Why Market Segmentation Is Important For Your Business

Marketing segmentation is a vital part of any marketing campaign as it helps you to gain a greater understanding of your customers needs. This is conducted by internet marketing agencies as part of an overall strategy in which the aim is to maximise leads and of course, sales.

What is market segmentation?

This is a process in which customers are divided or 'segmented' into separate groups based on shared likes, dislikes and needs. Your business can then target its products or services to each particular group of customers in order to maximise sales.

It is important to learn as much as you can about your customers in order to achieve the best match between their needs and your products or services. Use the 4 P's - price, product, place and promotion to help with this match.

Purpose of marketing segmentation

The aim is to avoid a 'scattergun approach' to marketing by targeting your messages at specific groups of customers. This means different messages for different groups. This can then be used across all your marketing material, campaigns and website.

Customers like to receive information that is relevant to them and their needs which is the reason for carrying out market segmentation. But it is also helps you to determine whether they are high, medium or low value customers.

High value customers buy expensive items on a regular basis whereas low value customers make the odd purchase now and again. Medium value customers are in between these two.

Understand how customers make a purchase

Customers will use a variety of criteria before choosing which company to buy from. They will base their decisions on benefits, price, convenience and lifestyle. In other words, do your products or services give value for money?

Don't assume that customers base their decisions on price only. Yes, price is important but the cheapest option is not always the best. Quality of products (or services), reliability, reputation, trust and customer service are equally as important.

If a customer is presented with two similar products or services then they will choose the one which fits in with their values and needs. And this isn't necessarily the cheapest.

Criteria for segmentation

How are customers placed into different groups? This is done using a set of criteria which are based on personal characteristics:

- Age

- Gender

- Occupation

- Location

- Interests/hobbies

- Income

Also consider size of household, spending habits and online behaviour.

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Adaptive Consultancy is a London-based digital agency company specialising in website design, eCommerce, and internet marketing, including SEO, PPC and SMO. For more on internet marketing services visit http://www.adaptiveconsultancy.com/internet-marketing-consultancy

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