# Segmentation analysis

Source: https://projectalevel.co.uk/business_studies/marketing/segmentation_analysis

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Segmentation analysis is a way of dividing up a market to identify trends in it. Segmentation analysis is used to create a profile of the target market. The following can be taken into account when segmenting a market:

- Age,
- Gender,
- Class,
- Income,
- Location,
- Hobbies.

This information can help the company a lot with its marketing efforts. It can be used to set quotas on a market research exercise or be used to decide what promotional method is most appropriate for the market.

In general, the following are advantages of segmentation:

- More efficient use is made of marketing resources - less waste.
- A competitive advantage can be gained in a particular part of a market.
- It's beneficial for small firms as uses less resources.
- Products can be modified to be exactly what the consumer wants.
- Marketing mix can be more targeted.

The following are disadvantages of segmentation:

- Increased costs to develop variations of the product.
- Higher stock holding costs.
- Higher advertising and other costs.