Editing Market segmentation (section)

==== Cultural segmentation ====

Cultural segmentation is used to classify markets according to their cultural origin. Culture is a major dimension of [[consumer behaviour]] and can be used to enhance customer insight and as a component of predictive models. Cultural segmentation enables appropriate communications to be crafted for particular cultural communities. Cultural segmentation can be applied to existing customer data to measure market penetration in key cultural segments by product, brand, and channel as well as traditional measures of recency, frequency, and monetary value. These benchmarks form an important evidence base to guide strategic direction and tactical campaign activity, allowing engagement trends to be monitored over time.<ref>Ellson, T., ''Culture and Positioning as Determinants of Strategy: Personality and the Business Organization'', Springer, 2004</ref>

Cultural segmentation can be combined with other bases, especially geographics so that segments are mapped according to state, region, suburb, and neighborhood. This provides a geographical market view of population proportions and may be of benefit in selecting appropriately located premises, determining territory boundaries, and local marketing activities.

Census data is a valuable source of cultural data but cannot meaningfully be applied to individuals. Name analysis ([[onomastics]]) is the most reliable and efficient means of describing the cultural origin of individuals. The accuracy of using name analysis as a surrogate for cultural background in Australia is between 80 and 85%, after allowing for female name changes due to marriage, social or political reasons, or colonial influence. The extent of name data coverage means a user will code a minimum of 99% of individuals with their most likely ancestral origin.