Market segmentation is the practice of dividing your target market into approachable groups. Market segmentation creates subsets of a market based on demographics, needs, priorities, common interests, and other psychographic or behavioral criteria used to better understand the target audience. By understanding your market segments, you can leverage this targeting in product, sales, and marketing strategies. Market segments can power your product development cycles by informing how you create product offerings for different segments like men vs. women or high income vs. low income. benefits include: Stronger marketing messages: You no longer have to be generic and vague – you can speak directly to a specific group of people in ways they can relate to, because you understand their characteristics, wants, and needs Targeted digital advertising: Market segmentation helps you understand and define your audience’s characteristics, so you can direct your marketing efforts to specific ages, locations, buying habits, interests etc. Developing effective marketing strategies: Knowing your target audience gives you a head start about what methods, tactics and solutions they will be most responsive to. Better response rates and lower acquisition costs: These will result from creating your marketing communications both in ad messaging and advanced targeting on digital platforms like Facebook and Google using your segmentation. Attracting the right customers: Market segmentation helps you create targeted, clear and direct messaging that attracts the people you want to buy from you. Increasing brand loyalty: when customers feel understood, uniquely well served and trusting, they are more likely to stick with your brand. Differentiating your brand from the competition: More specific, personal messaging makes your brand stand out. Identifying niche markets: segmentation can uncover not only underserved markets, but also new ways of serving existing markets – opportunities which can be used to grow your brand. Staying on message: As segmentation is so linear, it’s easy to stay on track with your marketing strategies, and not get distracted into less effective areas. Driving growth: You can encourage customers to buy from you again, or trade up from a lower-priced product or service. Enhanced profits: Different customers have different disposable incomes; prices can be set according to how much they are willing to spend. Knowing this can ensure you don’t over (or under) sell yourself. Product development: You’ll be able to design with the needs of your customers top of mind, and develop different products that cater to your different customer base areas.

Saranya R Kurup

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