Market segmentation is a strategy that involves dividing a broad and undifferentiated target market into subsets of consumers who have common needs, desires and values. Signal Corp. was confused by the intelligence they were receiving from the marketplace - were consumers aspiring to luxury products or cheaper alternatives? Were they motivated by trusted brands that deliver status and prestige or were they willing to buy generic products in order to save money? Frustrated by conflicting and confusing information, the CEO demanded that Ali, the head of the research department, commit the company to a clear path forward.
Ali knew what to do. She commissioned Ypulse to conduct a psychographic segmentation of the entire marketplace, with a focus on not only what motivates their consumption, but the broader aspirations and goals they aspire to in order to create messages that resonate at a holistic level.
Once the naturally occurring segments of the market were identified, the fog lifted for Signal Corp. Understanding what motivated consumer segments with affinity for the Signal brand and potential for growth provided a beacon that allowed the company to boldly chart a path forward.
The least you need to know about what's happening in the new Millennial influenced world.
It's not enough to know what. You need to know who and how much. And most of all, why.
Now, what does it all mean for your brand?