Online business buying and selling is starting to focus on creating a brand image of the products they sell and communicating it to customers. To improve brand image, an entrepreneur must have the right strategy. Market segmentation is one strategy that you can use to plan brand marketing of the products you sell. By knowing market segmentation, you will more easily get big profits, make customers happy with the products offered, and print better performance from competitors.
Market Segmentation, Strategic Strategies to Streamline Your Business Marketing Business
Define Business Vision & Mission
Market segmentation is a step taken to divide your customers into segments or groups based on the quality and personality of the customer in general. There are many ways you can do to divide customers into groups. Therefore, you have the opportunity to create your own business market segmentation and of course it can be different from competitors’ market segments.
By dividing customers into smaller groups, you can target customers easier and better than using just one strategy for all your targeted customers. This will also create a better user experience for each customer type of a segment. Customers are also expected to be more happy to continue shopping at your store.
The purpose of market segmentation is to produce higher sales volume, by grouping consumers is the best thing to know their needs. Market segmentation also allows you to develop products at a lower cost, because you can immediately improvise your products according to the specific consumer groups desired. This is very effective than trying to provide many products to many groups.
If you have found the right pattern for market segmentation, the marketing team only needs to launch its efforts to implement a regulated market strategy. A popular way to manifest market segmentation is by marketing via the Internet, using online advertising such as Facebook Ads or Google AdWords.
Benefits of Applying Market Segmentation
Nowadays, customers who like to shop online want to get a shopping experience according to their personal personality. A study results say 64% of online customers want to get offers according to their personalities. If they don’t get it, 52% of them will choose to switch to another store. This explains that market segmentation strategies are very influential in order to keep customers shopping at your store. Here are other advantages of applying market segmentation:
a. Save Time and Costs
Instead of using one marketing strategy for all types of customers, market segmentation can help you to serve marketing efforts for a segmented customer group. This means you will not waste time and money on ineffective campaigns, because these efforts are carried out based on customer data.
b. Build Better Relationships With Customers
The process of market segmentation involves you and the marketing team to continue to learn more about your customers.
c. Helps Identify Strengths, Weaknesses, and Opportunities from Your Marketing Strategy
Customer segmentation can also show you how a brand or brand is performing and the company’s campaign results. You can see which products are the most popular among customer segments. You will learn which parts of your strategy are strong, which ones need to be improved, and how you can compete better against your competitors.
4 Market Segmentation Categories
There are several categories of market segmentation, namely demographic, geographical, behavioral, and also psychographic. Following is an explanation of the four main categories of market segmentation:
Market segmentation based on demographic maps is when you divide customers into groups based on their demographic information, such as: age, income, gender, education level, single or married, race, position, religion, and more. This type of segmentation is most popular because it is the easiest and most reliable type of process.
Market segmentation based on geographic maps is when you separate customers based on where they are.