What is market segmentation?
Market segmentation is a type of marketing where you target specific groups of people. When you do market segmentation, you essentially put your target audience into groups and create specific campaigns geared towards each group. There are four types of market segmentation: geographic segmentation, demographic segmentation, psychographic segmentation, and behavioral segmentation.
Why is market segmentation important?
When you use market segmentation, you show your diverse audience that you respect them because you’re coming at them with marketing that they resonate with. You’re showing you know that even in subgroups, not everyone in your target audience is the same and you hear all of your target audience’s needs and concerns. You basically win over people by not generalizing groups of people.
Geographic segmentation is when you create a specific marketing strategy for people within a certain area. Businesses that really benefit from using geographic segmentation are ones that serve a specific community, sell seasonal products, or companies that just opened a store in a new territory.
Demographic segmentation is a hyper-focused approach. It’s when you target people based on their age, gender, race, religion, family size, ethnicity, income, and/or level of education. This type of market segmentation is favorable for businesses where their audience is a certain demographic.
Psychographic segmentation is when you market to people based on their personalities. Our personalities are influenced by our values, morals, interests, hobbies, and lifestyle. Psychographic segmentation is another hyper-focused market segmentation. Retail, publishing, and travel are three industries that should use psychographic segmentation.
Behavioral segmentation deals with consumers’ buying habits. Consumers’ purchases, money, time, and lifestyle all make up this marketing strategy. With this market segmentation, get into your consumer’s head before you take action. When does your target audience most need you.
Let’s say you own a card company, for instance. You’re most profitable during Valentine’s Day, Mother’s Day, Father’s Day, and the holidays. The slowest time of the year is August as it’s summertime and there are no holidays. You want to make sure you’re doing the big bulk of your behavioral segmentation marketing during the end of January, the beginning of May, the beginning of June, and the end of November. You don’t want to wait to close to these holidays to start your marketing campaigns as you’ll lose people. With behavioral segmentation, it’s all about reaching your target audience before they make a decision.
After reading this blog post, do you feel you need help marketing to your target audience? Contact Sperling Interactive today for a plan of action! At Sperling Interactive, we’re all about stretching your marketing dollars further.