USA Market Segmentation

Posted on June 6, 2008

I know for sure that Small Business Owners don’t think a lot about market segmentation and how they should target the right customer with their services and offers. But, I would say that you need to Discover Your Target Market. Finding out more about market segmentation is mandatory, in at least 2 moments in a business life:

  • start-up time, when checking to see if your business idea is viable or looking for financing
  • when things start to move on the right path and you need to see how you could do more.

Assuming that my readers are from U.S., I was looking for some time to find a good resource to explain the consumer behaviour and market segmentation in the US. I was quite glad to find Linda Morton’s Market Segmentation book that describes in detail various market segments in US and their behavior. It goes through many segments and describes their characteristics. Depending on your business, you can go through all the book, or just pick your target market and see how you can approach the people in it.

The book takes into consideration the following segmentations:

  • Generation Segments (The WWII Generation, Baby Boomers, Generation X, Generation y)
  • Life Stages Segments (Early Adulthood, Middlescence, Age of Mastery, Age of Integrity)
  • Education
  • Social Class Segments
  • Lifestyle Segments
  • National Origin Segments
  • Gender Segments

Then it goes through each of these segments and describes their characteristics. Depending on your business, you can go through all the book, or just pick your target market and see how you can approach the people in it. Let’s say you have a software product and you target young to middle aged people, with good income and an inclination on having the latest tech and gadgets. So, you target Generation x and y, Middle class, and Young Urban techies. Now, I’m quoting from the book, to show you what kind of content you can find:

Browse to page 74, about Generation Y: “Born between 1977 and 1994, members of Generation Y (Gen Yers) have reached young adulthood. Anyone wanting to relate to these 71 million young people must recognize, understand, and adapt to this new generation.” Generation Y appears to be a “notoriously fickle” consumer group, demanding the latest trends in record time. Marketers wanting to reach these young people have “to embrace that type of fast change.” A critical consumer group, Gen Yers “don’t like a hard sell.” They are “brand and fashion-conscious,” but as one advertising manager has learned, you have to get the “merchandise in front of them without being in their face.”

Browse to page 87, to find their Consumer Habits “Just as the middle class is caught between the other two classes in occupation and income, they are also between them in consumption. Those in the middle class strive to purchase luxury items previously reserved for the upper class, but, like the working class, they have limited incomes.”

Browse to page 123, Young Urban Techies- “Only 14 percent of the male population fall into this group. Like Fast Trackers, they are young men, but they are the most inner-directed of all the categories. Only a couple of years older than Fast Trackers, they earn $10,000 per year more. These young men are trendsetters because they buy products based on merits. They are well educated and politically progressive. They like reading newsweeklies, home electronics and political magazines”

And the book goes like this for 186 pages - you would think such a book would cost thousands of dollars, but surprise, it is more than affordable. Even more, Linda Morton’s portfolio includes a comprehensive set of books that talk about Target Market Profiles. The book is definitely not a one time read. You should save it and check if the events in your sales are market segmentation related. Or even better, customize your products for the best target! You would think such a book would cost thousands of dollars, but surprise, it is more than affordable.

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