Targeted Marketing What Is Target Market Segmentation?

Eguaogie Eghosa
0
810 Views
Jul 18, 2022

The act of splitting your target market into manageable categories is the essence of market segmentation, also known as marketing segmentation. Market segmentation divides a market into subsets according to demographics, requirements, goals, shared interests, and other psychographic or behavioral factors that help marketers better understand their target market. It is one of the key strategies used by professional SEO services for market analysis.

Your product, sales, and marketing tactics can benefit from this targeting if you have a good understanding of your market segments. Market segmentation can help your product development cycles by guiding how you build product offers for various segments, such as high-income vs. low-income or men vs. women.

Based on variables such as age, gender, income, and marital status, targeted marketing aims promotional strategies toward a particular demographic of potential clients. Find examples of target markets to help you better understand this marketing technique.

How Does Targeted Marketing Work?

Targeted marketing is a method that focuses marketing efforts on a certain group of people who have common characteristics such as location, age, political beliefs, marital status, hobbies, or personal values. These groups make up your target market or audience. Because your target consumers are similar in need, viewpoint, or lifestyle, your marketing can concentrate on the problems of their particular subset, enabling you to develop a more potent, specialized marketing message.

Why Is Targeted Marketing Important?

Ad campaigns can be optimized and niche market-specific ads can be created with the help of a targeted marketing plan for business owners or professional SEO services. Businesses create a marketing strategy when a new product enters the market with the goal of capturing market share.

By conducting thorough market research, retailers and manufacturers can identify precisely the kind of consumer who would pay for their goods and services.

They can then establish a price strategy that matches their needs and modify their advertising to target that particular consumer base. Marketers can improve their conversion rates if they can promote specifically to their target audience and avoid wasting money on the general public.

Four illustrations of target market segmentation

Target market segmentation can be used in a variety of ways by small firms and solopreneurs to expand their clientele and increase brand recognition. The following are some examples of demographic segmentation:

1. Age range

Many companies divide their customer bases into groups depending on age. You may, for instance, focus on audiences like millennials or baby boomers.

2. Geographical location

You can take your target market's geography into account while developing your audience targeting approach. Your advertising will only be displayed in that city, region, or nation if you use geographic segmentation. This is beneficial for small businesses trying to connect with local clients.

3. Income level

When creating your ideal buyer persona, the income level of your clients might be a key factor. Depending on your products or services, your focused marketing strategy might concentrate on those with higher incomes or people with lower incomes.

4. Psychographic Attributes

A psychographic segmentation takes into account the psychological traits of your audience, such as their opinions, values, and religious beliefs.

If you’re providing professional SEO services, these are some of the things you need to know to start segmenting.

Segmentation involves five main steps

1. Select a market: Does a demand for your goods and services exist? What size is the market? In the present market, where does your brand stand?

2. Segment Your Market: Choose which of the five factors (demographic, firmographic, psychographic, geography, or behavior) you want to employ to segment your market before you begin. You don't have to stick to just one; in fact, most manufacturers use a combination, so try them all out and see which one works the best for you.

3. Knowing your market: You can achieve this by running preliminary research projects like polls, focus groups, and surveys. Utilize a mix of quantitative (tickable/selectable boxes) and qualitative (open-ended for open text) questions that are relevant to the segments you have selected.

4. Establish your customer segments by examining the data from your study to identify the client groups that are most important to your brand.

5. Test your marketing strategy: After analysing the responses, test your conclusions with your target market and use conversion monitoring to gauge its efficacy. And carry on testing. If uptake is underwhelming, reconsider your segments or research strategies.