“Beautiful of your Marketing Plan contains information about your

“Beautiful product
development in an ugly market segment simply makes no sense.” – Dan Adams, This
is a lovely quote actually


The Market Analysis section of your Marketing Plan contains information about your

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target market,
competitors, and marketing trends.

is good market segmentation? Good market segmentation research should provide
your company with a clear direction to move forward with an idea of which markets will be best to
target. The market research shows to target should represent a high share of potential
profitability to the company. It should also be easy to identify among the
population of research.

your market segmentation research is not meeting the above requirements, then
that is what you’re doing wrong. You’ll need to re-gather your research team
and clearly define their goals and the information they should be gathering
from their market segmentation research.

market segmentation research is a waste
of your time, money and energy. These segments should be ones your
competitors don’t even know exist (Which is very hard for our competition
because markets are very common like Bahrain). This end goal will improve your
marketing efforts and boosting your market share and profits.

In parallel with market targeting, We should do customer
segmentation also. You can identify your targeted market by asking:


First, Who are you
selling to? Who are your ideal customers? Your target market should be defined
in terms of demographics, psychographics, and niche markets ( i will explain


to the statistical data of a population, including average age,

income, and education.
Government census data is a common source of

demographic information. Using demographic parameters is an
effective way to segment your target markets. Think about the types of
customers your business is targeting. If you have a regional product, perhaps your customers are
located in certain cities or states. Your product may be targeted for businesses,
individuals or both. As you brainstorm, you’ll start to recognize
different groups forming.


Psychographics uses demographics to determine the attitudes and tastes of a

particular segment of
a population. Psychographics examines lifestyles: where

people spend their
vacations, where they shop, how they spend their disposable

income, what sports
they participate in or watch, which clubs/organizations they

join, and more.

so here we benefit from Psychographics as they analyse your customers’ values, personality
traits, interests, attitudes and opinions. This information helps you
build a clearer persona for each of your groups. Is your customer independent
or does she long to feel included? What does she value? If you aren’t sure,
hiring an outside market research company to run focus groups or conduct
research surveys is a great way to gain more insight. Contacting a local
business school to help is a less costly option.


Niche markets are a small segment of the population that shares common

characteristics, interests, spending habits, etc. Successful niche
marketing focuses

on a small segment of a total market. It is the best strategy for a
small business to

achieve a market leadership position. It is expensive, and bland, to
try to be all

things to all people.


briefly in other words as I Understand it. To make a good market segmentation
you have to collect these data

Psychographic: Grouping your
customers into cultural clusters, social status, lifestyle and personality

Decision Makers: Grouping
your customers based on who decides to purchase your product within the company

Behavioral: Grouping customers
by product usage. For example; light, medium or heavy users. This stage also
factors in brand loyalty and the type of user.

Geographic: Grouping customers
by a specific area, such regions of the country or state and urban or rural.

Distribution: Grouping customers
based on where they go to purchase your product, such as online, store or
through a catalog.

Demographic: Grouping customers
by age, income level, gender, family size, religion, race, nationality,
language, etc.

 Don’t define your segments
too broadly. This will give you a greater opening to a competitor who targets
more narrowly.( a note from Delft Business planner 2016)

So we can’t choose a whole continent for our prodeuct because it’s
so hard to compete in such big place. You have to choose a single country in
the first.

Scientifically, Here is the steps we will follow to implement our
market segmentation with an example of book shop ( It’s so illustrative)

Step One – Define the market

first step in creating market segments is to clearly define the market of interest. As
discussed in the markets, sub-markets and product-markets section, it is
important not to define a market too broadly.

assume that you are looking to segment the market for a firm that operates a
chain of book stores. It would be too top-level and too awkward to define the
market as all retailing consumers, as it is unlikely to lead to any meaningful
segmentation. ( an important reminder of Delft’s note)

shown here, we need to split out the overall broad market (retailing) into its
various sub-markets (such as, supermarkets)

Step Two – Create market segments

that we have defined the product/market clearly (which we will refer to as ‘the
market’ from this point on), we
need to determine what types (segments) of different consumers form that
overall market. To do this, we need to review the list of segmentation bases/variables and choose
two or three of those variables that we think (or know from market research)
affect the purchasing behaviour of book consumers.

this market, let’s pick three different variables from the list, as per the
following table. These particular segmentation variables have been chosen as
they are likely to influence the purchasing behaviour of books and, therefore,
should lead to the identification of interesting segments.

Here, five different segments have been
created by applying these segmentation variables. In the first stage, a broad
demographic split has been used (to create children, young adults and older
adults segment). The two adult segments then have a behavior variable applied
to them (whether they enjoy shopping or just like to get in and out quickly).

that are many ways to segment the same market. Provided that the segmentation
variables have some logic to them, most outcomes should be quite acceptable.

Therefore, our five market segments in this
example are:


adults (18-40 years), who enjoy the shopping experience

adults (18-40 years), who are functional/convenience shoppers

adults (40+ years), who enjoy the shopping experience

adults (40+ years), who are functional/convenience shoppers

Of course you can map easily to our competition, young and old one.

Step Three – Evaluate the proposed market segments for viability

Now that we have developed some
market segments we may be required to evaluate them to ensure that they are
useable and logical. This would happen in a real-life
firm, but it may not form part of your particular task.

