#1 Consumer Markets

Demographic characteristics:

• Age
• Gender
• Household/family size
• Family lifecycle
• Income
• Occupation (employment)
• Education level
• Religion
• Ethnicity
• Origin/race
• Social status
• Marital status
• Place of main residence, etc.

Additional Considerations: 

• Longer average life
• Effects of birth cycles and longer life expectancy on future age distribution
• New roles for women
• Increasing economic and educational improvement
• Changes in the structure and composition of households

Geographic characteristics:

• Area (urban, semi-urban, rural)
• Region
• Size of city or village
• Population density (sparse, medium, high)
• Climate (warm, mild, cold, tropical, Mediterranean)
• Terrain formation (plain, semi-mountainous, mountainous, island)
• Standard metropolitan statistical area
• County or district size
• Geographical changes of populations

Socioeconomic characteristics: Social class, lifestyle, cultural background, etc. These characteristics are essential elements of market segmentation, providing insights into the social and economic status of consumers. Here’s an overview of some key socioeconomic characteristics:

• Social Class: Social class is a hierarchical arrangement of individuals or groups within a society based on factors such as income, education, occupation, and lifestyle. Consumers from different social classes often exhibit distinct purchasing behaviours and preferences.
• Lifestyle: Lifestyle encompasses the way individuals live, including their activities, interests, opinions, and values. It influences consumer choices, preferences, and product usage. Lifestyle segmentation helps identify groups with similar patterns of living. 
• Cultural Background: Cultural background refers to the shared values, beliefs, customs, and traditions of a particular group or community. Understanding cultural backgrounds is crucial for tailoring marketing messages to resonate with diverse consumer groups. 
• Education Level: Education level reflects an individual’s level of formal education. It can influence consumer decision-making, preferences, and the types of products or services they are likely to engage with. 
• Occupation: Occupation indicates the type of work individuals are engaged in. Occupational segmentation helps identify professionals, blue-collar workers, entrepreneurs, etc., each with distinct needs and preferences. 
• Income: Income is a key socioeconomic factor that directly impacts purchasing power. Consumers with different income levels may have varying priorities, spending patterns, and preferences. 
• Family Structure: Family structure includes factors such as household composition, family size, and the roles of family members. These aspects influence buying decisions, with family-oriented marketing strategies targeting specific family structures. 
• Social Influence: Social influence refers to the impact of family, friends, and social networks on consumer behaviour. Understanding social influence helps in crafting marketing messages that resonate with interpersonal connections. 
• Values and Beliefs: Socioeconomic characteristics also encompass the values and beliefs held by individuals or groups. Aligning products or services with the values of target segments enhances market appeal. 
• Leisure Activities: Leisure activities, hobbies, and interests contribute to lifestyle patterns. Segmenting consumers based on their leisure activities helps tailor marketing strategies to specific recreational preferences. 
• Digital Engagement: The level of digital engagement, including internet usage, social media participation, and online shopping behaviour, is increasingly becoming a relevant socioeconomic characteristic in the modern era.

Psychographic characteristics: Values, attitudes, interests, personality traits, and lifestyle. Psychographic criteria are obviously more difficult to identify and calculate accurately. The psychological profile of the consumer is defined based on five main axes: a) Motives, b) Needs and Desires, c) Personality, d) Attutudes, and e) Lifestyle.

#1 Motives: Motives typically encompass both rational and emotional aspects:

• Functional Motives: Practical and utilitarian reasons behind consumer choices, such as the need for convenience, efficiency, or specific product features.
• Emotional Motives: Feelings and emotions that influence consumer behaviour, including the desire for pleasure, excitement, security, or social acceptance.
• Social Motives: Motivations arising from social interactions and relationships, such as the need for affiliation, recognition, or belonging.
• Personal Motives: Individual motivations related to personal values, self-expression, and self-improvement.
• Cultural and Psychological Motives: Motivations influenced by cultural norms, values, and psychological factors, including the desire for status, identity, or cultural alignment.

#2 Needs and Desires: A need is a basic requirement of the body, without which life cannot continue. Food, clothing, shelter, and health are examples of needs. On the contrary, desire refers to any non-necessary demand caused by the intended pleasure. Fun, education, and sociability are examples of desires.

I combine 3 theories to investigate needs and desires.

