How does it affect your business?

That market segmentation It’s an essential tool for all brands, regardless of their size, as it affects most aspects of the business.

In a nutshell, is defined as how to choose which part of the market to target. This sounds simple, but it is one of the most difficult issues when defining a company. Let’s see why.

What is market segmentation

Imagine you see a big cake (chocolate, why not?). yummy You really want to eat it. But as much as you might think you could eat it whole, you realize that in order to enjoy this delicacy, you have to cut off a portion.

Let’s transfer this idea to the market and your company. If the market is the whole pie, you have to decide which part of it you want to “eat” so that you can “work” it. That said, where will your focus be?

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Why market segmentation is so relevant

Let’s continue with the cake metaphor. What would happen if you tried to eat it whole? Stomach ache aside, clear it’s more than you can cover, right? The same goes for business.

Apart from certain exceptions of very bulky products (such as Coca Cola), In order to make good business decisions, it is necessary to focus, segment and compartmentalize the market you are going to attack.

Why is this so relevant? Each market segment will have different characteristics, behavior and needs. Knowing these attributes will help you create the right business definitions for your company. target audience.

Some examples of these characteristics are:

• demographics (age, income, level of education, etc.).
• Geographically (where they live and shop).
• psychologically (tastes and styles of this group of people).
• behave (what do they look for when buying, what do they prioritize to decide whether to buy a product or not).

It should be noted that these attributes are becoming increasingly complex. The characteristics of a segment are no longer defined by a simple dichotomy (whether “A” or “B”) or by simpler variables like “male” or “female”. For example, when it comes to gender response, there are multiple options today.

So it’s important to keep that in mind about the above attributes also added (and increasingly) “soft” variables such as personality and interests, that it is important to take them into account when defining your market segment.

How market segmentation affects your branding strategy

Think of it like this: the better you know your audiencethe better you know what things will have an impact on them and what will drive them to make purchasing decisions.

That will help you a lot commercial definitions you need to make about your business. Let’s look at some specific aspects of how this works:

1) About your production processes

Knowing your market segment, understanding its needs, preferences and purchasing behavior will help you define what type of products will be more successful in this group.

This can, for example, guide the selection of your product line or the production of a new collection.

2) About your online marketing strategy

Market segmentation is an important tool to define which types of marketing campaigns may perform better with your target audience.

When you can focus on what really works for your goal, not only will your content and advertising strategies become more effective, but your brand will also be better positioned among them.

For example: Which social networks do they use? What kind of message will influence them the most? Knowing this will help you optimize your advertising investments on social networks.

3) About your customer service

Understanding the characteristics of your target audience can also help you define how you will approach customer service with them.

What kind of attention will they expect? What behaviors can please them? What are the things you absolutely must avoid?

Determining this concretely and realistically will not only help you build customer loyaltybut also to make them promoters of your brand.

Examples of market segmentation

Let’s look at some examples of cloud shops that managed to achieve good market segmentation and create brands that clearly define their specialties and know the characteristics of their audience.

Guru Market is an online shop specializing in healthy products. “Our mission is to offer you the best products on the market in one place, so you can eat rich and healthy,” they explain in their Tiendanube.

This brand has managed to focus on a segment within the large online grocery shopping market that is looking for healthy options and that needs to facilitate the delivery process at a single point of purchase.

perfect dragons is an accessory brand that works with super original materials and designs. They manage to personalize them in a special way with a unique and very own aesthetic.

This Tiendanube has managed to find its market segment in the competitive fashion world with a group of people who want to stand out by using special accessories.

beurers is a wellness brand that sells health, personal care and beauty products. They were able to identify a market segment that wants to focus on body care and values ​​the quality of the products they buy. And on the other hand, an audience that wants to reach it through technology.

They have managed to differentiate themselves with their products of German origin and to position themselves as market leaders in this segment. This is how knowing your audience became a competitive advantage for your brand.

In these Examples of market segmentation You can then see how brands have been able to build businesses that not only have a better position within their target audience, but managed to focus their resources and thus be more productive in their strategies. Ready to do this exercise with your brand?