When creating marketing strategies for upcoming product or service launches, many companies often attempt to target the entire general public. However, they are unable to determine techniques that successfully attract a wide variety of consumers. Product launches are failing every day due to a lack of market segmentation. By trying to reach customers that have no stake in your company’s products or services, you are forgoing relationships with customers and an advantage against competitors within the market.
What is Market Segmentation?
Market segmentation is the division of a company’s audience into groups of like-minded people in order to appropriately target each sector. By focusing on each customer group separately, you have a greater chance of gaining audience attention and generating interest in your products. Audiences will be more likely to directly relate to your product’s message since it’s being aimed at their needs and desires, as opposed to the general public.
A company’s audience should be divided into multiple segments. This will allow you to pitch the same product to different groups of individuals using varying strategies. For example, market segmentation for exercise equipment includes promoting it to individuals trying to lose weight, as well as fitness gurus that workout daily. However, they must be promoted using different techniques.
Ways to Segment a Market
There are various ways to determine the segments you can use to categorize your audience. The best part is — you don’t have to choose just one! To make your segments more focused, combine multiple distinct factors into each group. Here are some segmentation factors to consider.
1. Demographics: Segment based on factors such as gender, age, nationality, marital status, family size, religion, race and employment. While demographics should be considered when segmenting your audience, a segment should not be formed solely based on demographics. Rather, combine demographics with another category. With continuous updates in privacy policies, it can be difficult to obtain client demographics without the help of an experienced marketing agency.
2. Psychographics: Segment based on social status and lifestyle.
It is important to consider social status when determining your client focus, as wealth determines which products one will purchase. Is your product intended for customers who can afford luxuries, or those searching for cheap alternatives?
Lifestyle gauges customers’ values and day-to-day activities. For example, are the customers you’re targeting always on-the-go? Do they value sustainability and healthy living?
3. Behaviors: Segment based on how often they need/want to use the product.
Audiences’ reasonings as to why they need the product, and which benefits they will be gaining by doing so, will vary based on the segment. Those who intend to use a product or service frequently will need to be targeted differently than those who will use it only occasionally. Similarly, the benefits given to those using a computer for work are different from those using it for entertainment purposes. Therefore, these benefits should be promoted separately.
4. Geographical location: Segment based on where your audience lives. Not all products and services attract people of all areas. Thus, it is important to narrow in on geographical factors that apply to your stakeholders.
Marketing agencies take many factors into consideration when determining geographic segmentation factors. For example, are you marketing your product to those in rural or urban areas? Is there typical weather in which your product is best suited?
You may be wondering how to identify different market segments. Marketing agencies experienced in strategy and planning perform detailed market research to determine which stakeholders you should be targeting. It’s after these marketing agencies decide your stakeholders that they develop marketing strategies to appropriately target every segment and their needs.
Why Market Segmentation?
By conducting research and executing market segmentation strategies, you will build a niche following and earn the trust of your consumers. Since you’re focusing in on specific types of individuals, these individuals will feel as if you understand their needs and desires. Then, they will continue to purchase and refer your product to others.
Market segmentation allows your company to stand out from competitors that are not segmenting their audiences. This gives you an advantage against businesses that sell similar products. Market segmentation allows your company to build a relationship with consumers, strengthening your understanding of how company products and services can be improved. By viewing your products from the eyes of your focused clients, you will grasp their desires and the advancements that need to be made.
Start targeting the right audience. Appleton Creative is an award-winning, full-service online marketing agency located in Orlando, Florida. Appleton works with local, national and international clients to deliver custom content, persuasive online ads and expertly crafted campaigns. By implementing valuable and shareable digital content strategies, Appleton can create the perfect social and online marketing experience for your brand and audience. Your Internet advertising goals are worth a conversation: contact us at 407-246-0092 or firstname.lastname@example.org.