One of the practices used in marketing is called Market segmentation. This is quite effective during the research part of a marketing campaign, giving your company a more direct group of consumers to research and target. Market segmentation can best be described as the process of dividing a broad customer base into smaller groups based on certain criteria. The criteria will range quite widely based on what the company is trying to market. Some of the more basic groups are age, gender, lifestyles, and product familiarity. By beginning your marketing research with market segmentation, you can gain quite a bit in both knowledge and cost savings.
It Helps You Get To Know Your Consumers
By using market segmentation on your customer base, you now have a smaller and more direct consumer group to research. Rather than learning the shopping habits on a wide range of customers, you can focus on a particular age, resident area and even gender. By narrowing down your research to a smaller group, you are able to fine-tune your surveys and studies to a particular area. You have already removed variables that do not affect this segment, so now you can focus on the variables that do affect them how it relates to you. This saves both time and money on research that is no longer needed. It also contributes a more direct marketing campaign to the preferred group. This direct marketing allows you to send a customized message to a smaller group rather than a broad one to a wider audience. It also allows quite the opposite; through research, you can segment a group that generally does not use your product or service. You now have a smaller group to find out why, and you have insight into what you can do to open up your company to a new customer base.
You Can Now Speak Their Language
Once you have targeted a certain market segmentation, you can produce a marketing campaign that speaks their direct language. Advertising a late night coffee shop in a busy district will have a very different message to seniors than it would to young adults. If you want to let young adults know about this particular shop, the look and feel of your campaign should cater directly to them. If the point of your marketing is to introduce your shop to an older generation, then the look and feel of your campaign will target this group and will look very different than the message to a younger crowd. This would not be possible without the help of market segmentation.
Market segmentation is an imperative part of today's marketing. Advertising to a general consumer base is not cost effective or efficient. In today's economy, it is very difficult for the largest of companies to maintain this type of advertising. Market segmentation breaks down your consumers into smaller groups that become much easier to target and deliver a message to. If you are looking to grow your business, or even to maintain a certain success level, talk to a reputable marketing company about marketing segmentation and how to customize it to work effectively for you.
Kelton , a market research firm in Los Angeles, New York, Chicago, and London provides actionable strategic plans with a range of qualitative and quantitative research methodologies like brand tracking, customer journey mapping, market segmentation, copy testing, omnibus surveys and many more. Visit KeltonGlobal for more info.