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Updated Jan 03, 2024

Trends That Will Shape Market Segmentation in 2024

Learn how these five market segmentation trends will help your business compete.

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Sean Peek, Senior Analyst & Expert on Business Ownership
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Even those who are true innovators at heart need to see how dynamically market segmentation changes. As we venture further into the future, there are constantly new factors at play, be it disruptive technologies, big data or the ever-growing consumer demands. Learning how to build your segmentation strategy around these factors is what defines the leaders of tomorrow — while the others are left behind.

Here are the top five market segmentation trends that will help your business stay ahead of the curve.

The importance of market segmentation

Market segmentation helps companies plan campaigns and execute advertisements by breaking down larger groups into smaller segments, allowing the company to focus on certain customer groups rather than targeting everyone in the market. Segmenting the market also allows companies to create products that better suit their audiences’ needs. While analyzing a specific group within the marketing scene, segmentation may reveal other areas or groups of people your company has not yet targeted, potentially boosting business. 

If a company attempts to broaden its horizons and try to sell anything to everyone, more likely than not, the broad generalizations won’t make an impact in any market. Companies miss out on opportunities if they do not have a specialized, customizable product or service. Market segmentation can help guide the business toward making important decisions regarding the path of the product to the customer, whether it is price, design or distribution. For example, if a company’s target audience prefers to shop online, a company can choose to offer its products in an online store, appeasing market customers. Income levels, demographics and geographical data are other important factors that may influence business decisions. 

Additional reporting by Anthony Lamot.

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Sean Peek, Senior Analyst & Expert on Business Ownership
Sean Peek co-founded and self-funded a small business that's grown to include more than a dozen dedicated team members. Over the years, he's become adept at navigating the intricacies of bootstrapping a new business, overseeing day-to-day operations, utilizing process automation to increase efficiencies and cut costs, and leading a small workforce. This journey has afforded him a profound understanding of the B2B landscape and the critical challenges business owners face as they start and grow their enterprises today. In addition to running his own business, Peek shares his firsthand experiences and vast knowledge to support fellow entrepreneurs, offering guidance on everything from business software to marketing strategies to HR management. In fact, his expertise has been featured in Entrepreneur, Inc. and Forbes and with the U.S. Chamber of Commerce.
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