What is market segmentation
Many modern companies now started including in their marketing strategies uses of marketing segmentation term for their marketing of goods and services.
Implementing market segmentation allows businesses to allocate their resources effectively, enhance customer satisfaction, and improve their overall marketing performance.
By understanding the distinct characteristics and preferences of different customer market segments, businesses can develop targeted marketing strategies that resonate with their target audience and drive business growth.
The process of breaking potential consumer of particular marketing companies to achieve marketing goals or targets is known as marketing segmentation.
Marketing segmentation defined as process of making small groups of expected buyers which have same purpose of buying particular goods and services. In marketing segmentation company marketing agent made small segment of prospective buyers or customers consists of same demand for company goods and behave similar to any market action.
Marketing segmentation applied as tool in marketing research. Marketing agent of all companies make small segment of customer according to their similar demand and behaviour to their company products, goods and services.
Every active companies inside market are continuously doing marketing research for making their products supreme as compared to other companies products. Company marketing agent collect data from inside market.
Many companies running their advertisement focused on targeted customers. To target their focused customers marketing companies divide larger customer population of market into smaller groups or segments.
Qualitative data are collected by marketing agent as feedbacks in marketing segmentation. In process of marketing research company make larger market area into smaller segment of similar buyers having same demand to increase their chance focus on expected future quality customers in the process of it marketing agent included qualitative sample in research design of marketing.
Marketing segmentation help companies to do market research more efficiently and management of market become easier for increasing company sells.
Marketing segmentation examples
Understanding the distinct needs, preferences, and behaviors of these segments, businesses can tailor their marketing strategies and offerings to effectively reach and engage with their target audience.
Here are some examples of market segmentation are demographic segmentation, psychographic segmentation, behavioural segmentation, geographical segmentation, occasion based segmentation, benifit segmentation and b2b segmentation of marketing.
Lets understand marketing segmentation in marketing research with help of an example. For example you are marketing agent of any swimming suit branded company.
You want to target only focused customers who are expected to become your company product buyer in future from larger customer population come in market.
To target focused customers you as marketing agent will make small groups of expected customers by using market segmentation term in your marketing research.
If any marketing company don't use marketing segmentation term in their marketing research strategies then that company have to target larger population of customers and results in their products can't reach out to their ideal customers. This results decline in company sales of their goods, products and services inside market.
Importance of market segmentation
Market segmentation importance play their role in marketing research. Marketing agent included in their marketing strategies for increasing sales of their company goods and services. Following important marketing research points are covered under marketing segmentation.
Companies often employ a combination of marketing segmentation approaches to create more nuanced and targeted marketing strategies.
The key is to understand the unique consumers behaviour characteristics and preferences of each segment and develop tailored messages, products, and services to meet their specific needs.
Marketing segmentation helps companies in their marketing strategies to identify their going to be expected targeted consumers for their goods, products and services.
Marketing segmentation helps marketing helps marketing company to manage their business and do accounting of their goods sale.
If you are doing marketing research for your company then marketing segmentation helps you find correct market for your products. This results for you do marketing efficiently in suitable market and can increase your products sales.
Market segment help marketing company to understand about their ideal customers for their goods, products and services.
Marketing company will easily get satisfaction level record about their goods and manage their product quality standards according to customers feedback.
Market segmentation explanation
We can understand market segmentation by studying marketing strategies applied by various company inside market.
Companies often employ a combination of segmentation approaches to create more nuanced and targeted marketing strategies.
The key is to understand the unique characteristics and preferences of each segment and develop tailored messages, products, and services to meet their specific needs.
Any company inside market make market segmentation on the bases of 3 criteria.
A. Homogeneity or similarity
B. Distinction or unique
C. Reaction of customers or response of consumer
Homogeneity or similarity here means marketing company will select same character of expected buyers.
Definition of market segmentation
Marketing strategies which are applied by any marketing company to focus on their targeted customers for their products and present their products in front focused customers according to their interest in they appeal.
Market segmentation is the process of dividing a broad target market into smaller, more defined segments based on various characteristics, such as demographics, psychographics, behavior, and geographic location.