1. The Hierarchy of Needs is a psychological theory proposed by Abraham Maslow in the mid-20th century. Maslow’s hierarchy suggests that human needs can be organized into a pyramid, with the most fundamental needs at the base and higher-order needs at the top. Physiological, safety, belongingness and love, esteem, and self-actualisation.
2. The “Self-Determination Theory” (SDT) developed by Deci and Ryan posits that individuals have three innate psychological needs: autonomy, competence, and relatedness. It suggests that satisfying these needs leads to enhanced motivation and well-being.
3. The “Hierarchy of Effects” model is often used in marketing. It outlines the stages a consumer goes through in making a purchase decision, starting from awareness and ending with action. It has six stages: awareness, knowledge, liking, preference, conviction, and purchase. While it incorporates cognitive, affective, and behavioural components, it doesn’t focus explicitly on needs and desires but provides insights into the stages of consumer decision-making.

The integration of these 3 theories into a comprehensive list of needs and desires has significant implications for marketing:

Physiological Needs (Maslow):

• Health and well-being
• Basic nutrition and hydration
• Shelter and comfort
• Reproduction

Safety and Security (Maslow):

• Financial stability
• Job security
• Personal safety and protection
• Emotional security

Belongingness and Relatedness (Maslow, SDT):

• Family
• Social connections and relationships
• Community involvement
• Feeling part of a group or tribe
• Intimacy
• Trust
• Acceptance
• Love and affection

Esteem and Recognition (Maslow, SDT):

• Recognition and acknowledgement: status, fame, prestige, attention
• Achieving personal goals
• Developing competence and skills
• Strength, self-confidence

Autonomy and Control (SDT):

• Independence and freedom
• Control over life decisions
• Personal empowerment

Competence and Mastery (SDT):

• Opportunities for skill development
• Mastery in areas of interest
• Personal growth and learning

Aesthetic and Self-Actualization (Maslow, Hierarchy of Effects):

• Pursuit of beauty and aesthetics
• Creativity and self-expression
• Pursuing goals
• Fulfillment of personal potential
• Partner acquisition
• Parenting
• Talents and abilities

Cognitive and Information Needs (Hierarchy of Effects):

• Desire for knowledge and information
• Intellectual stimulation
• Cognitive engagement and curiosity
• Foresight

Emotional and Experiential Needs (Hierarchy of Effects):

• Emotional well-being
• Positive experiences and enjoyment
• Novelty and excitement

Transcendence/Spiritual Needs:

• Transcendence: The desire for personal growth, self-realization, and a connection to something beyond oneself. This could include spiritual or philosophical aspects.
• Meaning and Purpose: Seeking a sense of meaning and purpose in life, which can influence choices related to products, services, or experiences.
• Connection to Nature or Environment
• Philanthropy and Social Impact: The desire to contribute to a greater good or make a positive impact on society, aligning with a sense of transcendence.

This list encompasses a broad range of human needs and desires, integrating insights from various psychological theories. It can serve as a foundation for understanding and segmenting consumers based on their psychographic characteristics.

#3 Personality: Each person has their own personality which may differ in some or even several points from the personality of another. Personality is a complex concept and its characteristics (dimensions), based on which it can be studied and evaluated, are many. Leaving aside extreme cases (exceptions), we can study personality and draw valuable conclusions for marketing using the following dimensions:

• Masculinity, femininity
• Independence: It affects, among other things, clothing, food, entertainment, and the way one shops. Fashion and its acceptance or rejection are directly related to this dimension
• Achievement
• Anxiety, concern, nervousness
• Sociability
• Dominance
• Adaptability
• Aggressiveness: testing new products, negotiating prices, and demanding better service
• Seriousness
• Emotion control
• Openness to Experience: This trait reflects a person’s willingness to try new things, engage in novel experiences, and seek variety in life. It can influence preferences in areas such as travel, leisure activities, and product innovation.
• Conscientiousness: This trait pertains to an individual’s level of organization, responsibility, and attention to detail. It can influence preferences in products or services related to organization, reliability, and functionality.
• Optimism/Pessimism: Attitudes toward the future and outlook on life can affect consumer choices, especially in areas related to health, lifestyle, and long-term planning.
• Hedonism: The pursuit of pleasure and enjoyment can influence choices in entertainment, leisure activities, and products associated with enjoyment.
• Spirituality: Beyond transcendence, the specific spiritual beliefs or inclinations of individuals may play a role in their preferences and choices.

