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Conversion Optimization by Ayat Shukairy, Khalid Saleh

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Market Segmentation Versus Persona Development

Many clients are a little confused when we first present the concept of personas to them. They tend to think of persona development as market segmentation. It is important to distinguish between the two. Although persona creation relies heavily on market segmentation, segmentation is just one part of what a persona requires. Personas created for online selling processes focus more heavily on online behavior and usability trends. Market segmentation is the division of the market or population into subgroups with similar motivations.

Widely used bases for segmenting business-to-consumer (B2C) markets include the following factors:

  • Geographic factors:

    • Region

    • Size of metropolitan area

    • Population density

    • Climate (for industries impacted by it, such as heating, cooling, and sporting goods)

  • Demographic factors:

    • Age

    • Gender

    • Family size

    • Generation

    • Income level

    • Occupation

    • Education

    • Ethnicity

    • Religion

  • Psychographic factors:

    • Lifestyle

    • Activities

    • Interests

    • Hobbies

    • Opinions

    • Attitudes

    • Values

    • Social responsibility

    • Forms of entertainment

  • Behavioral factors:

    • Benefits sought

    • Usage rate

    • Brand loyalty

    • User status (potential, first-time, regular)

    • Readiness to buy

    • Occasions that stimulate purchases

Widely used bases for segmenting business-to-business (B2B) markets include the following:

  • Location

  • Company type:

    • Company size

    • Industry

    • Purchase criteria

    • Psychographics

    • Business style

    • Business stage

    • Employee relations

    • Social responsibility

    • Workforce type

  • Behavioral characteristics:

    • Usage rate

    • Buying status

    • Purchase ...

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