What is market segmentation and how does it impact my strategy? – WAU
Market segmentation is a method based on the identification of characteristics, needs, preferences and consumption habits common to different groups that are part of the same target audience. This segmentation allows a deep knowledge about such audience, favoring the creation and optimization of communication and marketing strategies.
Market segmentation should be used by companies to define their operating strategies.
On the one hand, offer products or services that interest your consumers. On the other hand, to outline the best marketing, advertising and communication mechanisms for the business. But, for that, it is necessary to understand who your audience is.
Are you interested in knowing how to identify your audience and what is the best way to do this segmentation? So read on and delve into the subject!
What is market segmentation
Market segmentation means dividing it, that is, separating consumers into different groups according to a series of variables, such as characteristics, needs, preferences, behaviors, consumption habits and much more.
Thus, the company is able to work on its products and services according to the stakeholders.
These data are very strategic, as they will guide a company’s marketing campaigns and communication mechanisms.
After all, when defining one or more segments to be worked on, the brand starts to develop materials and content that can attract and relate to its possible customers.
For the market segmentation well, it is necessary to identify some criteria that affect purchasing decisions. There are several possibilities:
- relationship with companies;
- socioeconomic index;
- among others.
Hence the concept of Persona in Inbound Marketing.
The main targeting methods
As segmentation happens based on different information, companies must carry out a deep work to get to know the public and separate them into groups according to specific aspects.
Hard work – but necessary – to make the business more competitive and efficient.
Currently, there are several methods that should be used in this segmentation process. They will generate information needed to get to know people better and determine those with whom your brand can relate and thus facilitate marketing and sales.
We have separated some of the main methods used in market segmentation. Be sure to read:
This method allows to have a broad notion of who the consumers are, how they behave and relate to the brands.
The market research will point out what the tastes of those people are, how they act at the time of purchase, what the process for deciding on a product or service, among other information.
With that, you will know:
- what to do to advertise your products or services;
- understand if they are interesting to your target audience;
- guide positioning changes;
- and, of course, guide your entire communication process – whether in the relationship with people or in the company’s own disclosure.
People behave differently.
Education, economic class, place where they live, among other aspects, influence behavior and purchase decision. Thus, your customers have specific habits.
Based on this information, it is possible to position the company in a unique way in the market and meet the desires and needs of the audiences with which the brand will relate.
In addition, it is possible to build a good image to facilitate and streamline the entire sales process.
Recognition of the target audience
Before putting marketing campaigns on the street, it is important to understand with whom the company will market.
Nobody can please – let alone sell – everyone. It is much easier to direct your sales efforts to those people who are more open to your products or services.
Separating consumers by interest groups helps you to better target your work.
For example: a school works with the education of children and adolescents, but the parents hire the service. Therefore, she cannot run a marketing campaign just for students and forget about her parents.
Thus, this school now has 2 publics of interest with whom to relate, and each of them demands specific communication work.
Understanding this process makes the company more efficient and objective.
The benefits of segmentation
Market segmentation is an important strategic component for companies.
More than helping to determine with whom you will communicate, this tool also helps in:
- how this relationship will take place;
- the language to be used;
- the channels to be explored;
- among other aspects.
The following are some of the central benefits of having good market segmentation. Are you curious? Just follow the next paragraphs:
Generalist marketing plans tend not to have a good practical result, as they are designed for a wide universe of people.
Thus, people who have no need for your product are receiving your promotion, but will not give the expected result. Then, there is a waste of time and resources.
A targeted and targeted campaign ends up generating more results by relating to the right people.
The chances of closing a deal increase and your team starts to act more efficiently.
If the promotion of your products or services is reaching people who are really interested in them, then the work of your salespeople will be easier.
The consumer has already gone through a process that prepared him for purchase, and the sales team will do less to show him why he should hire your company.
On the other hand, if the marketing campaign is done in a general way, people who have no interest in products and services are being reached.
When the seller contacts you, it will require a lot of convincing effort – increasing the cost of the operation without the guarantee of a closed deal.
Segmented campaigns tend to have a lower cost because it is a structured action and with a well-defined focus of action.
By knowing who the company’s target audience is and where to find these people, the marketing team knows exactly where to allocate campaign resources.
Without the need to test different communication channels and with a well-worked budget, the dissemination action becomes more efficient, with better results and at a relatively lower cost.
Just as it is not possible to sell to everyone, it is also quite complicated to become the leading company in the entire consumer market.
Segmenting the market is determining who you are going to trade with and thus directing your efforts in the right direction.
With targeted marketing actions, a sales system adapted to the company’s strategy and a deep knowledge of its audience, a company has the strategic advantages to become a reference in the market in which it operates.
Learn more about creating personas here!
Did you like this post about market segmentation? So check out this text about the marketing processes that cannot be ignored.