Segmentation means dividing the market into different groups of consumers. That's basically it. This, in turn, makes the company's work easier, even helping to reduce costs and avoid wasting money.
In this post, we will look at what market segmentation is in more detail, its importance, the advantages of this practice and other important points. Read on and learn a little more about this very current topic!
1. What is market segmentation?
As we said in the introduction, segmenting means dividing. Customer segmentation can take into account several criteria: consumer characteristics, needs, preferences, behaviors, desires and consumption habits.
Knowing these details, the manager can work on products and vp engineering email lists services according to the interests and needs of the public.
Market segmentation is part of strategic management , which serves to guide marketing campaigns and the mechanisms that define the organization's communication. By defining one or more segments, the company can develop content, products and services that optimize the relationship with the public, attracting their attention.
The possibilities are many, considering everything that influences the consumer's purchasing decision: demographics, behavior, geography, lifestyle, personality, relationships with organizations, socioeconomic index and so on.
2. How important is good market segmentation?
An organization's target audience involves the group of consumers whose characteristics are conducive to being attracted to what the company offers. In other words, they are impacted by the brand in some way. In fact, the target audience may not be the end consumer, but it exerts some kind of influence on their purchasing decision.
Market segmentation allows you to identify which consumers are actually in need of your company's product/service, offering good business opportunities. It also provides a basis for advertising strategies, making them more productive.
Another proof of its importance is that it helps you understand how and through what means it is possible to maintain communication with consumers .
Segmenting consumers into niches also helps to reduce costs and improve business profitability.
3. Benefits of efficient market segmentation
There is no doubt that market segmentation offers numerous benefits to a company. It is a competitive intelligence tool that helps define who the company will communicate with, how this communication will take place, which channels will be used, what type of language will be used, and other things.
Check out some key benefits that segmentation can offer your business:
Efficient campaigns
Generalist strategic marketing planning often fails to deliver satisfactory results. This is because it is designed with a very broad range of consumers in mind. Many people who do not need the company's products or services are also being reached by marketing campaigns, but they will not deliver the desired results. This wastes resources and time.
When the campaign is segmented and targeted at a specific audience, the results tend to be more efficient, as the right people are reached.
The opportunities for more deals to be closed increase and the sales team and other professionals start to work more productively and efficiently.
The time of sale
When marketing campaigns target the exact consumers who want and need your products/services, the sales team's job becomes much simpler. Consumers have already gone through a process that has prepared them to make purchases, which helps the sales team to more clearly demonstrate the reasons why consumers should buy from the company.
A generalist campaign, on the other hand, reaches consumers who have no need or interest in what is being offered. In this case, the professional will need to make more of an effort to persuade the person to buy the product offered by the company. In addition to having less guarantee that they will be able to close the deal, the company also has higher operating costs.