Types of market segmentation
Marketing company divide market area into four types of market segmentation according to their marketing strategies.Marketing segmentation of market in marketing strategies can be done at six types like demographic market segmentation, psychographic market segmentation, behavioural segmentation, occasion market segmentation and geographic segmentation, B2B market segmentation level of market.
Demographic market segmentation
In types of marketing segmentation marketing agent will divided focused expected customers on the basis of customers living demographic area. Demographic marketing segmentation make customer larger population into smaller segment on the basis of observation.
This type of segmentation involves dividing the market based on demographic factors such as age, gender, income, occupation, education level, marital status, and family size.
Age, male, female, family size, married, unmarried, education, occupation and income level and etc are the some criteria used in observation of customers and then marketing company makes demographic segmentation of market.
Demographic market segmentation is one of the basic form of making market segment. When we combine this with other types of market segment then it results in narrowing down market size.
What is an examples of demographic segmentation of market
Lets understand demographic market segmentation with help of several examples. For example, a company may target a specific age group (e.g., millennials or seniors) or focus on a particular income bracket.
We can take look over automobile sector companies and let's try to understand what they doing production of cars. You will clearly found that every branded company of automobile are doing production of car according to income level range of customers.
Automobile companies here make their demographic segmentation of market area into three income level segment of market and launched three cost range cars inside market. Like for low income groups price of car will and as income level increase according to cars price will also increased and luxury also.
Lets take another example of suppose any company making clothes for male and female separate category.
What are 6 types of demographic market segmentation
Marketing company make uses of demographic segmentation on their consumer market area on the bases 6 types of demographic segmentation. For doing market demographic segmentation you must know about these 6 types of bases of customers like age, sex, income level, family size, behaviour and education level of customers.
Psychographic market segmentation
Psychographic segmentation type of market segmentation which categorizes consumers based on their personality traits, values, attitudes, interests, and lifestyle choices.
Companies may target segments with specific interests, such as health and wellness enthusiasts, environmentally conscious individuals, or adventure seekers.
Behavioural market segmentation
Marketing agent in this important types of marketing segmentation can make expected market customer small segment on the bases of behavioral character of customers.
Behavioral segmentation focuses on consumers' buying behavior and usage patterns. It includes factors such as brand loyalty, occasions for product usage, benefits sought, and decision-making processes.
For instance, a company might target frequent buyers or loyal customers with personalized offers or rewards.
By applying behaviour segmentation over expected customers will results to understand how will customers behave about your company product.
Behavioural market segmentation provided information about customers several things like
Online activities of customers on your company product. In this way you as marketing agent can track online shopping habits of your expected buyers.
Action taken on website will help you to track how your expected customers taking action on website.
Action on website here in behavioural segmentation of market means as marketing agent you can easily find clear knowledge of how customers reaching your company product online.
Behavioural segmentation of market will help marketing company to find out how customers of their company products building loyalty. Here loyalty building in behavioural marketing segmentation of market mean it is seen that when customer buy company product and get satisfaction then they start to build that company products brands.
Geographical market segmentation
Geographical segmentation of market helped marketing company to understand geographic location of expected customers of their products. Geographical segmentation highly popular techniques of marketing segmentation in which marketing company divided market area on the bases of customers location.
Geographical segmentation of market can be done into various types on the bases of country, state and zip code etc.
Marketing agent can easily identify his expected company product customers on the bases to their area they live in like locality, climatic conditions, rural area, urban areas and population density etc.
Geographical segmentation of market will helped marketing company to target separately both small and big size area customers of their company products.
Making market segmentation on the bases of customers location will make easy to run ads to target local business and you can target big buisness area by covering larger customer.
Marketing company can run ads in local language to pass their company product messages influence customers.
Occasion based segmentation
Occasion based segmentation type of market segmentation targets consumers based on specific occasions or events.
For example of occasion based segmentation, companies may create marketing campaigns around holidays, seasonal events, or special occasions like birthdays or anniversaries.
B2B segmentation
Business-to-business (B2B) segmentation involves dividing the market based on the characteristics of businesses, such as industry type, company size, geographical location, or purchasing behavior.
B2B marketing companies may tailor their marketing strategies to meet the specific needs of different industries or target large corporations versus small businesses.