#4 Attitudes: Consumer attitudes encompass a wide range of beliefs, opinions, and evaluations that shape their perceptions and behaviours:

• Environmental consciousness: Attitude towards sustainability and eco-friendliness.
• Innovativeness: Attitude towards trying and adopting new products and technologies.
• Health consciousness: Attitude towards health and wellness, affecting choices in food, exercise, and lifestyle.
• Social responsibility: Attitude towards supporting socially responsible brands and initiatives.
• Risk aversion: Attitude towards avoiding uncertainty and preferring safe choices.
• Value for money: Attitude towards seeking the best value in terms of quality and price.
• Luxury Orientation: Attitude towards luxury goods and a willingness to pay premium prices.
• Convenience Preference: Attitude towards prioritizing convenience in product or service choices.
• Digital Adoption: Attitude towards embracing digital technologies and online interactions.
• Status Consciousness: Attitude towards products or brands that convey a certain social status.
• Cultural Affinity: Attitude towards products reflecting cultural preferences and traditions.
• Social Media Engagement: Attitude towards active participation and engagement on social media platforms.
• Influenceability: Attitude towards being influenced by advertisements, peers, or social trends.
• Experience Seeking: Attitude towards seeking new and unique experiences in consumption.

#5 Lifestyle: that is, what consumers do, how they live, and the trends they have for life. More specifically, lifestyle is studied based on the study of (AIO) activities, interests and opinions. By category, the above dimensions are based on specific measurable data:

Activities:

• Work
• Hobbies
• Social events
• Vacations
• Entertainment
• Clubs
• Community
• Shopping
• Sports

Interests: 

• Family
• Home
• Work
• Community
• Leisure
• Fashion
• Food
• Media
• Social networks
• Achievements

Opinions (for):

• Themselves
• Social issues
• Politics
• Business
• Finance
• Education
• Products
• Future
• Culture
• Technology
• Civilisation

This sequence follows a logical flow, starting with the underlying motivational factors (motives), progressing to the specific needs and desires, exploring personality traits, and finally, delving into the broader lifestyle aspects. It reflects a natural progression from internal motivations to external expressions, providing a comprehensive understanding of consumer psychographics.

IMPORTANT NOTE:

While there may be some overlap between psychographic and socioeconomic characteristics, they represent distinct dimensions of consumer segmentation. Socioeconomic characteristics typically focus on objective factors such as income, education, and occupation, while psychographics delve into subjective and psychological aspects like values, interests, and lifestyle.

Here’s a brief overview of the overlap and distinctions:

Overlapping Aspects:

• Activities and Lifestyle: While activities can be considered behavioural (psychographics), they also contribute to understanding the lifestyle, which encompasses broader patterns of behaviour, choices, and preferences. 
• Interests: Interests align closely with lifestyle and can be influenced by psychological factors, making them a bridge between psychographic and socioeconomic characteristics.

Distinct Aspects:

• Personality Dimensions: Personality traits are distinctly psychographic, providing insights into individual differences in behaviour and decision-making.
• Opinions: Opinions, especially on social issues, politics, and culture, are more attitudinal and psychological, reflecting the subjective perspectives of individuals.

While there is some interconnectedness, the psychographic category generally goes beyond the external and observable socioeconomic factors. Psychographics delve into the why and how of consumer behaviour, offering a more holistic understanding of their motivations and preferences.

Combining psychographic and socioeconomic segmentation can create a comprehensive framework for developing targeted marketing strategies that resonate with the complex nature of consumer identities.

