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Who are your customers? In which aspects do typical customer groups differ from each other? What is of particular importance to specific groups of customers?

Market segmentations provide answers to these questions. They divide the sum of consumers of a target market into groups (types) in such a way that customers within each of those groups are as similar as possible, whereas the groups themselves are as different as possible. The result is described as a segmentation or as a typology.

There are two central targets of segmentation: First, identifying homogenous segments makes it possible to address them with more targeted marketing strategies. A target-oriented approach to communication is important, since there are differences between the groups regarding their needs, preferences and motives.

Second, market segmentation is an important method for avoiding misleading averages in study results. For example, it can reveal that a specific feature might not be of moderate importance to all consumers (average) but that instead it can be very important to one group, while entirely unimportant to another. Without this deeper analysis, such information would have remained invisible– which could have led to none of the consumer groups wanting to buy the product.

Once a typology has been established, a short questionnaire can be created, based on which new consumers can be allocated to the respective groups in the typology. Thus, the differences between types can be illustrated in later studies, too.

We conduct market segmentations either by traditional cluster analysis (hierarchical cluster analysis, K-Means Cluster Analysis, Two-Step-Clustering) or by using enhanced methods such as latent class analysis, decision trees or self-organising maps.

You’d like to get a clearer picture of your customer groups? With our segmentation methods, we help you create a typology of your customer groups. We look forward to hearing from you!