Types & Benefits of Market Segmentation
While thinking of marketing strategy, one important factor that we must keep in mind is targeting the right audience. Every individual is unique. Hence, the marketing strategy must also be tailored to appeal to every end user. This is where the importance of knowing the type & Benefits of Market Segmentation lies in
Market Segmentation
Today marketing is about being precise, focussing on the needs of the customers. Market segmentation helps us achieve nothing but that. We group users or audiences according to their needs and requirements. This will allow us to plan our marketing strategies to appeal to different groups of end-users. We can better our existing marketing tactics and build a much stronger customer base
Types of Market Segmentation
Demographic segmentation
A demographic segmentation determines who your end users are in the simplest way. It is the most basic form of segmentation, using traits such as age, occupation, gender, income, education etc.
Demographic segmentation
A demographic segmentation determines who your end users are in the simplest way. It is the most basic form of segmentation, using traits such as age, occupation, gender, income, education etc.
Behavioural segmentation
behavioural segmentation is one of the popular ways of segmenting to personalise marketing campaigns. It is specific to how consumers interact with your brand. Based on digital footprints, it can include variables like how the product benefits the consumer, how much your campaign prompts the consumer to buy etc.
Geographic segmentation
Here, consumers are grouped together based on variables like city, state, climate etc. Segmenting according to geography becomes more important when you are trying to target consumers of a specific locality. You might also have to change the language of your campaigns as well as alter campaigns according to interests and needs of the target group.
Geographic segmentation
Here, consumers are grouped together based on variables like city, state, climate etc. Segmenting according to geography becomes more important when you are trying to target consumers of a specific locality. You might also have to change the language of your campaigns as well as alter campaigns according to interests and needs of the target group.
Benefits of Market Segmentation
Improves Reach of Campaigns
Market segmentation enables you to target and reach out to the right audience with the right message. You could create marketing campaigns that cater to different types of consumers aloowing you engage better with you audience and help you in converting them to your consumers.
Niche based Marketing
If your brand tries to sell everything and cater to everyone, then it becomes generic and confusing to your consumers. Marketing segmentation enables you to specialise your brand to sell to a particular group of consumers which would help you have a better reach.
Pricing
Marketing Segmentation can help you make other decisions for your brand such as pricing and sales distribution. You can also decide where and to whom to pitch your brand according to the relevant segments of consumer. This will eliminate any kind of resource wastage.
Reliable Assessment
Segmenting your consumers not only makes you service them better but it also makes it easier for you to measure how successful your marketing strategies are and how well your brand is performing. This will help you to make changes to you messaging or reorient your policies according to the segmented consumers.
Brand Loyalty
When you divide your consumers, it allows you to create campaigns and strategies that appeal to each segment of consumers. As you create more tailored campaigns that are consumer-oriented, it helps form a strong loyal consumer base; helping you grow as well as retain your consumers.
Therefore, with adequate audience insights, we can divide our consumers into segments based on behavioural variables, demographical variables etc. As a result, you will be able to narrow down your marketing strategies to reach the right end users who are in need your products and services.
However, online advertising is getting so complex that even the parameters for segmentation may be less accurate than they used to be. This brings us to dilemma of how practical will categorizing users on geographical and demographical variables be. It’s become more like throwing something on the wall hoping it will stick.
Audience Personas
Audience persona or widely called buyer persona is nothing but a research based profile that sketches a target consumer for reference. The personas are usually created on user research and web analytics. One important thing to keep in mind is that the goal of the persona is not depict every consumer but rather focus on major needs of the users.
Benefits of Audience Persona
Know your Potential clients
After creation of personas, you now know how your potential clients look like. By campaigning or networking sites, you can try matching users to personas. This will help us create strategies to reach out to them. buyer personas show you who your audience, and as a result who your new clients will be.
Humanizes your audience
Most of the times marketing fails because we haven’t correctly grasped the need of our consumers. This is where personas come to the rescue. When you use persona built on real user survey, it makes you focus on the needs of users and make your product more appealing for them. It will help us better understand our consumers and create campaigns that send out the right message to the right users.
Rapport
Through user survey, we become aware of the needs of the users. By coming onto address their needs and issues your brand will automatically connect with the users. This will create a loyal consumer base as you provide customised campaigning with the right messaging to the right user groups.
Marketing Personas
Personas, as we already discussed, uses qualitative and quantitative data to show an end user. Personas somewhat lifts the segments by providing a detailed description of the user to whom we should appeal.
This would include not only the needs of the target consumer but also about their personality and values. Ideally, it would also show how the brand influences their lifestyle as such. To understand this further, we could look at the difference between people who follow Hotstar and PrimeVideo. While the age range is from 18-25, from the data collected we can conclude that people who hotstar are more inclined towards regional shows. At the same time, Prime Video audience enjoys shows and movies from around the globe. Both production houses can make use the segmentation information to create personas and generate content appealing to those personas.
When potential customers feel seen, heard and understood, miracle happens. They believe that your products work for them and decide to buy from you. It is nothing but trust and understanding that allows your users to bond with your brands. And this can be achieved through personas.
Wondering where you can create personas to maximise your outreach of marketing?
This is where we come to your rescue.
To create the most accurate persona for your product, we use real-user survey of the users to help brands find the ideal users. The truth is, the more specific your persona is, the more beneficial targeting will be. And we, at Whoofey, does exactly that. Here, we make use of A.I algorithm will generate the audience persona of your brand. The persona can be then used to address the need of the users as well as bring changes in your marketing strategy. Along with audience persona, we also measure customer experience and provide you with analytics data of the user. This would help you make your brand reach the right audience successfully and efforlessly