Behavioural characteristics: Behavioural segmentation focuses on how consumers interact with a product or service, and their behaviour provides insights into their purchasing patterns, usage frequency, brand loyalty, and other aspects. In the context of behavioural segmentation, some key components include:

• Volume Usage: This refers to how often or how much a consumer uses a product or service. It can involve assessing the frequency of purchases, consumption, or engagement. For example, consumers may be categorized as light users, moderate users, or heavy users based on the volume of their usage. By considering “Volume Usage” as part of behavioural characteristics, we can tailor our marketing strategies to different user segments. For instance, heavy users might respond well to loyalty programs or bulk purchase discounts, while light users may be targeted with initiatives to increase usage frequency. Analyzing volume usage within behavioural segmentation enables us to understand and respond to the diverse behaviours of our consumer base.
• Usage Habits: How consumers use products, how frequently, and in what context are behavioural aspects that impact future purchasing decisions.
• Purchasing Behavior & Preferences: This encompasses how consumers behave when making purchasing decisions and their preferences for certain products, brands, or features.
• Purchasing History: Examining past purchasing behaviour provides insights into trends, brand loyalty, and the factors that influenced previous buying decisions.
• Purchase Reasoning & Drivers: Understanding the reasons behind purchases and the drivers that influence decision-making sheds light on the motivations of consumers.
• Purchase Frequency: This aspect of behaviour looks at how often consumers make a purchase. It helps identify patterns such as frequent buyers, occasional buyers, or seasonal buyers.
• Types of Products: The choice of products, whether essential or luxury and the specific categories consumers engage with are behavioural indicators.
• Brand Loyalty and Advocacy: Loyalty to a particular brand is a behavioural characteristic that indicates the likelihood of a consumer repeatedly choosing a specific brand over others.
• Loyalty Status: Categorizing consumers based on their loyalty to a brand or product. This could include loyal customers, occasional buyers, and switchers.
• Factors of Perception: Understanding how consumers perceive a product, brand, or industry based on their experiences and interactions provides insights into their behaviour and decision-making.
• Preferences: Consumer preferences, especially in terms of features, flavours, designs, or variants, are behavioural indicators that influence their choices and usage.
• Price Sensitivity: This refers to how responsive consumers are to changes in the price of a product or service. Price-sensitive consumers may be more influenced by discounts, promotions, or changes in pricing strategies. Conversely, consumers with low price sensitivity may be less influenced by price fluctuations. Their behaviour may be driven more by other factors such as brand loyalty, perceived quality, or specific product features. Understanding price sensitivity helps in setting competitive and attractive pricing strategies for different segments.
• Usage Occasion: Refers to the specific situations, occasions, or events when consumers choose to use a product or service, highlighting the context-driven nature of their consumption patterns.
• Benefit Expectations or Intended Benefits of Use: Understanding the specific benefits consumers seek from the product. It falls under the broader umbrella of understanding how consumers interact with a product or service and the anticipated outcomes or benefits they expect from their usage. This aspect provides insights into the motivations and goals that drive consumer behaviour. By assessing benefit expectations, we can tailor our marketing strategies to meet or exceed these anticipated benefits, thereby enhancing consumer satisfaction and loyalty.
• Readiness Stage: Assessing consumers’ readiness to make a purchase, whether they are in the awareness, consideration, or decision stage.
• User Status: Distinguishing between first-time buyers, repeat buyers, and potential buyers.
• Media Consumption: The channels consumers use to consume information, whether through traditional media, social media, or other platforms, influence their behaviour.
• Brand Interactions: Understanding how consumers engage with and perceive a brand, including their attitudes toward advertising and promotional activities.
• Interactions with Apps/Websites/Businesses: Consumer interactions with digital platforms and businesses, online or offline, provide valuable data on preferences and engagement.

By incorporating behavioural segmentation, we can enhance our understanding of how consumers interact with the market dynamically. This approach allows us to tailor marketing strategies based on the specific behaviours and preferences exhibited by different consumer segments.

#2 Industrial Markets

Firmographics: Firmographics are to B2B markets what demographics are to consumer markets. Firmographics refer to the characteristics and attributes that describe businesses or organizations rather than individual consumers.

