Market Segmentation, A Must for Small Businesses

Market segmentation is a must for all small businesses when it comes to clever marketing strategy. It defines and targets customer markets in order to minimise the loss of expenditure and increase customer conversion.

demographic

What is Market Segmentation?

Market segmentation is a process. It requires the division of your customer base into distinct groups – customer segments. This is based on research regarding purchasing behaviour and attitudes. Marketing segmentation creates specific customer segments where focused marketing strategies are applied.

Why Market Segmentation?

Understanding customers purchasing behaviour, attitudes and previous response are vital to future marketing tactics.

Does it make sense to sell or advertise products or services the same way to every customer? After all, by nature, we are all different. We think different. We look at the same products differently. In today’s marketing world, customers don’t want to feel like they are treated the same way. They don’t want to feel targeted; they want to feel chosen when told about products.

As a small business this might sound time consuming and expensive but in the long run, it will pay off.

Market segmentation

Research and Evaluation of Current Marketing Tactics

Nothing changes, if nothing changes. To discover current customer trends and predict future behaviour all businesses carry out research and data analysis. Understanding customer purchasing patterns, attitudes, and reactions to your marketing tactics are valuable.

Examples of research & analysis:

  • Monitor responds to your emails – do they open them or delete them without opening?
  • Purchasing behaviour – do they buy often but in small quantities or buy rarely but in large quantities?

You will see patterns emerge that will assist in creating future marketing campaigns to specific targeted customers.

Market Segments Must be Useful

Market segmentation

Since all customers are different, it goes without saying purchasing behaviours, buying frequency, cash spent and response to advertising techniques affect every customer differently.

In order for segmentation to be useful, segments must be large. It is no good only having 3 or 4 people in one segment.

This is important, as you will invest time to create a separate marketing plan for each segment.

Some Factors for Creating Customer Segments

Here are some factors you might consider when creating customer segments:

Demographic factors – age, marital status, occupation, education, income

Geographic factors – country, rural, and urban

Behaviour factors – product knowledge, needs

Psychological factors – lifestyle, values, and personality,

Testing Your Marketing Segments

Once you have segmented your customer base into what you feel are suitable segments, you must test.

You do this by targeting them using a personalised approach i.e. an email. Test your personalised approach to guarantee you placed customers in the correct segment. You also review whether the factors chosen for the segment reflect your marketing goals.

Continued Analysis

So far, you have created customer segments based on decided factors. You have placed customers into each segment based on analysis of their purchasing behaviour, attitudes, and responses.

Now you have defined your segments. Next step is to target each customer segment with the appropriate marketing plan.

Continued analysis for each segment is necessary to monitor for changes in response to targeting, changes in attitude and behaviour. You can address them as necessary.

Conclusion

Marketing segments help focus your marketing efforts. This allows for greater prospects of success and positive customers responses.

Marketing segmentation is designed to minimise the waste of time, money, and other resources.

Share:

Share on facebook
Facebook
Share on twitter
Twitter
Share on linkedin
LinkedIn

You might be interested in reading....

A Simple Guide to Call to Actions

What are Call to Actions? Call to actions (CTAs) are vital to have on all online and printed promotion material. No marketing campaign can do without a call to action. A CTA is your chance to achieve the desired result from your customers, getting them to buy or use your product / service or simply offer them information. Basically, you’re telling them to take a particular action. You might have

Read More »

Our Top Tips for Promoting Fundraising Events

Fundraising & Promotion Summer is a great time for charity fundraising. People are more willing to participate and attend a fundraising event in good weather. Fundraising is a fantastic opportunity to promote your charity or organisation. You can reveal your creativity through your fundraising event while boosting brand awareness. Think about what type of fundraising event that will work best for your goal. Fundraising Event Types Endurance Event: These are your fun

Read More »

How to Get Other Websites to Link to Your Website

How to Get Other Websites to Link to Your Website for SEO It is important to for SEO to check the websites that are linking to yours. It is very important to know how to get other websites to link to your website to boost SEO. Quality Links The quality of your backlinks affects your SEO ranking. For example, spam sites linking to your website are not good for your

Read More »

LET'S GET STARTED!