Since the end of the 20th century, different types of market segmentation have been used by merchants. As simple as it may seem, segmentation is of vital importance to form any company’s marketing plan.
What is market segmentation?
Market segmentation is mainly based on a process of dividing the potential customer market into different groups and segments based on certain characteristics. The members of each group share similar characteristics and have one or more aspects in common with each other.
Carrying out a correct market segmentation serves to achieve the objectives that arise in the Marketing department of the companies. As the markets are better segmented, optimal strategies can be created for each of the segments in order to be able to offer them the products and services that best suit their needs.
Why is market segmentation important?
Market segmentation determines how the company’s target groups are divided according to their characteristics such as age, income, personality, and behaviors.
This process is super important because allows you to better optimize products and target them to the audiences that really need it. In this way, the investment to be made in advertising to attract this segment can also be optimized.
It is also important to carry out a market segmentation to guarantee that the product or service to be offered satisfies 100% the needs of the target group. If prior research and market segmentation is not carried out before launching a service on the market, then it is very likely that the service may fail since it will not have a specific audience to target.
The more detail is included in the segmentation that we carry out to reach a target audience, the better the reception that the product, good or service will have when it is launched on the market.
Types of market segmentation
There are several types of market segmentation that exist. Let’s see some of them below:
1. Geographic segmentation
As its name implies, this type of segmentation refers to the geographical location of the target audience. In what physical space and under what environment does the segment unfold. With this type of segmentation, it is important to define: the country, the city, the region and the climate in which the audience you plan to reach develops.
2. Demographic segmentation
This type of segmentation is one of the most important because it allows you to take into account very specific aspects of the audience. The more you narrow it down, the easier it is to have potential customers. The variables of this segment are: age, sex, marital status, profession, educational level, culture, nationality and socio-economic status.
3. Psychographic segmentation
Taking into account the psychological particularities of the potential client is also key when segmenting users. Knowing about their personality, lifestyle, values, attitudes, interests and preferences allows us to adapt the product and service so that it aligns with customer expectations.
4. Behavioral segmentation
Knowing about user behavior also allows us to further profile the product or service before its launch. At this point, the consumption and use patterns of the audience are analyzed in relation to what is going to be promoted. Also, the sensitivity that you have regarding the price, the loyalty with the brand and the response that you can have in relation to what is being offered.
5. Industry segmentation
This type of segmentation serves to have a better overview of the sector in which the company will enter to compete. Be it the economic, technological, agricultural, etc. The important thing at this point is to know how many businesses are dedicated to the same and what products they offer to the market, in this way the product they have can be better analyzed so that when introducing the new product or service they can compete. with something different from what other industries offer.
6. Product segmentation
Last but not least is the product segmentation, in which the specifications of the product are taken into account. For example: laptop, women’s shoes, kitchen mats, etc. The more specific the product segmentation, the better the chance that the product reaches the right person.
Taking into account each of the types of market segmentation mentioned above, it can be guaranteed that a product or service goes to market in a very well-defined way, with a specific audience and willing to satisfy specific needs.
It is important that all the segmentations are involved in the study that is carried out since they all address different characteristics that will increase the notoriety of the brand. If all companies paid more attention to this, they would guarantee their success and optimization of resources.
Market segmentation does not need to be complicated to be effective. It is only time to put on the table all the points that we have learned here, by putting them into practice and working on them very well, then you will be closer to having a quite remarkable position.
Start by establishing the place where your launch will take place, well outline the people to whom it will be directed: age, gender, profession, etc. Also take into account the interests of these people, preferences, tastes, values and consumption frequencies.
Of course: research your competitors and their products very well. Offer your target audience innovative attributes that are differentiating and that generate preference. Think carefully about all the details and you will see in this way how by putting this strategy into practice you will be able to generate excellent results.
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