Segmenting the Spa Market

Market segmentation is the roadmap towards the definition of target markets—defined as those market segments you will target to come in your doors. A market segment is a group of your industry's customers who share a set of common characteristics that distinguish them from other customers. This analysis is then used to determine market potential--the total demand for a product in a given environment.


Segments vary according to geographic location, demographics, and psycho-graphics, and different marketing approaches are usually required to reach each target segment. The four generic segmentation strategies are listed below.




Information on geographic segmentation is derived from your environmental analysis. Segmenting the market based on geographic location is effective because "birds of a feather flock together." People choose to live amongst their peers, and therefore if you can define the characteristics of a neighborhood the chances are better of understanding the psyches of the individuals inhabiting the neighborhood.



  • region
  • county size
  • city size
  • density




Demographics are the fundamental characteristics used to assess market segments and measure psycho-graphics. Whereas geographic segmentation asks "where are the customers?" demographic and psycho-graphic segmentation ask "who are the customers?"



  • age
  • sex
  • family size and status
  • income
  • education and occupation
  • religion or culture
  • social class




Psycho-graphic segmentation creates a complete profile of your market's values, attitudes, product purchase behaviors and lifestyle preferences. For example: "Women between ages 35-45 with combined income over $50,000 is now extended to "Women between ages 35-45 with combined income over $50,000 who purchase health products and beauty magazines, and organic food.



  • life style/attitudes
  • personality
  • purchase habits-- what and how they buy
  • benefits sought
  • usage rate and loyalty
  • price sensitivity  ("elastic" or "inelastic")



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