Editing Market segmentation (section)

== Segmentation, targeting, positioning ==
{{Main|Segmenting-targeting-positioning}}
[[File:1-s2.0-S0148296325002103-gr2.jpg|thumb|Market segments can be represented by personas, which are imaginary representations of consumers and consumption practices.<ref>{{Cite journal |last=Syrjälä |first=Henna |last2=Ruiz |first2=Carlos Diaz |last3=Leipämaa-Leskinen |first3=Hanna |last4=Luomala |first4=Harri T. |date=2025-05-01 |title=From consumers to consumption: The socio-technical assemblage of the persona in market segmentation |url=https://linkinghub.elsevier.com/retrieve/pii/S0148296325002103 |journal=Journal of Business Research |volume=194 |pages=115387 |doi=10.1016/j.jbusres.2025.115387 |issn=0148-2963|doi-access=free }}</ref>

<p>[https://doi.org/10.1016/j.jbusres.2025.115387 Fig. 2. Representing markets through socio-technical personas] by Syrjälä et al. is licensed under [http://creativecommons.org/licenses/by/4.0/ CC BY 4.0]</p>]]
The process of segmenting the market is deceptively simple. Marketers tend to use the so-called [[Segmentation, targeting and positioning|S-T-P process]], that is '''S'''egmentation→ '''T'''argeting → '''P'''ositioning, as a broad framework for simplifying the process.<ref name=":1" /> Segmentation comprises identifying the market to be segmented; identification, selection, and application of bases to be used in that segmentation; and development of profiles. Targeting comprises an evaluation of each segment's attractiveness and selection of the segments to be targeted. Positioning comprises the identification of optimal positions and the development of the marketing program.

Perhaps the most important marketing decision a firm makes is the selection of one or more market segments on which to focus. A market segment is a portion of a larger market whose needs differ somewhat from the larger market. Since a market segment has unique needs, a firm that develops a total product focused solely on the needs of that segment will be able to meet the segment's desires better than a firm whose product or service attempts to meet the needs of multiple segments.<ref>Del Hawkins & David Mothersbaugh (2010). Consumer Behavior. Building Marketing Strategy. Eleventh edition, McGraw-Hill/Irwin, New York. P 16</ref>
Current research shows that, in practice, firms apply three variations of the [[Segmenting-targeting-positioning|S-T-P framework]]: ad-hoc segmentation, syndicated segmentation, and feral segmentation.<ref name="Feral">{{cite journal |url= https://journals.sagepub.com/doi/10.1177/1470593120920330 |title=Feral segmentation: How cultural intermediaries perform market segmentation in the wild |first1=Carlos A. |last1=Diaz Ruiz |first2=Hans |last2=Kjellberg |date=30 April 2020 |journal=Marketing Theory |volume=20 |issue=4 |pages=429–457 |doi=10.1177/1470593120920330 |s2cid=219027435 |access-date=31 December 2022|url-access=subscription }}</ref>
* '''Ad-Hoc segmentation''' closely resembles the original S-T-P framework in that firms initiate and conduct independently a market segmentation project. Firms focus on a category of offerings as the starting point for identifying a base of consumers and performing analysis to validate distinct consumption profiles. The resulting market segmentation profiles are often treated as trade secrets.<ref name="Feral"/>
* '''Syndicated segmentation''' means that firms purchase segmentation frameworks that are commercially available from specialized firms that apply data science to generate consumer profiles. The resulting segments are available for commercial distribution, and clients can consult the segments for a fee.<ref name="Feral"/> 
* '''Feral segmentation:''' is a process in which cultural intermediaries coin, circulate, and validate the consumer categories that some marketers use as market segments - consumer categories emerge, unsolicited, in popular culture.<ref name="Feral"/> Segments are "feral" because consumer categories emerge in the public domain, unsolicited, without the direct involvement of professional marketers, outside managerial control, and without mobilizing the prescribed market research techniques.<ref name="Feral"/>