Microsegmentation is a marketing process that uses techniques such as data mining,

artificial intelligence Artificial intelligence (AI) is intelligence—perceiving, synthesizing, and inferring information—demonstrated by machines, as opposed to intelligence displayed by animals and humans. Example tasks in which this is done include speech r ...

, and

algorithm In mathematics and computer science, an algorithm () is a finite sequence of rigorous instructions, typically used to solve a class of specific problems or to perform a computation. Algorithms are used as specifications for performing ...

s to recognize and predict minute consumer spending and behavioral patterns. The collected information is used to help marketers identify extremely precise

microsegments In marketing, a microsegment is a more advanced form of market segmentation that groups a number of customers of the business into specific segments based on various factors including behavioral predictions. Once identified, microsegments can beco ...

(down to the individual consumer level).

Microsegment In marketing, a microsegment is a more advanced form of market segmentation that groups a number of customers of the business into specific segments based on various factors including behavioral predictions. Once identified, microsegments can become ...

s can then be the focus of personalized direct

micromarketing Micromarketing was first referred to in the UK marketing press in November 1988 in respect of the application of geodemographics to consumer marketing. The subject of micromarketing was developed further in an article in February 1990, which emph ...

and micropromotion campaigns. This form of

considers that each consumer has different ideas and feelings about a company’s products, services, prices, and promotions, and sets out to recognize these differences and respond to them in an appropriate manner.

References

Market segmentation {{business-stub