In advertising, market segmentation is the technique of dividing a large consumer or industry group into smaller categories of buyers based on some sort of common characteristics.
Market segmentation can be done in many different ways, including market research, target markets analysis, and market survey. Market segmentation allows advertisers to focus their marketing efforts on a smaller group of potential buyers. With this method, advertisers can more effectively direct their messages to a smaller portion of the population. It also allows them to better control their costs. It is important to find the right criteria for classifying consumer groups.
There are four types of market segmentation.
These include: Affographic, Demographic, Geographic, and Niche.
These are broken down into further categories: Personalized market segmentation, which includes age, sex, education, and income; These four types of segmentation are based on four unique factors. These are psychographic, geographic, behavioral, and demographic. They can be broken down further according to how they apply to you and your market. Let’s take a look at these four categories. They have different characteristics that will affect the success of your marketing campaign.
Psychographic refers to who you are as a brand.
According to psychographics, you can segment the audience based on characteristics like age, gender, ethnicity, cultural heritage, socioeconomic status, and interests. Psychographic also encompasses personality.
Geographical segmentation is based on where you live.
Location has a lot to do with who you want to reach. According to geography, you can categorize people based on where they are geographically. This is helpful in marketing different products and services. It enables you to start targeting potential customers who live close to you or have similar interests.
Another important factor is behavioral segmentation.
It looks at what your customers do with your product or service. Based on studies, behavior marketing has proven to be effective in reaching more consumers. However, there are also drawbacks. If you don’t target behavior, you won’t necessarily get more customers.
Behavioral segmentation is a key factor in analyzing your market.
The age range, income level, and ethnic groups are some of the factors that you can analyze. For example, if you sell different products for kids, women, and men, you would likely target a specific customer base. But if you market a television program for all ages, you would likely get more revenue. You can segment based on these factors.
Behavioral segmentation uses consumer behaviors to identify groupings of people. For example, you might segment consumers according to age, gender, educational background, or occupational class. These behavioral categories can help you predict which segments of consumers you would most likely to reach. That is, if you know that older women are more likely to buy makeup, you might market to them more.
Another type of market segmentation is geography.
If you have a store in two different cities, for example, one in Chicago and one in San Francisco, you can segment the population according to its location. You might then market to people who live in Chicago but would travel to San Francisco if they wanted to buy your product. Geographic segmentation is helpful in finding new markets you can market to.
The fourth type of market segmentation strategy is behavioral.
This involves using data to predict which customers will buy what. A good example is the TV ratings. By predicting which shows are popular with the audience, you can advertise programs that are likely to gain audience appeal.
You can start to target these segments immediately after identifying your customer. However, if you don’t have identified your customer yet, it’s better to start segmenting based on demographic. Marketers can use various types of statistical tools to identify certain characteristics of individuals. For instance, using the U.S. Census, you can identify different groups of people by their age, income, gender, and other characteristics.
Marketers can also segment products according to location.
Retailers can create business listings using zip codes and region-based variables. In this case, customers are grouped based on their geographical location. Marketers can also use other types of variables such as commute times and home prices to segment customers geographically. In this case, shoppers in certain areas may be more likely to buy a particular product than others.
Another option is geographic segmentation. This involves identifying neighborhoods or regions. Based on the information you obtain from zip codes, you can start targeting products to potential, ideal customers within a particular area. For instance, you can target grocery stores based on the commute time they offer. This enables you to serve prospective customers who can reach your store conveniently.
Marketers can segment through demographics.
With demographic segmentation, you’ll get insights about who your ideal customers are. Marketers might make assumptions on what group of customers will make purchases based on characteristics such as race, gender, and age. However, analyzing data on demographics can give marketers insights into groups that would make ideal customers.
These are just 4 types of market segmentation. There are many more. If you’re interested in exploring the topic further, you can consult with professionals. The Internet has lots of good information and resources for this topic. Indeed, this topic is very important to understand, and you should definitely feel free to look for more information online.