Market segmentation: What it is?
Any company of any size must apply the different marketing strategies that will lead the way to achieve their objectives.We can define many marketing strategies both in the physical media, as in the digital media but do you want to talk about applying strategies off and online in your company?
It doesn’t matter which ones you want to apply because without an adequate market segmentation, it doesn’t make sense to start any.
All people are different from each other, because each of us has our own tastes, concerns, needs, problems, etc. …
What is market segmentation?
The market is very large and consists of many different consumers with very different wishes and needs.Companies cannot think that they have the capacity to serve the whole market effectively and to address millions of consumers offering their product or service without distinction, it does not make any sense.
That is why it is essential to know what market segmentation is, because it is a basic marketing concept that must be carried out in any company of any size and sector.
What is a segment and segment a market
If the market segmentation is to make groups or what are called segments, it will be necessary to know exactly what a market segment is.A market segment is a homogeneous, broad and identifiable group of consumers with common characteristics and needs. And they are going to react in the same way to the marketing actions carried out by our company.
The segment or group of consumers has very similar characteristics such as living in the same geographical area, being of the same gender, having the same purchasing power or the same purchasing habit among many others that I will explain.Therefore, for a company to segment a market means identifying and analysing the groups of consumers who may be interested in its product or service.
Differences between market segment and target market
Once we are clear about the segment we need to target, the next step is to find out within that group who our buyers are.So that you understand it well, let’s imagine that we are footwear manufacturers and we are looking for who could be the ideal client for a new model of running sneakers that we want to launch.
The target market is our ideal client, it is the target audience to whom we are addressing and our service or product is intended and the reason why we must direct our efforts to define it and find it through segmentation.
Characteristics of market segmentation :
The size of each segment must be measurable, because if we don’t know the volume of the segment, how do we know how many people we are addressing?
The segment I’m targeting must be large enough for us to be profitable, otherwise it doesn’t make sense to target it.
The segment must be distinguishable, i.e. have clearly differentiated common characteristics.
We must be able to serve the segment effectively, covering the resources that allow us to meet their needs.
To this segment we will be able to apply the strategies and actions that attract it in the most effective way.
Objectives of market segmentation:
- Identify our group of customers with similar characteristics so that we can adapt our product as much as possible to what they are really demanding.
- To know in depth who our target audience is and what they are really interested in in order to be able to focus on them.
- Reach our customers more effectively through all the marketing and sales actions we set in motion.
Advantages of market segmentation:
- Personalized products and services
Knowing exactly who your client is and what it’s like will help you satisfy their specific needs by offering them a personalised product or service, which will make them more loyal to your brand.
- Use of resources
Knowing what your target audience is interested in and what their needs are is going to make it easier for you to focus the creation of marketing and sales strategies and actions on that audience and it will mean greater profitability and use of the resources you allocate.
- Optimization of the brand positioning strategy
This strategy is fundamental in our company, it must be well defined to know how our segment will remind us of the competition.
The brand positioning strategy is as important as making a good market segmentation, so if you have doubts about it and need to deepen I advise you to visit this post of brand positioning school marketing and web.
- Refine and hit the 4 p’s target of the marketing mix
You will have the most appropriate product or service for that segment, with the price adjusted to their needs, you will know which are the distribution channels where they will go to look for it and it will be simpler how you can communicate with it, which can clearly translate into a greater number of sales.
- New market niches
Market segmentation also makes it easier for you to find new market niches, discover new business opportunities in segments that have not yet been covered by any company, resulting in more and new customers.
- Competition analysis
We have an obligation to know better the product and strategies of our competitors, and that gives us the opportunity to use the data we collect to better tailor our existing products or services.
- Achieve the objectives of digital marketing
If you have not yet implemented the digital marketing strategies that will make you succeed on the Internet and you are thinking that you can not miss this opportunity offered by the Internet, one of the first steps will be to devote time to make a good market segmentation.
Types of market segmentation
There are different segmentation variables, some based on the consumer’s own characteristics and others based on their responses to the product or service.
The most commonly used types of market segmentation are:
- Geographic segmentation
- Demographic segmentation
- Psychographic segmentation
- Segmentation based on behavior
Why it is so important to carry out a market segmentation?
Market segmentation is so important, think that the more defined is your client and potential client, the more you will be able to personalize and the more effective will be all the strategies and actions that you implement in both digital and offline media. Strategies and actions to sell more there are many but if you do not know exactly who they are aimed at the only thing you will do is throw your efforts.