Market segmentation is the technique used to enable a business to better target it products at the right customers. It is about identifying the specific needs and wants of customer groups and then using those insights into providing products and services which meet customer needs as well as helping create the right marketing angle to target these segments.
It goes without saying then that this is a critical part of your business. It's vital that you can achieve distinct results for your market segments. By achieving different results you are able to laser target your segments with the right kind of advertising which is more likely to end up in increased sales and ultimately increased profits. By laser targeting you are getting more bang for your buck.
There are four main segments:
Where are your customers based.
If you know where they live you can target them with advertising in or near their locality. If your customer is local to a specific place there is no point advertising 100 miles away.
What are the age, gender, occupation and Socio-economic group of your likely customer?
If you sell a product that helps out the elderly there is no point in putting advertising in a magazine aimed at people under the age of 30. Many PPC programs allow you to filter out customers based on demographics thus reducing your costs.
How often will they purchase, what benefits do they seek, customer loyalty, eagerness to purchase.
If you know people will likely buy again - you can give them a bit of a push by giving away leaflets for 10% off to help keep your customers.
What are your customers personality trates, lifestyles, attitudes to life.
Certain advertising will appeal more to one segment than another. How your business operates maybe more important than the price of your products or cost of your services you provide.
Instead of creating a one size fits all marketing strategy - you can create different campaigns for different segments of your audience. In this way you are more likely to grab a sale and a potential customer for life. You now need to read up on Target Market Segment Strategy.