Market segmentation divides your pool of clients into more manageable groups. Each of these groups or segments share specific demands, desires, and interests that set them apart from other groups, according to BusinessDictionary.com. Many traditional marketing methods, like tv or print ads, billboards, radio spots, etc. don’t allow for extensive targeted marketing; with those methods you invest a lot of time and money in creating an ad, only to end up launching it on little more than a wing and a prayer. Lots of investment with little return guaranteed. Digital marketing you invest in this targeted marketing strategy, you will make sure you are targeting the right set of people with the right product.
Enter Web Marketing, market segmentation’s best friend!
Online marketing offers incredibly detailed controls for targeting even the most esoteric subjects, making it the perfect medium for market segmentation. Combining market segmentation with web marketing will give you the exceptional results that come with putting your product in front of the audience that wants it most.
The 4 Benefits of Marketing Segmentation
Here are four ways that the market segmentation approach proves its value.
1. Market Segmentation Makes Advertising More Effective
Segmenting your market makes it easier to address each group’s unique needs. Instead of trying to reach a broad group of people who are all vastly different, you can pinpoint various groups and appeal directly to them with far more efficiency; This will make your advertising practical and personal – and people respond to what resonates with them. Investopedia gives an example of an athletic footwear company who has market segments for long-distance runners as well as basketball players. These two groups have different needs, and will have diverse responses to advertising. It is much more effective to address their needs separately – with specialized, targeted marketing – than to lump them together.
2. Marketing Segmentation Saves Time and Money
Let’s face it: some people simply aren’t going to need – or want – your product. Appealing to absolutely everyone is impossible. Instead of wasting your precious time and resources on people who are never going to pay attention anyway, it’s much smarter to focus on those you know will benefit from what you have to offer. Those people will sit up and listen. That’s the market you want to hone in on.
3. Market Segmentation Will Increase Your Bottom Line
Initially, you may see a sales drop because when you narrow your focus to select segments of the market, you’ll more than likely lose some customers. However, this loss is mitigated because you’ll also more than likely see a boost in sales from setting your sights on just those customers who will surely pay attention. You are far more likely to hit a target if you zero in on it, rather than shooting randomly all over the place hoping you’ll hit something.
4. It Means Higher Customer Satisfaction
Market segmentation gives you the ability to match exactly the expectations of a particular group of customers. You can brand your product in just such a way that appeals to them. Your advertising can speak directly to their problems, needs, and wants; This means that when they purchase your product, their resulting satisfaction from having these problems, needs, or wants specifically addressed will be higher. Customers like these will often sing your praises to others, leading to higher sales for you.
Marketing Segmentation is a No-Brainer
Marketing segmentation is an effective strategy for targeting an audience for your business. Your marketing becomes much more powerful when you tailor it to your business’ most profitable demographic. By not wasting time on those who would not benefit from your business anyway, you can direct your resources towards those who definitely will and make a far larger impact overall.
Ready to start a powerful targeted marketing campaign for your business? Contact Thrive and let’s work together to put your product in front of the ideal audience!