Demographic, psychographic, behavioral, and geographic segmentation are considered to be the four main types of market segmentation, but there are also many other strategies you can use, including numerous variations on the four main types of market segmentation. For example, the four types of segmentation are: demographic, psychographic, geographical, and behavioral. These are common examples of how companies can segment their market by gender, age, lifestyle, etc. The main advantage of demographic segmentation is that this information is easy to obtain, for example, through the use of a survey or social media analysis.
Use this data to understand why people buy from you or refuse to buy from you and what type of content they interact with the most. For example, members of the same demographic may react differently to ads. Add psychographic targeting to this data and you'll understand why customers don't respond to posts. This Company Effectively Uses Behavioral Segmentation.
For example, sports fans see Nike shoes and clothing as world-class stars. They are associated with success and fame; they will certainly buy the same sneakers that their idol wears. An example of psychographic segmentation can be seen in the collaboration between the Los Angeles Lakers basketball team and Beyond Meat. The advertising campaign aimed to attract the attention of those interested in sports.
Beyond Meat is a plant-based meat company, and its collaboration with NBA players has focused on creating content that educates the public about healthy eating. Geo-targeting can be a subset of demographic segmentation, although it can also be a type of targeting in its own right. Create different target customer groups based on geographical boundaries. Because potential customers have needs, preferences, and interests that differ based on their geographical location, understanding the climates and geographic regions of customer groups can help determine where to sell and advertise, as well as where to expand your business.
Firmographic segmentation is similar to demographic segmentation, except that demographics look at individuals, while firmographic data looks at organizations. Firmographic segmentation would take into account aspects such as company size and number of employees and would illustrate how addressing a small business would differ from targeting a corporate corporation. Behavioral segmentation divides markets by decision-making behaviors and patterns, such as buying, consuming, lifestyle, and use. For example, younger shoppers tend to buy bottled body wash, while older consumer groups may lean toward bars of soap.
Segmenting markets based on buying behaviors allows marketers to develop a more specific approach, since you can focus on what you know and are therefore more likely to buy. Psychographic segmentation considers the psychological aspects of consumer behavior by dividing markets according to consumers' lifestyles, personality traits, values, opinions, and interests. Large markets, such as the fitness market, use psychographic segmentation when they classify their customers into categories of people who care about healthy living and exercise. Your local sporting goods store could identify a large number of families buying youth soccer pads each fall, or a greater margin of success selling bicycles among the 18- to 34-year-old crowd.
Psychographic segmentation organizes customers based on what they prefer and what they value. Other indicators may include variables such as lifestyle, attitudes and interests. Market research firms use a combination of these variables to create proprietary market segments, which are generally only available with a subscription. The purpose of market segmentation is not only to help you reach your audience, but also to allow your customers to see the true value of your brand through marketing that speaks to them, and in doing so places you well above your competitors.
If campaigns are combined with strong calls to action, marketing campaigns will be a powerful tool that will direct your target market segments to your sales channels. Market segmentation allows you to recognize these needs and market directly to them, without wasting messages. Your marketing is focused on the needs of your customers, your research and development can focus on meeting those needs, your spending will be focused on achieving them, and you won't be wasted on misguided marketing and planning. By understanding your market segments, you can leverage this segmentation in product, sales, and marketing strategies.
This smaller target market allows your marketing and sales teams to select the best possible experience for the most common segments of your audience. Similarly, your research on segmentation can help you recognize areas of the market that you haven't considered before and help you develop a market penetration strategy. With this information, you can target your products and services to these market segments, creating marketing messages and advertising materials that fit the criteria of the segment. Forget spreadsheets: choose market segmentation software to measure and streamline your marketing strategy; as you grow, technology will scale with you.
Market segmentation creates subsets of a market based on demographics, needs, priorities, common interests, and other psychographic or behavioral criteria that are used to better understand the target audience. When your company wants to enter a new market or look for growth opportunities, market segmentation can help you understand sales potential. So, as you can see, there are different types of marketing segmentation that you can choose from to find and define your target market to effectively promote your product or service. After all, your targeted marketing will allow for a better return on investment and you'll waste less money on marketing that reaches the wrong audience.
Market segmentation allows sellers to focus on key market categories, creating specificity and knowledge that builds trust and increases their credibility with buyers. A marketing strategy should be developed after a detailed analysis of the market and its segmentation. . .