To reach customers with a marketing message or ad campaign, targeting the right audiences for
any business is one of the most important aspects.
Sometimes, business message might reach only few people who end up becoming
customers only and also to few people who aren’t interested in same.When messaging
or spreading awareness isn’t optimized for audiences, businesses usually end up with a
lot of wasted advertising budget.
Market segmentation here helps businesses to target just the people most likely
to become satisfied customers of the company. To segment a market, splitting it up into
groups that have similar characteristics is the option anytime.
Market segmentation in short, organizes customers or business base along
demographic, geographic, behavioral, or psychographic lines—or say a whole
combination of all of them.
Market segmentation is the process of dividing a target market into smaller, more
defined categories. It segments customers and audiences into groups that share similar
characteristics such as demographics, interests, needs etc.Using different types of
market segmentation allows business to target customers based unique characteristics,
create more effective marketing campaigns, and find opportunities in the market all at a
Leverage Market segmentation:-
1. What is actually market segmentation?
2. Why market segmentation is important?
3. What are the Types of market segmentation?
4. How to create a market segmentation strategy?
Well... Coming back to 1st question, Market segmentation is nothing but the process of
dividing Target market of business into tiny, more defined categories.It segments
customers and audiences into groups that share similar characteristics such as
demographics, interests, needs, or location.
Market segmentation makes it easier to focus marketing efforts and resources on
reaching the most valuable audiences and achieving business goals.
It also allows businesses to get to know their customers, identify what is needed in the
market segment, and determine how can business best meet needs or touch up targets!
This helps businesses to design and execute better marketing strategies from top to
Those important factors of Market Segmentation -
1. Create stronger marketing messages
When any business knows with whom it is talking to, It develops stronger marketing
messages by avoiding and ignoring generic, vague language that speaks to a broad
audience. Instead, business prefers direct messaging that speaks to the needs, wants,
and unique characteristics of audiences.
2. Identify the most effective marketing tactics
With dozens of marketing tactics available, it can be difficult to know what will attract the
Using different types of market segmentation guides company towards the marketing
strategies that will work best.When the audience business is targeting, it can determine
the best solutions and methods for reaching them.
3. Design hyper-targeted ads
On digital ad services, business targets audiences by their age, location, purchasing
habits, interests, and more and when any business use market segmentation to define
audience, know these detailed characteristics and can use them to create more
effective, targeted digital ad campaigns.
4. Attract (and convert) quality leads
When marketing messages are clear, direct, and targeted they always attract the right
Businesses draw ideal prospects and are more likely to convert potential customers into
5. Differentiate business brand from competitors-
Being more specific about the value propositions and messaging also allows business
to stand out from competitors.
Instead of blending in with other brands, it can differentiate specified brand by focusing
on specific customer needs and characteristics.
6. Build deeper customer affinity
Business already knows what customers want and need, and with the help of Market
Segmentation it can deliver and communicate offerings that uniquely serve and
resonate with them Click & Tweet! .
This distinct value and messaging leads to stronger bonds between brands and
customers and creates lasting brand affinity.
7. Identify niche market opportunities
Niche marketing is the process of identifying segments of industries and verticals that
have a large audience that can be served in new ways.
When business segment their target market, it can find underserved niche markets that
can develop new products and services for.
8. Stay focused
Targeting in marketing keeps business messaging and marketing objectives on track. It
helps you identify new marketing opportunities and avoid distractions that will lead
business away from target
Despite the well‐documented benefits which segmentation offers, businesses continue
to encounter implementation difficulties. This raises concerns about the cause of these
problems and how they might be overcome. These concerns are addressed in this
paper in the form of three questions: Is segmentation a good idea? If segmentation is
such a good idea, why does it sometimes fail? What can be done to reduce the chance
of failure? A mix of published evidence and case examples is used to explore these
questions. The paper concludes by suggesting that if marketers are to overcome their
segmentation implementation difficulties, they need practical guidance at three stages in
the segmentation process. Before the project begins they must understand the role of
success factors contributing to a successful result. During the segmentation project the
qualities of the emerging segments must be clarified. After segmentation is complete
the question of segment attractiveness must be considered. There is currently a gulf
between the priorities of academics and practitioners carrying out segmentation. If this
is to be bridged, further research is needed to provide guidance on segmentation
Types of Market Segmentation:-
1. Demographic segmentation
2. Psychographic segmentation
3. Behavioral segmentation
4. Geographic segmentation
Demographic segmentation is one of the most popular and commonly used types of
market segmentation. It refers to statistical data about a group of people.
Where the above examples are helpful for segmenting B2C audiences, a business
might use the following to classify a B2B audience:
Because demographic information is statistical and factual, it is usually relatively easy to
uncover using various sites for market research.
Psychographic segmentation categorizes audiences and customers by factors that
relate to their personalities and characteristics.
Subconscious and conscious beliefs
Psychographic segmentation factors are slightly more difficult to identify than
demographics because they are subjective. They are not data-focused and require
research to uncover and understand.
While demographic and psychographic segmentation focus on who a customer
is, behavioral segmentation focuses on how the customer acts.
Behavioral segmentation requires you to know about your customer’s actions.
Geographic segmentation is the simplest type of market segmentation. It categorizes
customers based on geographic borders.
Radius around a certain location
Urban or rural
Geographic segmentation can refer to a defined geographic boundary (such as a city or
ZIP code) or type of area (such as the size of city or type of climate).