and fashion-conscious people who care most about design and style.
  • Home entertainment: TVs, soundbars, and streaming devices are all part of the home entertainment market. In this market, there are users who care most about picture quality and advanced features and users who care most about price and ease of use.
  • Home appliances: Refrigerators, washing machines, and dishwashers are all part of the home appliances market. Users who care most about energy efficiency and the environment are one segment of this market. Users who care most about advanced features and smart home integration are another.

Overall, there are many different types of consumer electronics brand segments, and they are always changing as technology, user tastes, and market trends change.

Source: Brands Vietnam