Investor Deck
Market Segmentation
Market segmentation involves dividing a broad target market into subsets of consumers who have common needs, behaviors, or characteristics. It allows a company to target specific groups more effectively.
SECTION
Market Analysis (Very Important)
IMPORTANCE
8
/10
Understanding and detailing market segmentation helps investors see how the startup plans to approach and capture different segments of the market. It demonstrates strategic thinking and a focused approach to marketing and sales.
WHAT SHOULD BE INCLUDED:
Types of Segments: Break down the market into manageable segments such as demographic, geographic, psychographic, and behavioral segments.
Segment Characteristics: Describe the specific characteristics, needs, and preferences of each segment.
Size of Each Segment: Provide estimates of the size and potential value of each market segment.
Targeted Approach for Each Segment: Outline how your product or marketing strategy will be tailored to the needs of each specific segment.
TIPS
Data-Driven Insight: Use data to support your segmentation, ensuring that each segment is large enough to target effectively.
Clear and Concise Visualization: Use diagrams or tables to present the segmentation clearly, helping to visualize how each segment fits within the overall market.
Alignment with Product Features: Demonstrate how specific features of your product serve the needs of different segments, providing clear examples or scenarios.
EXAMPLES
Nike: Nike segments its market by sport (running, basketball, etc.), gender, and age groups. They tailor products and marketing strategies to each segment, like offering running shoes for serious athletes vs. casual wearers.
Apple: Apple segments its market by product usage (personal, business, education) and by consumer tech familiarity (tech-savvy, beginners). Products like iPads are marketed differently to schools versus business professionals.
Coca-Cola: Coca-Cola uses geographic and demographic segmentation to tailor its products and marketing campaigns to local tastes and preferences, which can vary widely from one region to another.