Market Segmentation!

To reach customers with a marketing message or ad campaign, targeting the right audiences for any business is one of the most important aspects.

Sometimes, business message might reach only few people who end up becoming customers only and also to few people who aren’t interested in same.When messaging or spreading awareness isn’t optimized for audiences, businesses usually end up with a lot of wasted advertising budget.

Market segmentation here helps businesses to target just the people most likely to become satisfied customers of the company. To segment a market, splitting it up into groups that have similar characteristics is the option anytime.

Market segmentation in short, organizes customers or business base along demographic, geographic, behavioral, or psychographic lines—or say a whole combination of all of them.

Market segmentation is the process of dividing a target market into smaller, more defined categories. It segments customers and audiences into groups that share similar characteristics such as demographics, interests, needs etc.Using different types of market segmentation allows business to target customers based unique characteristics, create more effective marketing campaigns, and find opportunities in the market all at a time.

This helps businesses to design and execute better marketing strategies from top to bottom.

Those important factors of Market Segmentation -

When any business knows with whom it is talking to, It develops stronger marketing messages by avoiding and ignoring generic, vague language that speaks to a broad audience. Instead, business prefers direct messaging that speaks to the needs, wants, and unique characteristics of audiences.

With dozens of marketing tactics available, it can be difficult to know what will attract the targeted audience.

Using different types of market segmentation guides company towards the marketing strategies that will work best.When the audience business is targeting, it can determine the best solutions and methods for reaching them.

On digital ad services, business targets audiences by their age, location, purchasing habits, interests, and more and when any business use market segmentation to define audience, know these detailed characteristics and can use them to create more effective, targeted digital ad campaigns.

When marketing messages are clear, direct, and targeted they always attract the right people.

Businesses draw ideal prospects and are more likely to convert potential customers into buyers.

Being more specific about the value propositions and messaging also allows business to stand out from competitors.

Instead of blending in with other brands, it can differentiate specified brand by focusing on specific customer needs and characteristics.

Business already knows what customers want and need, and with the help of Market Segmentation it can deliver and communicate offerings that uniquely serve and resonate with them Click & Tweet! . This distinct value and messaging leads to stronger bonds between brands and customers and creates lasting brand affinity.

Niche marketing is the process of identifying segments of industries and verticals that have a large audience that can be served in new ways.

When business segment their target market, it can find underserved niche markets that can develop new products and services for.

Targeting in marketing keeps business messaging and marketing objectives on track. It helps you identify new marketing opportunities and avoid distractions that will lead business away from target

Despite the well‐documented benefits which segmentation offers, businesses continue to encounter implementation difficulties. This raises concerns about the cause of these problems and how they might be overcome. These concerns are addressed in this paper in the form of three questions: Is segmentation a good idea? If segmentation is such a good idea, why does it sometimes fail? What can be done to reduce the chance of failure? A mix of published evidence and case examples is used to explore these questions. The paper concludes by suggesting that if marketers are to overcome their segmentation implementation difficulties, they need practical guidance at three stages in the segmentation process. Before the project begins they must understand the role of success factors contributing to a successful result. During the segmentation project the qualities of the emerging segments must be clarified. After segmentation is complete the question of segment attractiveness must be considered. There is currently a gulf between the priorities of academics and practitioners carrying out segmentation. If this is to be bridged, further research is needed to provide guidance on segmentation success factors.

Demographic Segmentation

Demographic segmentation is one of the most popular and commonly used types of market segmentation. It refers to statistical data about a group of people.

Examples

Where the above examples are helpful for segmenting B2C audiences, a business might use the following to classify a B2B audience:

Because demographic information is statistical and factual, it is usually relatively easy to uncover using various sites for market research.

Psychographic Segmentation

Psychographic segmentation categorizes audiences and customers by factors that relate to their personalities and characteristics.

Examples

Psychographic segmentation factors are slightly more difficult to identify than demographics because they are subjective. They are not data-focused and require research to uncover and understand.

While demographic and psychographic segmentation focus on who a customer is, behavioral segmentation focuses on how the customer acts.

Geographic segmentation is the simplest type of market segmentation. It categorizes customers based on geographic borders.

Geographic segmentation can refer to a defined geographic boundary (such as a city or ZIP code) or type of area (such as the size of city or type of climate).