What is Marketing Segmentation?

Marketing directly to your target audience can be difficult. How do you know what to market to these potential customers? You want to be able to engage everyone, but everyone is different. People have diverse interests and not everyone will be enticed by the same marketing campaign. It is useful to know which people will be more open to certain campaigns and services. This is where market segmentation, or customer segmentation, comes in.

Feedough states, “Market Segmentation is a process of dividing the market of potential customers into different groups and segments on the basis of certain characteristics. The member of these groups share similar characteristics and usually have one or more than one aspect common among them.” When people have similar interests it is easier to market to a particular niche group. Once you have divided your target audience into similar groups, it is time to create advertisements that will attract potential customers.

Market segmentation allows you to create custom ads that cater to your consumer base with the potential to engage new customers. The Bridge writes, “Additionally, by reaching niche groups of people, marketers can craft messages specifically for them. This communication will enable marketers to connect with the target audience, develop relationships, and communicate messages that resonate.” Market segmentation is a great tactic to use to benefit your company and marketing campaign. Segmenting your target audience can be done in a multitude of ways. According to Business Dictionary, the most common are behavioral, demographic, geographic, and psychographic.

Behavioral segmentation sorts people into new and potential customers. Feedough writes, “The segments are usually divided based on their knowledge of the product and usage of the product. It is believed that the knowledge of the product and its use affects the buying decision of an individual.” This segmentation indicates if your marketing campaign will work upon a particular group of current customers and if they will continue to be brand loyal. If the person has not yet tried your product, it is important to find an advertisement that will entice them to try it. According to the Bridge, “When segmenting based on awareness, companies may opt to send their loyal customers one ad campaign, whereas target an additional campaign to prospective customers who have yet to build a relationship with the brand.” The use of this type of segmentation can be helpful when targeting current and potential customers.

People can be divided into many different categories based on gender, age, income, and race. These are all types of demographic variables. Demographic segmentation divides people into these kinds of niche groups. The Bridge writes that, “Combining various customer segmentation criteria has the potential to reach a very targeted niche market and drive sales while maximizing the value of every marketing dollar spent.” When you decide to target people based upon a specific demographic it becomes easier to craft an advertisement suited to their interests. When people can relate to a campaign they can become more inclined to participate.

Geographic segmentation is based on location. Each category can be expanded to an entire region or limited to a small town. Depending upon the location of your target market, your segmentation can vary. Using geographic segmentation allows you to target people in a specific area that is relevant to your business. This is extremely helpful for small businesses who are catering to local clientele. If you are looking to grow your business outward, it is important to research the surrounding areas and determine if they will be responsive to your company.

Psychographic segmentation divides people in regards to their values or principles. These people can be categorized by their personalities such as if they are more inclined to think about their budget. Feedough writes, “This segmentation process works on a premise that consumer buying behaviour can be influenced by his personality and lifestyle.” The psychology of a person directly influences their choice of what to buy and from who. Their preference and principles are important aspects to consider when drafting a marketing campaign.

These four major types of segmentations are crucial when considering how to create your advertisement strategy. Chron writes, “Choosing precise segments lets you tailor your advertising with equal precision.” When you decide which target markets you want to engage, it is important to devise a plan of action for each type of niche group. Whether you are marketing by location, behavior, demographic, or personality, you must produce campaigns that cater to these types of people. Follow these marketing parameters and you will be able to positively grow your audience and business.