Blog Post 4: Why and How to Segment your Market

Quick Tips for Segmenting your Target Market

It is very important that you target your advertising and marketing toward people who are actually potential buyers. For example, it would be rather pointless and unsuccessful to play commercials for sports cars on TV networks that only play children’s cartoons. To do this and be successful, companies need to research who’s needs they are capable of satisfying and market their products and services in such a way that their efforts are recognized by potential buyers.

·      Segment based on Geographic information.

·      Research and determine things such as where prospective customers live and work. Determine the answers to questions such as: What region are they in? Do they live in cities or small towns?

·      This information is helpful in determining Place.  Where is it going to be most effective to advertise and market your product or service?

·      Segment based on Demographics.

·      Find out the statistical data of a given group of prospective buyers. Determine the gender, age, race, income, and perhaps occupations of those that might be interested.

·      With this information, you are more likely to create ads that will appeal to specific groups of people.

·      Segment based on Psychographics.

·      Investigate the mental and emotional attributes of your prospective buyers. Learn about their personalities, what they value most, and goals and aspirations they may have and share.

·      This information is an additional tool to be used when determining what way you want to market your product and which of its attributes will be most important to exhibit.

·      Segment based on Behavioral research and data.

·      See what the customers have done in the past. Where do they tend to shop? What reasons are behind their purchases? What benefits are they concerned about?

·      Again, this information is helpful when determining Place. This will help with marketing in the sense that the information is very relative to their purchasing history.

Benefits of segmenting your market include saving money, selling more products for a greater profit, reaching new customers, and increasing your market share. Additional benefits are having better communication with customers about the specific features your products and services have, as well as, relating to your customers in a way that they receive the information better and are more easily convinced that what you have to offer is exactly what they need.