What purpose does market segmentation serve for marketers?
In simple terms, market segmentation is the process of separating potential customers into different groups. These groups are usually based on different characteristics of consumers. There are four types of market segmentation, which are:
You could segment your market strategy according to contacts who have purchased a particular item or who have made a purchase within a set period of time.
You can segment your strategy according to where your contacts are based or where they work. This helps if you have an offer that is specific to contacts who live in a particular area or who are local to a particular store.
Once you have collected them, you could use the interests, opinions and beliefs of your contacts to target them with content.
This is the most common type of segmentation that you can use. Segmenting by demographics allows you to segment according to the data that you collect about your contacts.
Customer segmentation is done so that you can target consumers who have similar traits at once. These consumers are more likely to respond to your marketing efforts in a similar manner as they share identical or similar traits. For this reason, you may need to have totally different marketing strategies for each segment.
This is important for marketers and brands because it makes it easier to personalize marketing campaigns for different types of people. Marketers can save time and effort by targeting segments rather than individual consumers. This helps you to market your brand and products more efficiently in a cost-effective manner.
Not only does it make your campaigns more cost-effective, but it also reduces the risk associated with them. When you divide your audience based on certain key characteristics, you can personalize your campaigns in a better manner. This increases the chances of success as compared to a generic campaign that targets all segments.
You can also use it to prioritize a certain segment of your audience. For instance, if a segment is more likely to purchase your product, you can direct more marketing resources there.