When you segment a market, you simultaneously segment marketing options. You can divide your market by geographical areas, such as by city, county, state, region, like the West Coast , country, or international region, like Asia. The funds are allocated to various media depending on the target audience, impact of the media, competitor advertising, and so on. Age Group Another obvious division or segment would be separating consumers in age groups. An automobile company divides its market between urban, suburban, and rural markets. The marketer can study the needs of each segment in the light of current offerings by the competitors.
For this reason, immediate sales may drop. For example, department stores cater more to the mid-income range while specialty or designer shops target the higher income-generating population. An international news company divides its markets along international lines. You develop your products and marketing plans along those three segments. You decide to use benefit segmentation and divide your market into recreational campers and serious outdoor adventurers, who have difference tolerances for price and expectations of quality.
One of the most popular techniques businesses can use to better target their products at the right customers is market segmentation. Therefore, it is only but fitting to separate men and women into segments. This type of segmentation commonly used by clothing apparel makers target specifics in a demographic and uses that to define the segment. Examples of Geographic Segmentation Example 1 Picture a retail clothing company that sells both warm weather and cold weather outdoor gear. In essence, psychographics gives you the knowledge to craft content that will resonate with your prospects, and through search, help them find you. So based on this, marketing strategies are adjusted.
Definition of Benefit Segmentation Benefit segmentation is dividing your market based upon the perceived value, benefit, or advantage consumers perceive that they receive from a product or service. Customer Matching Marketers are able to separate and match products that are more appropriate for each segment to the customers who need them in a specific market. Catering to a narrowly defined market means the business must narrowly define its offerings to suit those customers. Often, different grades of the same product are offered to different market segments. Armed with this information, you can tailor a powerful, well-honed pitch aimed squarely at your target prospect. They are namely the high-income group, mid-income group, and the low-income group. Compared to other means of segmentation such as , , or n, geographic segmentation is relatively easy to perform.
Basically it is divided into children, teens, and adults. A young professional who is just getting started might be able to purchase one of his affordable items. This is class movement right before our eyes. By focusing more on key characteristics and prioritizing strategies based on that information, there is a likely higher chance of success than creating a generic campaign introduced across all segments of the market. The idea is that once you figure out the high-density areas of customer interest, you can eliminate ineffective distribution channels and use these new, freed-up resources to pump those outlets that receive the greatest amount of traffic. Data-driven market segmentation heavily relies on the accuracy of the customer profiles with the new information on the regular basis. And herein lays the value of becoming familiar with the mindset of those different personalities within your prospective organizations.
Age is a particularly common form of demographic segmentation particularly as consumer needs evolve with age. Different market segments may require different distribution mix. You operate an outdoor sporting goods company. There are even cultural differences between these three areas. The singles population tend to have a different spending habit compared to that of married consumers. There are four main types of behavioural segmentation: Buying on occasion is one of the most obvious forms of behavioural segmentation i. Once a commercial advantage is obtained, marketing decisions become significantly safer and more powerful.
Down the road, once this professional has attained some degree of success, he or she might opt for the mid-range or high-end option. That being said, consider adding a question about place of residency while building your next survey for administration. Differences in customer response to different marketing tools serve as the basis for deciding on the allocation of market funds to different customer groups. A company that makes precision machining tools would waste money marketing placing ads in general interest magazines, as the average consumer has no use for precision machining equipment. It gives businesses the opportunity to hone in their products and services in areas where there may be more of a male or female-specific demand.
Research conducted by the company shows that people in urban markets prefer lightweight bikes with skinny tires that allow them to zip in and out of traffic. If you use psychographic segmentation to aid B2B demand generation, what other benefits do you see? Products with high market potential can be designed and directed to meet the satisfaction of the target market. Properly done, psychographics can provide a distinct competitive advantage by placing you in the mindset of your prospect. In marketing, geographic segmentation is when a business divides its target market based on location in order to better tailor its marketing efforts There are several ways in which geographic segmentation can be performed. Many successful businesses continue to grow simply because they really understand their markets and their customers. In our experience, the implications of market segmentation are ever growing mainly due to the growth of digital data and due to the advancement of tools and technologies to tap data in the real time.
There are several ways that a market can be geographically segmented. Samsung has accomplished just that by beating Apple at its own game; by marketing heavily to young and cool customers, Samsung has taken over the smartphone market this is what Apple did initially, and in retrospect it never should have adopted an all-encompassing marketing strategy, because pretty much everyone wants to use a product marketed to the young and cool. Jacobs has segmented the market into three primary categories: affordable, mid-range, and high-end. This helps them to make the necessary adjustments in their marketing initiative targeted at different groups of customers. A particular app may target only teens, while an energy drink may target athletes or those who wish they were.