Examples of Market Segmentation in Marketing

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Disadvantages include the potential for loss of reach due to an excessive desire for personalization and the possibility of missing out on new promising segments if you focus your efforts on previously identified ones.



Segmentation errors
When accessing customer data, analysts and marketers are overly enthusiastic about the patterns they see. In this vp quality email lists case, the temptation is great to identify too many segments that will be impossible to manage. The same mistake occurs when there are no clear goals at the start. When identifying segments, it is important to remember what questions the business wants to answer or what actions to take on them.

It is worth paying attention to clustering: the selected segments may either be too similar to each other and have minor differences, or one of them will “fly in” clients who would logically be allocated to another group.

Another mistake is focusing on averages rather than medians. This can also affect the number of segments or clusters.



Segmentation is an iterative process that can be adjusted after discussing the results, especially if it is done using machine learning technologies or through clustering.


A successful example of market segmentation is the case of Nike, which managed to increase its revenue by 24% by dividing the market by gender and attracting female customers.

Another example is the case of the British retailer Tesco, known for its loyalty program and high quality of work with customer data. Based on segmentation and market analysis, the company opened various store formats depending on their location and behavior style in them. Thus, in densely populated areas of the city, where people usually make "quick purchases", they were offered the Tesco-Express format; in the suburbs and on the outskirts, where it is common to make large purchases, the Tesco Metro and Tesco Homeplus formats.