No two attitudes are alike! Because of this, identifying and evaluating your market segments can guarantee that you will be successful in your marketing efforts. As the markets shift and environments evolve, what used to be considered a mass market has now become a highly segmented, fragmented market. Because of this, segment marketing will become more and more popular.
Market segmentation is the process of grouping customers within a marketing, according to their similar needs, wants, and attitudes. It allows you to focus your resources on the most promising opportunities or the “target markets” you want to pursue, that will provide best ROI.
- Select the Market
- Apply the Variables, ie…age, income, gender demographics
- Assess and Select the promising Targets
On you select your targets:
- Determine what markets to enter
- Prioritize segments according to the resources needed to enter
- Plan a coverage strategy
The purpose of segmentation is to form groups of customers who are similar enough in certain areas and sufficient enough to form a market. See you next time as we discuss specific market variables, and how being specific as possible will contribute to your marketing success!
Market segmentation is an essential element to any business success. By identifying which customers your product or service will serve, you create a value proposition that will meet your customers need, as well as communicate the product’s value.
Improving segmentation allows marketers to focus their resources toward the most promising opportunities. Additionally, it will increase conversion rates; improves your return on investment, and reduces the waste of time and expenses.Segments are defined through a variety of variables. The following are few factors to consider as you improve your market segment, as well as define your target markets and customers.
Segmentation improves marketing efficiency and effectiveness. It allows companies to find new customers in new markets based on:
- Geography(Where do they live, work, or play)
- Industry Sector -(NAICS Code)
- Company size(1-10 Employees)
- Decision-maker roles and levels(Business Diversity Officer)
- Products or Services currently used-(IOS vs. Android users)
Behavioral segmentation are in some cases considered the best way to find a consumer group. This is primarily due to the variables that allow marketers to analyze specific data and get information about consumers. When considering behavioral data, think about your customers:
- Pain – customers may have different problems, issues, fears, buying triggers and so on. Understanding this can help you and your marketing in many ways, from what topics and messages you put in marketing headlines, direct mail copy,adverts, blog articles, and much more.
- Aspirations – what hopes, dreams, ambitions, change and goals do your potential buyers wish to satisfy? Identifying and engaging with the buyer helps align the marketing messages that you create and use to engage the customer and eventually close the sale.
- Information sources used – where do your buyers go to investigate the need that you can satisfy? They may go online to forums and discussion groups, to trade events and conferences, to advisers and trade associations, to company websites, or probably a mix of them all.
Market segmentation and Customer Definition
Defining your ‘ideal’ customer based on a mix of the customer market and behavior segmentation can give you very useful customer data.
Identify Multiple Niches
Identifying several niches, along with outline forecasts for revenue potential and marketing and sales expenditure will help you in short-listing the more attractive segments.