To do this, you need to quickly
assess the segments against a checklist of factor. Basically, all that is required is to list the evaluation criteria
and to provide a supporting comment, as is demonstrated in the following table.

If, on occasion, the segments
that you have created don’t appear to meet the evaluation criteria, then simply
revisit step two and change the segmentation variables that you have selected.

Step Four – Construct segment profiles

You may be required to describe
the segments (develop a segment profile). The following is a checklist of
factors that you might consider. For some of these
items below you may not know actually in that case either make a logical
assumption or do not include the factor in the segment profile. Remember that
the task here is to describe and understand the segments a little more

Five – Evaluate the attractiveness of each segment

If you are required to select
one target market from you list of market segments, then you need to use some
form of objective assessment but as a guide you should use some of the
following factors in assessing the attractiveness of each market segment.

Financial Issues


growth rate


Structural Attractiveness



Six – Select target market/s

Using the assessment information,
you have just constructed, you can select the most appropriate target market
for the firm. While there are many factors to consider, you should at least
take into account: the firm’s strategy, the attractiveness of the segment, the
competitive rivalry of the segment, and the firm’s ability to successfully

I have also read a good example on the
internet, It can illustrate also everything

you work through implementing your marketing segmentation plan, it would be
typical to see something like the below diagram to demonstrate to your team and
all parties involved.

example shows you the possible markets your product or service can be broken
down into after all the research has been done and analysed. It also
demonstrates how far you can break down a particular segment, which is crucial
to truly finding your target market and adapting a marketing plan to align with

 Let’s go to our case study of
Formula one cars. Here how I will choose my market, I will demonstrate the
parameters of our market needs then i will show what markets have this
parameter and the most appearing market in our parameters will be the chosen
one. I will explain also the parameters from my point of view. Of course, this
is not an optimum solutiob

Budget conscious shoppers

all markets will have a group of consumers that are very price sensitive. These
consumers may make their purchase decision based on the lowest price, or select
the product that represents the best value for money.

consumers are very attracted to sales promotions and special offers. As a
result, they have limited brand loyalty as they see limited financial benefit
in remaining loyal while paying a price premium.

consumers in the segment may have a limited income, but many see themselves as
“smart shoppers” and enjoy the challenge of saving money.

Markets: South America, Europe, Africa, Asia( india and china )

Note: of course you can’t say that Bahrain do this ;’)

Focus on quality

opposite of the budget conscious consumer market segment are those consumers
interested in higher quality products and services. This does not necessarily
mean that this market segment likes to “waste” money, many consumers in this
segment believe that buying higher quality represents better value over time.

some markets, consumers are attracted to high prestige products and brands in
order to demonstrate their success to others. And some other consumers in this
segment simply like having nice products and good service.

Markets: Gulf, Europe(like Switzerland), North America(US and
Canada), Australia, Asia( Singapore and japan)

Attracted to strong brands

market segment is less involved in their purchase decision, and will rely upon
a strong brand to guide their purchase decision. In particular, we may see this
in purchases of electronic and entertainment products, whether market segment
will be primarily attracted to a brand with a strong reputation

in this market segment will take comfort in that buying from established brand
is a safe and low risk decision, particularly for purchases that they do not
undertake frequently.

note: This parameter is not for us, We are not targeting this market because we
are a stratup. So the point here is negative.

Markets: Gulf, Europe, North America(US and Canada), Australia

Environmentally aware

emerging consumer segment in many markets consists of people who take into
account the environmental impact of their purchases.

will extend to components of the product itself, packaging, ability to easily
dispose of product after use, reputation of the brand itself (that is, its
corporate social responsibility reputation).

Markets:  Europe, North
America(US and Canada), Australiaa, Asia

Note: this is positive point because we will make it environmentally

Social status

particular market segment can be considered an extension of “focus on quality”
customers segment discussed above. However, in many cases, the size of this
market segment is large enough to be warranted as its own target market.

in this segment use brands and products as a means to signal their
self-identity and social status. This would be quite common in markets such as
cars, alcohol, cigarettes, holiday destinations, restaurants, clothing,
jewelry, and so on. That is, visible public products which other consumers
(friends, family, and work colleagues) would be aware of.

Markets: Gulf( UAE), Europe(like Switzerland), North America(US and
Canada), Australia, Asia( Singapore and japan)

Variety seekers

markets will have a group of consumers who seek out variety. Some consumers
simply like change and choice, whereas others like to experience new things.

consumers are quite responsive to product line extensions and new products – as
a result, they are an attractive initial target market to generate sales for a
new product, as they are more responsive and are likely to have a greater
proportion of opinion leaders.

Only Gulf (UAE and Bahrain)

Existing customers

final market segment provided in this list of potential market segments is
simply the firm’s/brand’s existing customer base. Although this would need to
be segmented down further, as per the above market segments, it is highlighted
here as it is sometimes accidentally overlooked.

oversight situation occurs because some marketers are overly focused upon
growing the business through new customer acquisition, rather than the
mechanics of retaining existing customers.

Gulf, Europe(UK, Germany, France)

Infra structure

our case, Does your market has tracks (circles)

Bahrain, UAE, UK, Italy, Austria, Germany, Australia, Some asian countries


Europe and US