Understanding Market Segmentation

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Understanding Market Segmentation

After you’ve spent countless hours developing the perfect marketing strategy, you want to make sure that it works. You want to feel confident that it will not only reach your target audience but also bring in more customers to make business boom. This requires reaching out to a larger audience, but it’s not that simple. The more people that you reach out to, the more likely you are to lose half of them before they even open an email. This is because larger audiences need to be segmented to increase your chances of success. Market segmentation can help you reach every potential client in your target audience.

Four Types

When you use market segmentation to categorize your target audience, it’s important to keep in mind that there are four types. Each type of market segmentation can have its own outreach plan to reach the target audience. This helps your message reach a larger number of potential clients instead of getting lost on the way.

Geographic

Geographic segmentation involves separating audiences according to their geographic location. People in different cities or countries have different cultures, different beliefs and different seasons. For example, a bathing suit will be sold around the year in a warm climate, such as Florida. It will only be sold during certain seasons in northern states that are cold for part of the year. Different locations also celebrate different holidays, which can contribute to local marketing campaigns and specials.

Demographic

Demographic segmentation targets audiences based on age, gender, etc. While there are several things considered in demographic segmentation, age and gender are the two most important factors. Men and women respond well to different marketing campaigns. Age is considered one of the most important things when determining a target audience. Different ages have different behaviors, and different media habits. Understanding media consumption among different age groups is essential for making sure your message reaches its target audience.

Behavioural

This type of segmentation involves understanding the way that a buyer makes decisions, such as whether they would like to purchase a product or not. Learning more about customer’s reactions to your products or brands, how they feel about brands, and what they look for are all types of behaviors that are used. Understanding this can help marketing agencies build a brand that customers like.

Psychographic

Psychographic traits include things like:

-        Attitude

-        Particular needs

-        Interests

-        Opinions

-        Lifestyles

These can be a bit harder to determine than geographic location. Market research, such as surveys, can often help marketing agencies learn more psychographic traits to tailor marketing campaigns towards people with specific interests. A thorough evaluation of marketing research, using empathy and considering how other factors influence people, such as location, will help determine traits that marketing agencies need to know.

Using More Than One Segmentation

Most marketing agencies do not use all four types of brand segmentation, as this would be too time consuming. Instead, they tend to focus on one or two, such as location and behavior, to narrow down their target audience. Instead of focusing on all demographics, most campaigns focus on age to help the campaign be successful.

Understanding marketing segmentation will not only help your message get to your target audience, it will help you build a business that has loyal customers.