• End-use: How the product or service is ultimately used by the industrial customer.
• Market size: The size of the target market, often categorized by revenue or other relevant metrics.
• Product specifications: Detailed specifications and requirements for the product or service.
• Industry: The industry in which the business operates or intends to target.
• Standard Industrial Classification (SIC) Code: A system for classifying industries based on specific activities.
• Company Size: Categorizing customers (businesses) based on their size, whether in terms of revenue, number of employees, market share, etc.
• Purchasing Power: Purchasing power refers to the financial capability and resources of organizations to buy goods and services, influencing their buying decisions and consumption patterns.
• Customer structure: Understanding the organizational structure of the customer, such as hierarchy and decision-making processes.
• Psychographic characteristics: Similar to consumer markets, understanding the values, attitudes, and culture of the industrial customer.
• Geographical factors: The location and geographic concentration of industrial customers.
• Financial Stability: The financial health and stability of the business, are often assessed through financial statements and indicators.
• Customer Base: The types of customers the business serves and the diversity of its customer base.
• Service Specialisation: Niche or general services.
• Client Focus: B2B (business to business), B2C (business to consumer),  B2G (business to government).
• Nature of services: professional services (consulting, legal, accounting), business services (marketing, IT, outsourcing), consumer services (healthcare, education, hospitality).
• Service Delivery Models: online, offline, hybrid.
• Customer Relationship Dynamics: long-term, project-based, and subscription-based services.
• Decision-Making Unit (DMU): The decision-making unit (DMU) or buying center comprises individuals within an organization, including the buyer, user, gatekeeper, influencer, and decider, who collectively participate in the purchasing decision process.
• Years in Operation: The length of time the business has been in operation.
• Strategic Goals: The business’s long-term objectives and strategic goals.

#3 Additional Criteria (Consumer & Industrial Markets)

Additional Criteria:

• Behavioural Loyalty: Loyalty that is exhibited through repeat purchases, long-term contracts, or consistent business relationships
• Technological Readiness: Assessing the technological readiness of customers, especially relevant in industries with rapidly evolving technologies.
• Regulatory Compliance: Considering the compliance requirements and regulatory environment that may affect customer needs.
• Risk Appetite: Assessing the level of risk tolerance among customers, especially important in B2B transactions.
• Innovation Adoption: Understanding how quickly and readily customers adopt new products, services, or technologies.
• Environmental Impact: Considering the environmental concerns and sustainability priorities of customers.
• Digital Readiness: Evaluating the level of digitalization and technology adoption among customers.
• Supply Chain Integration and Position: Assessing the degree of integration within the customer’s supply chain and the position of the business within the broader supply chain, including whether it is a supplier, manufacturer, or distributor.
• Customer Journey Stage: Recognizing where the customer is in their journey, from awareness to post-purchase engagement (see below, the “Symbiotic Odyssey” framework).
• Communication Preferences: Understanding how customers prefer to be communicated with, whether through traditional channels or digital platforms.
• Service Level Expectations: Assessing the expected level of service and support required by customers.

By considering these additional criteria, we can enhance the depth and specificity of our market segmentation strategies, tailoring our approaches to the unique characteristics and needs of our target audiences.

#4 Language (Consumer & Industrial Markets)

Language: The specific language, including keywords, idioms, and colloquial expressions that consumers use, can be a valuable criterion for market segmentation. This linguistic aspect is often referred to as “language preference” or “communication style,” and it can provide insights into the cultural and social context of different consumer segments. Here’s how it can be considered as a criterion:

• Cultural and Regional Preferences: Different regions and cultures may have distinct linguistic nuances. Understanding and using the language specific to a region or culture can be crucial for effective communication and resonating with the target audience.
• Generational Communication Styles: Different generations may use language differently. For example, millennials might use certain terms or expressions that are different from those used by baby boomers. Tailoring communication to the preferred language of specific generations can enhance engagement.
• Online and Digital Preferences: In the digital age, online platforms and social media have given rise to new language trends and expressions. Understanding the keywords and phrases commonly used in digital spaces can help in targeting audiences on these platforms.
• Industry-Specific Jargon: In B2B (business-to-business) markets, various industries often have their own set of jargon and technical terms. Adapting marketing language to align with the industry-specific language can enhance credibility and demonstrate industry expertise.
• Brand Affinity and Lifestyle Language: Certain brands and lifestyle choices are associated with specific linguistic styles. Identifying and incorporating the language that resonates with the target audience’s lifestyle and brand preferences can strengthen the brand-consumer connection.
• Emotional and Value-Driven Language: Consumers often respond to language that aligns with their emotions and values. Understanding the emotional triggers and values of different segments allows us to use language that deeply connects with our audience.
• Community and Niche Preferences: Within specific communities or niche markets, consumers may use language unique to their group. Recognizing and incorporating this language into marketing efforts can help establish a sense of community and authenticity.
• Consumer Reviews and Feedback Language: Analyzing the language consumers use in reviews and feedback provides valuable insights into their perceptions. This language can be leveraged to align marketing messages with consumer sentiments.

