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!