Market Segmentation is the research that determines how your organization divides its customers or cohort into smaller groups based on characteristics such as, age, income, personality traits or behavior. These segments can later be used to optimize products and advertising to different customers.
Market segmentation is the process of dividing a market of potential customers into groups, or segments, based on different characteristics. The segments created are composed of consumers who will respond similarly to marketing strategies and who share traits such as similar interests, needs, or locations.
Market segmentation is the process of dividing up mass markets into groups with similar needs and wants
“Market segmentation is the process whereby producers organise their knowledge of customer groups and select for particular attention, those whose needs and wants they are best able to supply with their products”.
Market segmentation & Its Importance
- It makes it easier for marketers to personalize their marketing campaigns.
- Market segmentation also reduces the risk of an unsuccessful or ineffective marketing campaign.
- Greater company focus-it helps them to focus on what segments they want to target with specific products/ services/ content/ blogs and campaigns
- Better serve a customer’s needs and wants: satisfy a variety of customer needs by offering different bundles and incentives. Different forms and promotional activities will be used for different segments based on that segments needs/ wants and characteristics.
- More efficient in terms of time, money and other resources
- Market segmentation & Its Importance allows companies to learn about their customers. : Marketers will get to know their customers better so that they can provide a better service
- Better understanding of customer’s needs and wants
- Identify Potential Buyers
- Smaller segments may be easier to dominate
- Reach the right customers.
- Understand who your customers are and what they need,
- Maximum Customer Satisfaction:
- Effective Marketing Strategy:
- Increase in Sales Volume