The concept of “language” doesn’t fit neatly into the categories previously discussed for market segmentation (e.g., demographic, psychographic, behavioural, etc.). Instead, it is a cross-cutting element that can influence and enhance various segmentation criteria. It can be considered as a dimension that overlays and interacts with other criteria, providing a nuanced understanding of consumer preferences and behaviour.

Understanding and utilizing the language preferences of different consumer segments is a nuanced way to tailor marketing communications. This criterion helps us not only speak the same language, literally and figuratively, as our audience but also fosters a sense of relatability and connection, which is essential for effective communication and engagement.

#5 Social, Interpersonal, and Situational Influences (Extra Layer) – (Consumer & Industrial Markets)

Social, Interpersonal, and Situational Influences:

1. Social influences: These relate to the impact of social groups, family, friends, and society on an individual’s behaviour, values, and attitudes. This aligns closely with psychographic factors, as it involves understanding how an individual’s preferences and choices are influenced by their social environment.
2. Interpersonal influences: This also falls within the realm of psychographics, specifically focusing on how personal relationships, social interactions, and communication patterns shape an individual’s behaviour and decision-making.
3. Situational influences: While situational factors may not neatly fit into psychographics, they are often considered under behavioural segmentation. Situational influences include factors such as the physical environment, time constraints, and specific circumstances that can impact consumer behaviour.

In my segmentation framework, social influences align with psychographic characteristics, while situational influences could be considered under behavioural characteristics. Interpersonal influences may span both psychographic and behavioural aspects, as they involve both individual attitudes and behaviours shaped by social interactions.

Social Influences:

• Culture: The set of shared values, beliefs, and practices that characterize a group or society.
• Subculture: Distinctive groups within a culture that share common values, but also have unique characteristics.
• Individual Culture: Personal preferences and behaviours that may deviate from broader cultural or subcultural norms.

Interpersonal Influences:

• Groups: Collective entities with shared interests or characteristics, influencing individual behaviour.
• Social Classes: Divisions within a society based on socioeconomic status, impacting lifestyle and consumption patterns.
• Reference Groups: Groups to which individuals compare themselves and seek guidance or approval.
• Family: The primary social unit influencing an individual’s values, attitudes, and buying decisions.
• Opinion Leaders: Individuals with significant influence over others’ opinions and decisions.

Situational Influences: Situations: Specific circumstances or events that affect consumer behaviour. Belk suggests 5 groups of circumstance characteristics:

• Physical surroundings: geographic location, place, decoration, sounds, music, perfumes, lighting, weather conditions, placement of goods and things inside stores, etc.
• Social surroundings: persons present during the decision-making process by the consumer or during the purchase and use of the product, the characteristics of these people, their obvious roles, as well as their interpersonal interactions
• Temporal perspective: The temporal dimension is a dimension of occasions, which can be specified in units ranging in time from a certain time of day during which we consume a product, to an entire season within the year. Time can also be measured in relation to a past event or a future event, such as the time elapsed since the last purchase of the product
• Task definition: includes the intention or requirement to select, or purchase a product, or even to obtain information related to a general or specific product purchase. It may even reflect different expected buyer or user roles. For example, a consumer who buys a small household electrical appliance as a wedding gift for a friend is in a different situation than when he buys a similar appliance for personal use
• Antecedent states: They are momentary moods, such as intense anxiety, pleasure, aggression, or excitement. They can also be momentary situations, eg cash available for shopping, tiredness, and feeling unwell. In other words, these are situations that apply temporarily or momentarily and not permanent situations, such as the characteristics of the person, and which immediately precede the current behaviour of the consumer. They might be mood, issues, problems, and specific concerns.

Situations encompass a broader context that includes the immediate environment and specific events affecting behaviour.

Overlap Explanation:

Adding a dedicated category for social, interpersonal, and situational influences aligns with the complexity of consumer behaviour and contributes to a more holistic segmentation approach.

