Save money through segmentation

Segmentation is the process of dividing your market into distinct groups of buyers. Each group having different specific needs.

Why is it important to my business?

I’m sorry to have to tell you, but not everyone in the population will want to buy your product! Every product or service applies to only a segment of the marketplace. Those people whose needs your product or service addresses.

By identifying the correct group for your product, and focusing your marketing and sales efforts to them, you will not only save money and time, but also be a lot more successful in your endeavours!

Marketing opportunities increase when segmented groups of clients and customers with varying needs and wants are recognized.

There are various ways of carrying out segmentation for your market, for example:

1. Demographic factors such as age, family/organisation size, life cycle, occupation, industry.
2. Geographic factors such as country, region, postcode, town/village.
3. Behavioural factors such as product knowledge, usage, attitudes, responses.
4. Psychographic factors such as lifestyle, values, personality, aspirations.

• Understand your customer and their needs more clearly
• Gain competitive advantage over competitors who do not serve certain segments adequately
• Retain clients more successfully
• Use your resources more effectively
• Identify the marketing activities required to reach and communicate with them
• Identify new and emerging markets
• Monitor the performance of marketing activity to different segments

• Is there a clear and distinct group with the same motivations and needs that are different to those in other segments?
• Are the members of the group accessible?
• Can you communicate with them cost effectively to sell your products and services?
• How attractive is this segment in terms of size, profitability and strength?
• Do you have competencies in this area and the resources needed to serve it?
• Can you easily obtain the data required to target the spcific segment?

Segmentation is a very important part of planning, and can make the difference between phenomenally successful and diabolically unsuccessful marketing!

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