Part 2. MM4XL Tools > 2. Analytical Tools > Segmentation Tree > Anatomy of a Segmentation Tree Report > The Tree

Segmentation Tree

The Tree

A tree like the one below is the pictorial representation resulting of the segmentation. The example below refers to an exercise made for a company investigating buyers of vitamins for European households (active variable).

The tree below shows 4 levels, although the original tree detected a fifth level not shown in the example, and it accounts for 4 passive variables: gender, area, teens, and age. Each level is split in branches, and the main information concerning the branch is stored in the squared boxes (leaves), which represent the final groups. To illustrate this example we found:

  1. Gender is the most highly related variable to the purchase of vitamins for the household. Out of a total of 361 (36.1% of 1017) buyers 252 women (40.1% of 628 surveyed women) bought vitamins, while only 109 (28.8% of 392 surveyed men) buyers were men. The Area where people live is the second most highly related variable to the purchase of vitamins.
  2. The left side of the tree shows a large group of 158 women buyers, living in cities, with 2 or more kids. An analogous situation is shown on the right side with males, from the city, aged below 45. Large groups are often in the target of the manager because they can be addressed with communication activities.
  3. The situation changes in the countryside where women and men split according to their age and the number of children at home, respectively. This happens at the forth level and we still see groups of appreciable size. When the split produces to small groups the analysis must be handled with caution.

 Marketing Segmentation Tree Diagram Chart Software

The tree is made of single elements grouped together. If you want to modify the shapes, right-click with the mouse on the tree and select Grouping Ungroup, and you will be allowed to modify them. If you only want to change some text in the boxes, click on one box and enter and format text as you like. As with any other Microsoft office shape you can copy and paste the tree between applications such as Word and Power Point.

The next section explains how the single elements of the box are found.

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