This extra layer encapsulates aspects of consumer behaviour that are shaped by external factors beyond individual characteristics. Here’s a brief explanation of the potential overlaps with other segmentation categories:

• Demographic: Social influences, such as family structures and cultural backgrounds, can impact demographic factors. For example, cultural values may influence preferences related to age or gender-specific products.
• Geographic: Situational influences can vary based on geographic location. Local customs, traditions, and environmental factors may impact consumer behaviour in specific regions.
• Socioeconomic: Social class is included in socioeconomic characteristics, but the extra category delves deeper into social and interpersonal aspects that contribute to socioeconomic status. For instance, social networks and group affiliations can influence purchasing decisions.
• Psychographic: Lifestyle factors are part of psychographic segmentation, and they can be influenced by social and situational factors. Social and interpersonal influences contribute to shaping individuals’ values, attitudes, and opinions.
• Behavioural: Groups and reference groups, which fall under social influences, contribute to behavioural patterns. Consumer behaviours are often influenced by social norms and interactions.
• Firmographics: In B2B contexts, organizational culture and group dynamics within companies can be influenced by social and interpersonal factors. These factors may impact decision-making processes.
• Language: Language can be influenced by cultural and social factors. Different social groups may have unique linguistic nuances and preferences.

By creating this dedicated category, we acknowledge that consumer behaviour is a complex interplay of various factors, and the overlaps highlight the interconnected nature of these influences. It emphasizes that segmentation should not be seen in isolation but as an integrated understanding of the multifaceted aspects shaping consumer choices.

Plus, elements like occupation, income, and education level often appear in both demographic and socioeconomic characteristics because they provide insights into both the individual’s personal attributes (demographic) and their economic status and social position (socioeconomic).

Here’s how we address this overlap:

• Cross-Reference and Consistency: We ensure that these overlapping elements are cross-referenced and consistent between demographic and socioeconomic data. This helps maintain accuracy and avoids discrepancies in the analysis.
• Prioritize Dominant Categories: We identify which category (demographic or socioeconomic) has more relevance or dominance in our specific context. For instance, if income is a stronger indicator of our target audience, we might emphasize it more in the socioeconomic category.
• Flexibility in Analysis: We allow for flexibility in our analysis. We recognize that some elements may play a dual role and can be valuable in understanding different aspects of our target audience.
• Detailed Consumer Profiles (Customer Avatars – see below in the section “Targeting”): When creating consumer profiles, we consider including elements from both categories but emphasize the context in which each element is relevant.
• Continuous Refinement: Market segmentation is an iterative process. We are open to refining the segmentation model based on a brand’s specific goals and needs, and on feedback, market changes, and ongoing analysis.

Ultimately, the key is to maintain clarity, consistency, and relevance in our segmentation approach while recognizing that certain elements may naturally bridge multiple categories.

#6 Global Markets

To capture the nuances of global market segmentation, we consider the following criteria:

Cultural Diversity:

• Language preferences
• Cultural values and norms
• Consumer behaviours influenced by cultural factors

Geopolitical Considerations:

• Regional political stability
• Trade agreements and alliances
• Regulatory frameworks

Economic Variables:

• Currency considerations
• Economic development levels
• Purchasing power parity

Market Entry Readiness:

• Market entry barriers
• Local competition landscape
• Technological infrastructure

Global Consumer Segmentation:

• Global consumer demographics
• Psychographic characteristics on a global scale
• Behavioural patterns in a cross-cultural context

Digital Presence and Accessibility:

• Online behaviours and preferences
• Digital adoption rates
• Social media usage and trends 

Supply Chain Dynamics:

• Global supply chain logistics
• Sourcing and distribution considerations
• Supply chain resilience and adaptability

Sustainability and Ethical Practices:

• Global sustainability standards
• Corporate social responsibility on a global scale
• Consumer preferences for eco-friendly and ethical products

Global Market Trends:

• Emerging markets and growth regions
• Shifting consumer trends on a global scale
• Innovation and technology adoption worldwide

Legal and Compliance Frameworks:

• International trade laws and regulations
• Compliance with global standards
• Intellectual property protection globally

Cross-Border Marketing Strategies:

• Tailoring marketing messages for diverse audiences
• Cross-cultural marketing campaigns
• Global brand positioning and perception

Risk Management in Global Context:

• Currency risk management
• Political and geopolitical risk assessment
• Crisis preparedness and response strategies

Adding these criteria provides a robust foundation for businesses looking to segment and target audiences in the dynamic landscape of global markets. It reflects the multifaceted nature of operating on a global scale and aligns with the DMDES model’s comprehensive approach to market segmentation.