Market Segmentation
Market Segmentation: The technique of market segmentation divides the target market into smaller groups based on shared features like age, income, personality traits, behavior, interests, needs, or location.
These categories can be utilized to enhance sales, marketing, and other related activities.
Due to segmentation, brands can develop strategies for various consumer types based on how they view the overall value of various goods and services. They can introduce a more customized message in this way with confidence that it will be well-received.
Let’s discuss the many kinds of market segmentation now that you are aware of what it is.
Types Of Market Segmentation
Four different market segmentation methods exist. Each one is described below.
Geographic Segmentation
- Based on geographic borders, various client groups are created through geographic segmentation.
- Understanding that potential customers’ demands and interests differ depending on their geographic location, climate, and area enables you to choose where to sell and advertise a brand as well as where to grow a firm.
Demographic Segmentation
- Demographic segmentation is breaking down the market based on several criteria, including age, gender, nationality, level of education, size of the family, occupation, income, etc.
- Since it is based on understanding how customers use your products and services and how much they are ready to pay for them, this is one of the most popular methods of market segmentation.
Psychographic Segmentation
- Using psychographic segmentation, the target market is divided into groups according to their behavior, way of life, attitudes, and interests.
- Focus groups, surveys, interviews, and case studies are examples of market research techniques that can be used to understand the target population.
Behavioral Segmentation
- The focus of behavioral segmentation is on particular responses, consumer behaviors, patterns, and the manner in which consumers make decisions and make purchases.
- Examples of behavioral segmentation include consumer sentiments toward your brand, how they utilize it, and how aware they are of it. This kind of data is gathered in a manner akin to that of psychographic data.
- This enables marketers to create a more specialized strategy.
Market segmentation objectives
- Different market segmentation goals exist. Here, we describe each of them for you:
Product
- One of an organization’s primary goals is to provide successful products, which is one of the justifications for market research.
- This enables you to increase your product’s functionality while lowering expenses to better serve your target market.
Price
- Choosing the appropriate pricing for your products is another goal of market segmentation.
- Figuring out who will be willing to pay for it in the general population.
Promotion
- You can better guide your strategies by focusing on the individuals in each sector and grouping them into several groups.
Place
The ultimate aim of segmentation is to choose how to present and make a product appealing to each set of consumers.
How to put a Market Segmentation Plan into Practice
You need to understand market segmentation in order to implement a plan.
Understanding how to use this strategy is crucial. We have a resource for you that will aid you because of this:
Establish your market
- However, finding out the size of the [market], where your brand fits, and whether your products can actually accomplish what they promise should be your main priorities at this stage of [segmentation].
Subdivide your market.
- The selection of the type that best represents your brand is the focus of this step.
Recognize your market
- Depending on the kind of question you pick, ask your customers the appropriate questions.
- However, your target market needs to be thoroughly understanding. To collect their responses, you can conduct online surveys.
Create a consumer segment.
- You must conduct data analysis after gathering replies in order to develop dynamic segments that are specific to your brand.
Test your approach.
- By testing it with your target audience, you can ensure that your interpretation of the survey data is accurate.
- This will enable you to review and make the required adjustments to your [market segmentation] tactics.
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