What’s Market Segmentation?
The term “Market Segmentation” refers to the process of dividing the entire customers market into segments that are identical to one another.
It should be in our best interest that this notion helps companies in focusing on the most substantial and lucrative customer segment, which does not disappoint their expectations in terms of sales and revenue.
Furthermore, this technique is implemented before targeting the market, it gives us the chance to be more selective about who should we promote and market our products to.
It is worth mentioning that various companies have used the technique of breaking down customers into segments and then targeting them to fulfill their distinctive needs. It helps in achieving the organizational goals along with result-oriented outputs.
The Types of Market Segmentation:
From what the research states, we’ve learned that segmentation as well as targeting helps both consumers and business customers in the market.
It is worth mentioning that most companies would evaluate the ‘demographics’ of the customers to penetrate and compose a market-segment, however, other methods include, taking a sneak-peak at their psychographic and behavioral approach.
It also embraces the consumer’s interest as well as the usage rate for a specific product. For example, business customers are often evaluated as per the company’s size and type.
Based on the research, various renowned marketers have emphasized over doing thorough market research before initiating the process of “market segmentation” and “target marketing” to acquire the most fruitful results from therein. The most effective way is to add questions that open up customers regarding their demographics and so on.