Market segmentation research is a vital part of any marketing research project and can be easily implemented into any stage of the project. In general there are four major ways of segmenting a market according to the level of precision you require and the type of data and analysis available about your customers. Please find below those types of market research segmentation:

A Priori market segmentation

This is the oldest and the most classic way of proving market segmentation by using demographics and geodemographics. You can add some other components to those two (such as lifestyle etc or education grade, taken from the local, Eastern European census), however this approach has its own classic character as defined.

In this approach segments are easy to define and easy to target with advertising and media. In some market sectors, for instance technology, there are such strong relationships between age and use, and these are the same from country to country. Than a-priori segments are all that are needed. However in other markets - for instance drinks, it is more difficult to use pre-existing variables for segmentation.

A priori segmentations are also the simplest segmentation techniques for applying and using. A database can be flagged or sorted on the pre-existing data and that data used to drive sales and marketing campaigns.

Whatever you do with this classic segmentation approach, it has been utilised over many years (e.g. by sales people starting their career from the Yell Phone Book)

Usage segmentation

In principle, the most important factor determining this type of segmentation is frequency of usage.

There are several significant parameters in this way of segmentation:

• Weight of usage – heavy users vs. light user (this might stimulate your marketing decisions to who you should target for);
• Usage segmentation where the most significant factors are time and place of use; (this indicates some specifications taken from usage and attitude research outcomes or directly segmented from your sales data if applicable);

Needs based segmentation

Needs based segmentation is third and the most advanced (from the research executive point of view) segmentation technique. Very often it utilise conjoint analysis in order to present the crucial bucket of drivers and motives if any commercial or consumer purchase is concerned.

If the conjoint and in addition needs based segmentation will be combined with demographics and usage segmentation, the job is completed and as a result we are able to present complete output segmented in the most efficient manner for any of Eastern European countries.

Please do not hesitate to contact us for further details.