Zappi's market segmentation capabilities

What is market segmentation?

There are four key types of market segmentation: geographic, demographic, psychographic, and behavioral. 

Marketing teams are usually the ones developing market segmentation strategies, which are mostly based on primary research and deep consumer Insights. Segmentation is then used by insights teams to ensure consistent audience classification.

How can market segmentation help you?

  • Identify high-value market segments by identifying groups of people predisposed to your brand proposition
  • Understand the pain points, wants, and needs of specific segments
  • Create stronger and more relevant marketing messages
  • Allow multi-brand companies to grow by targeting different groups of people with different brands

To apply market segmentation to an audience for primary research, typing tools may be used.

What is a typing tool?

A typing tool is a way of segmenting an audience, based on market segmentation research. This allows customers to test creatives and concepts and see how the different consumer types they have identified react to them.

What are the components of a typing tool?

  • Input Questionnaire: a series of questions a respondent must answer in order to be correctly classified into a market segment
  • Algorithm: the equation(s) required to take responses to the input questionnaire, and categories the respondent into the relevant market segment
  • Output Segments: the resulting market segments, as defined by the respondents' responses to input questions and classification from the algorithm

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