How to Take Advantage of Target Market Segmentation and Its Utilization
In developing its marketing strategy, a brand often finds it difficult to reach consumers. This can be triggered by determining the inappropriate segmentation of target consumers so that brand communication is less precise.
To effectively reach your audience, you need to understand their behavior. By knowing the target market, a brand will find it easier to organize marketing campaigns, increase ROI, to increase sales, and greater consumer loyalty.
According to a study conducted by Hubspot, campaigns conducted with target market segmentation via email resulted in 101% more clicks than non-segmented ones, making this tactic more efficient and cost-effective.
Therefore, make a market segmentation and pay attention to the steps you need to take when making it. Here's the discussion:
1. Collect the latest data on your audience
Third-party data sources are very useful in helping you build a picture of your industry, competition, potential customer base, and segments. Try the company has consumer data every three months.
This duration means that the company will always know that the data used is the most up to date so that it is relevant to use.
2. Get to know competitors
Understanding competitors in the market is very important. This will help identify, and understand your competitors' products or services. With a simple identification, you can figure out the right business and marketing tactics to take.
Chances are you've found a group that has been served very well by competitors, while another group has not. Take advantage of this potential to create your marketing strategy. Pay attention to what types of marketing communications have been or haven't worked before.
3. Use this analysis into business strategy
After conducting a market analysis, and identifying the most potential audience, you must incorporate this target market segmentation into your business plan. The goal is that you can make predictions about business strategy.
You can identify who will buy your new product, how many products will be purchased, and how often the product will be purchased. With this, it is easier to predict the increase and decrease in demand occurring in the market.
4. Categorize your market
All of your customers are unique, but you can see the pattern of habits among their group. By identifying patterns and their characteristics, this will help you create a segmentation of the target market.
The right market segmentation can also help you in perfecting the message that the brand wants to convey to each group. To find out your target market, ask the following questions:
- what defines this group?
- what do these groups have in common?
- how do they find out about your product?
Using third-party data, such as surveys, you can get answers to these questions, so you can build a detailed picture of what these market segments want your brand to see.
Once you have information and data about your audience, divide them into even more granular segments. Here are some market segmentation categories:
1. Behavior
Basically, consumer behavior can be seen from how and where they interact with your product or brand. This can also be seen from the use of social media used by customers.
2. Demographic
These criteria include gender, age, income, education, social class, religion, and nationality.
3. Geographical
To break down geographic categories, you can use information on where consumers live, work, or even where they spend their weekends. These can be further subdivided by category of nation, state, city, county, and so on.
4. Psychographic
This can include consumer personality variables, such as introverts and extroverts, lifestyle, attitudes, likes and dislikes.
Determining the variables that distinguish one group from another is the key to knowing the market. When you have a better understanding of your target audience, you'll know what they want, when they need your product, and where the demand for your product is coming from.