Innovative Approaches to Market Segmentation Using AI in Emerging Economies

Abstract

This chapter explores innovative approaches to market segmentation using artificial intelligence (AI) in emerging economies. Traditional market segmentation techniques often fall short in dynamic and rapidly evolving markets, where diverse consumer behaviors and limited data availability pose significant challenges. AI, with its advanced data processing and pattern recognition capabilities, offers new possibilities for more accurate and actionable market segmentation. In emerging economies, AI-driven segmentation can harness big data from various sources, including social media, mobile usage, and transactional data to identify and understand distinct consumer segments. Machine learning algorithms can analyze these vast datasets to uncover hidden patterns and predict future consumer behaviors, enabling businesses to tailor their marketing strategies effectively. The chapter highlights case studies where AI has been successfully implemented for market segmentation in emerging markets, demonstrating improvements in targeting accuracy, customer engagement, and overall marketing efficiency.