Macro Segmentation

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Definition: Macro Segmentation

Macro Segmentation is when the market is classified or segmented based on variables with broader scope such as industry and organizational variables. It can also include variables such as the location, which is an important variable to learn about the communication requirements and the culture. (Organizational characteristics would include variables such as demographics, product applications, and end-use markets).


Macro and Micro segmentation are two different methods of segmentation, which is the process of dividing the entire market into different groups on the basis of different variables.


Variables such as the organizational size would help estimate the buying process and buying size of these organizations, and other variables like the industry largely determines what these organizations would buy.


Macro segmentation is always broader in scope than micro segmentation, which focuses the target on a small customer base.


Micro segmentation, however, employs other variables as the basis of classification, and these are generally customer oriented variables such as customer experience and benefits. Micro segmentation and micro segmentation are two terms which stem from the two stage market segmentation model which was suggested by Yoram Wind and Richard Cardozo. This model is very commonly used in the industry today.

For example, after segmentation of the industry based on location has been done, a company may choose to adopt different advertising strategies in different countries.

 

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