Market Segmentation & Strategy
How well do you understand the diversity of your customer base? And more importantly, how does understanding your customers benefit your business?
Market segmentation is discovering and defining the meaningful differences and characteristics that exist among your customers, and using that information to target marketing to achieve the highest possible impact. Your entire customer base is not a homogeneous population, but is actually comprised of many sub-populations who make similar purchasing decisions based on shared characteristics like age, gender, ethnicity, social class, location, preferences, and many others. A proper segmentation study will give insights to the spending behaviors of your customers, and how to best reach out to one group versus another.
After completing some segmentation research, the next step is to develop a marketing strategy. One common approach is to create brands that relate to the various segments that were identified in the research. Based on this logic is why we have Mach-3 razors for men and Venus razors for women; Chuck-E-Cheese’s for kids and Dave & Buster’s for adults. A second powerful strategy is to use market segmentation data to develop advertising messages for existing brands and products in order to simultaneously appeal to multiple segments. McDonald’s has used this technique to great effect in convincing us why the Big Mac is relevant to young and old; whites, blacks, Hispanics, and Asians; rich, poor, you name it.
Market Segmentation can help your marketing strategy reach new levels of success. Contact our team today to learn how we can help you understand your customers better.