What Should be Included in a Segment Profile?

What is a Segment Profile?

A segment profile is a descriptive summary of the size, needs, behaviors and preferences of consumers within a particular market segment, with the goal of evaluating segment attractiveness and developing suitable marketing strategies.


Connect the word ‘profile’ to a criminal profiler that we see on TV crime shows – they develop a description (a profile) of a suspect – in marketing we develop a profile of consumers.

What Should be included in a Segment Profile?

Main Consumer Needs

These needs can range from basic functional requirements, such as durability in products, to more complex emotional needs, like the desire for status or belonging.

For example, in the tech industry, while some consumers prioritize advanced features, others might seek user-friendliness.

Usage Level

Analyzing how frequently consumers use a product can vary widely across segments; some might use a product daily, while others only occasionally.

Level of Brand Loyalty

Brand loyalty, the extent to which consumers are committed to a brand, varies within segments. Some consumers are die-hard fans of certain brands, while others easily switch brands based on price or features.

Price Sensitivity

Price sensitivity is the degree to which the price affects purchasing decisions.  In some segments, a small price change can significantly impact sales, while in others, the price might be a less critical factor.

For price-sensitive segments, competitive pricing or value-for-money offerings can be more effective. Conversely, less price-sensitive segments might respond better to premium pricing strategies that align with a high-quality or luxury brand image.

Product Involvement Levels

Product involvement levels refer to how deeply consumers engage with the purchase process.

High involvement purchases, like cars or real estate, require considerable research and decision-making, while low involvement purchases, like everyday groceries, are made more spontaneously.

Retailer Preferences

Identifying preferred retail channels within a segment enables businesses to optimize distribution and channel strategies.

Some consumers prefer online shopping for its convenience and variety, while others favor in-store experiences for the tactile interaction with products.

For instance, an online-focused segment might appreciate virtual try-on features or AI-driven recommendations, whereas an in-store focused segment might value knowledgeable staff and in-store events.

Demographic Factors

Demographics such as age, gender, income, education, and family size are fundamental in segment profiling. These factors help in identifying who the customers are and their basic characteristics.

For instance, products targeting millennials might focus on technology and innovation, while products for older demographics might emphasize comfort and ease of use.

Geographic Factors

Geographic location includes not just the physical location but also the urban, suburban, or rural setting. Geographic factors influence consumer preferences and purchasing habits significantly.

For example, urban customers might have different needs and accessibility to products compared to rural customers.

Psychographic Factors

This involves understanding the psychological attributes of a segment, including lifestyle, values, attitudes, and interests. Psychographic profiling helps in understanding why certain consumers behave the way they do.

It’s about the mindset of the consumers and how it affects their purchasing decisions. For instance, a segment with a strong value for sustainability would respond better to eco-friendly products.

Behavioral Factors

Behavioral aspects focus on the consumer’s relationship with the product or service. This includes usage rate, benefits sought, brand loyalty, and readiness to purchase.

For example, frequent users of a product might be targeted for loyalty programs, while occasional users might need more engagement and awareness strategies.

Economic Factors

The economic status of a market segment can determine its purchasing power. Economic factors such as disposable income and economic stability influence consumer buying power and preferences.

Technological Factors

Understanding a segment’s technological access and preferences includes their use of digital platforms, mobile devices, and online shopping behaviors. For technology-savvy segments, digital marketing and online sales channels might be more effective.

Segment Size 
Understanding and quantifying the size of a segment involves estimating the number of potential customers within a specific market segment. This number should be a clear indicator of a segment’s viability and potential profitability.

Segment Growth Rate

A solid growth rate suggests a market segment with opportunities for new entrants and expansion for existing players. It signals consumer interest and market vitality, often correlating with emerging trends or shifts in consumer preferences.

A declining growth rate can indicate market saturation, shifting consumer tastes, or increased competitive pressure.

Proportion of the Overall Market

This measures the segment’s size relative to the total market. A substantial market proportion denotes a dominant segment, often associated with stable revenue streams but also intense competition.

A smaller proportion might suggest a niche or emerging market with room for growth and less competitive intensity.

Main Competitive Offerings 

This competitor analysis should not just focus on the product features or services offered, but also on the value proposition, pricing strategies, and customer experiences provided by these competitors.

Understanding the strengths and weaknesses of these competitive offerings is key. This insight can reveal opportunities for differentiation, whether through enhanced features, superior quality, or more attractive pricing.

Main Media Choices

Identifying the main media choices of a market segment is about understanding where and how the target customers consume information and entertainment. This encompasses traditional media such as television, radio, and print, as well as digital channels like social media, online forums, and websites.

Understanding media consumption patterns helps in making informed decisions about where to allocate advertising and marketing efforts. It’s not just about where ads are placed, but also how the messaging is tailored to fit different media platforms.

Loyalty and Retention Factors

What factors contribute to loyalty and long-term retention within the segment = helpful for developing effective customer relationship management strategies.

Lifetime Value Potential

Estimation of the lifetime value of customers within the segment to inform investment and long-term engagement strategies.

Scroll to Top