What is Market Segmentation?

What is Market Segmentation?

The basic definition of market segmentation is when your target audience is divided into smaller categories that share similar characteristics.

Here are a few reasons why this can benefit your brand:

  • Creating hyper-targeted ads
  • Building stronger relationships with customers
  • Differentiating your brand from competitors
  • Identifying marketing tactics that have more impact.

With market segmentation, you will gain greater insight into consumer behaviors.

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Market Segmentation Strategy: What Is It and Why Is It Important?

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You can and should define your own customer segmentation, but the key textbook examples are:

  • Geographic: country/city, urban/rural etc.
  • Demographic: age, religion, gender, income, socio-economic type, education, family size/status
  • Psychographic: lifestyle, interests, hobbies, opinions, influencers
  • Behavioral: buyer journey stage, brand loyalty traits, price sensitivity, purchasing style, usage rate
  • Media: social media/TV/newspapers/search engine preferences
  • Benefit: customer service, quality, and other specific expectations.

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The key point of market segmentation is to further use it to develop your targeting and positioning. These are the foundations of the STP (Segmentation, Targeting, Positioning) Model:

  • Targeting: based on various customer segments, you can assess which one can potentially respond better to your offering, thereby bringing more profit and/or staying longer with your brand.
  • Positioning: by considering your selected primary market segments, you can define how to go about placing your product in front of each segment and will be able to narrow down your key value proposition.

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What is market research?

You need to adapt your marketing strategy to complement the way today's consumers research, shop, & buy to sell your service. To do that, you must have a deep understanding of who your buyers are, your specific market, and what influences the purchase decisions and behavior of your target audience members.

Market research is the process of gathering information about your business's buyers personas, target audience, and customers to determine how viable and successful your product or service would be, and/or is, among these people.

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How to Do Market Research: A Guide and Template

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Customer-Centric Marketing

Customer-centric marketing is an approach to marketing that prioritizes the wants and needs of the customer over any other factor in regards to their interests.

Although their goal is to grow their business, customer-centric marketing shows us that they will be able to grow while at the same time ensure that their product or service can improve some aspect of the customers' work or life.

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How to Build a Winning Customer-Centric Marketing Strategy - Help Scout

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How Do You Know If You Have a Losing or Inconclusive A/B Test?

An inconclusive test might mean the numbers are less than a percent off, or neither variation got any traffic at all. When your tests don’t have enough data or if the numbers are too close, they are considered inconclusive or statistically insignificant.

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How to Get Useful Data From Losing and Inconclusive A/B Tests

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