For example, in organizations, it is common to choose a specific target audience to work with. At times, this makes us think and consider that the company is limiting its actions and, as a consequence, stopping making money.
But if we think about it a little more, we will realize that this definition improves the company’s results.
What is market segmentation?
Market segmentation is used by companies paraguay mobile database to separate the target audience they want to work with. Considered a market phenomenon, the technique consists of defining the marketing strategy by identifying the target market.
Segmenting this market means dividing it so that consumers are grouped according to a series of characteristics, needs or preferences. It is important that a segment includes people with homogeneous factors and these depend on the objective of the segmentation.
This separation into consumer groups allows the company to identify and privilege one or more segments according to a range of objectives or products.
The segmentation process requires identifying the criteria that affect or influence purchasing decisions. There are various segmentation criteria: social, geographic, demographic, economic, lifestyle and many others.
Typically, market segmentation requires addressing several criteria to better guide the marketing actions to be followed. The more aspects are used to characterize an audience, the easier it will be to develop a marketing strategy.
There is no way to think about segmenting a target audience without knowing what characteristics it needs to have for the strategy to be correctly defined.
A market study or research needs to consider an objective such as creating a product, optimizing a brand concept or another that has strategic relevance.
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Benefits of market segmentation
Undoubtedly, one of the main benefits of segmenting how many clicks you need for good adsense earnings the public and selecting a group of personnel to reach is the high possibility of reducing costs . This reduction in costs is caused by managing smaller groups of consumers.
As a result, it is possible to devote more attention to the target audience and generate greater profits .
In small businesses, market segmentation becomes even more important, as this size has very limited resources to meet high demand.
In addition, it cannot maintain the high costs required by a high logistical and administrative capacity.
Typically, segmentation of micro and small organizations is done considering geographic location , age, sex and some particular characteristic that brings what the company offers closer to the target people.
No major disadvantages have been detected when talking about segmentation, but one aspect that could be evaluated is the difficulty of obtaining clear information on the behavioural characteristics of people.
Is market segmentation a cost or an investment?
If you were to answer this question, what would your argument be?
Well, here we have to make you think a little. When you do a segmentation, you need to know the people , which requires prior market research . OK, this was already mentioned in the article!
What we hadn’t mentioned yet is that, in order to do this study, it is essential to put money at stake, that is, you have to pay to get to know people. According to this point, segmentation could be considered a cost.
On the other hand, if we think about the overall situation generated, we realize that segmentation requires an investment and that this can be recovered in a short time. Don’t worry, if you don’t understand, we’ll explain it to you.
The thing is that by segmenting we reduce the probability of running a marketing campaign that no one sees, or spending money on a product without knowing if the public will accept it. Segmentation guides the company’s actions and reduces production and administrative costs.
Given this, it can be said that segmentation is an important investment. Furthermore, it can be said that, by doing a good market segmentation, it is possible to obtain more profit for various reasons.
- The company knows its target audience better.
- The company recognizes the needs of the group it chose to serve.
- A closer link is created between the company and consumers.
- People better understand the company’s purpose.
By now you will have a clear position on segmentation. While on the one hand it reduces the audience for which the company will work, on the other it increases the chances of success within that group. That is, it allows actions to be targeted and not lost in the attempt.
5 steps: How to do market segmentation
Consider general criteria
This criterion enables the recognition of the socioeconomic and demographic characteristics of prospects or clients. It is easy to do since it takes into account data such as age, sex, place of residence, and income.
Choosing the target market
Consumption profile
This section considers the way in which the sector relates to the market. It also recognizes how consumers’ behavior is defined when it comes to buying a certain product or contracting a certain service.
At this point, the study should consider variables such as:
- Lifestyle;
- Tastes and preferences;
- Opinions;
- Consumption habits.
It is important to highlight that the consumer profile research must be done considering the segment selected in the previous point.
Marketing strategy design
This must be adjusted to the needs of the company and the market so that there is a coherent relationship between production and consumption. For this, it is necessary to consider the marketing mix .
Sale of the product/service
If all the previous steps have been successfully completed, it is time to sell the product or service in the market segment. It is also time to expand sales and seek new horizons.
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