Market Segmentation
Market segmentation is the process of identifying customer or potential customer subgroups that respond or are expected to respond differently to marketing variables including product, price, place (distribution) and promotion. The term market segmentation has been closely linked with the term “target marketing.” However, there are important differences between the two. While market segmentation involves dividing the market into subgroups as noted above, target marketing is the process of identifying the most attractive market segmentations and designing marketing strategies to reach them. DSS has probably done more market segmentation work in the health care space, particularly health insurance, than any other research firm.
