Learn the importance of market segmentation and increase your sales
Most business managers are focused on their own product and the management of the company, forgetting other crucial points such as market segmentation, a topic crucial for a good marketing campaign. If you want to know more about the benefits of market segmentation and what it can do for your company, continue reading.
What is market segmentation?
Consider that consumers are divided as follows: 25% like blue and 75% like red. You have a company that sells blue ink. Who should you sell your product to? Who likes your color, right?
Thus, market segmentation is the division of a market into smaller and more specific groups, which are in accordance with their interests and habits.
What is the importance of market segmentation?
Market segmentation is used by companies to define their strategies. At the end of the day, it’s no use spending all your resources on an audience that will never become a customer.
When a segmentation is done correctly, it is possible to offer products and services that really interest your consumers and allows you to draw the best marketing and advertising strategies for your organization.
How to make a market segmentation?
As we already mentioned, market segmentation consists of dividing and grouping your consumers into different groups. To separate them, several topics can be taken into account:
- Consumption habits;
- Consumption channels.
In this way, the company manages to work its products according to the most relevant criteria for its public. It is important to highlight that a company with more than one product can and should have more than one market segmentation, because each product caters to a different need, with that a different public is also identified.
Normally these data should be linked to planning, because they are extremely strategic and serve as a basis for making decisions in the future.
Criteria that affect the consumer’s purchasing decision are also taken into account in a good market segmentation, such as:
- Relationship with companies;
- Socioeconomic Index.
Consumer behavior is a topic of great relevance that is always being studied, as the consumers change their habits regularly. Therefore, there are many factors that should be considered when creating a segmentation.
Examples of targeting methods
There are several methods of market segmentation and each company can adopt the one that suits them. However, there are already established segmentation methods that many companies do not give up for any reason. Since their effectiveness for the objectives of the organization has been proven.
Check the most booming methods:
If you are looking to offer your company a broad notion of who the consumers are, how they behave and above all how they relate to the brand, then market research is your ideal method of market segmentation.
Its main objective is to point to what people like and identify how they act in the purchase process. It also shows what process they perform to use a certain product or service.
Its main deliveries are:
- What to do to disclose your products or services;
- Identify if the research group is suitable to become your target audience;
- Orient positioning changes;
- Orient communication.
There is no reason to fight for the same space as your competitors if you can be the only one when positioning yourself in a different way and be recognized for it.
People are unique and although they share one aspect or another in common, they have very particular habits. Your positioning should be based on this and try to differentiate yourself from other competitors in a unique way.
For example, most juice brands stand as healthy, but have you ever seen one that talks about being ideal for sports? Not! That would be a unique positioning.
While everyone says they are healthy, we still have a vacancy in the consumer’s mind. That way you can meet a certain specific micro-niche .
Recognition of the target audience
Before making contact with your target audience it is necessary to know who you are. After all, it is impossible to sell without knowing correctly who you are trying to create a link with them.
If an inadequate recognition of the target audience is made, all efforts made are wasted.
In summary, separating consumers into groups helps you to correctly focus on the message you want to convey.
Advantages of market segmentation
As you should have noticed throughout this article, market segmentation helps you to know who you should contact. However, it offers us other important benefits as well, which are:
- Helps to decide how the relationship will be carried out;
- Helps to decide what language will be used;
- Helps to decide which channels will be exploited;
- It makes your campaign more efficient;
- It helps your brand to stand out in the market;
- It optimizes your time.
After all this, it is practically impossible to remain indifferent to the importance of market segmentation. Invest in this strategy today!
We hope to have been clear with our explanation about the importance of market segmentation. If not, just leave your question below and we will help you answer it!