As a micro-, small or medium business owner or solo-entrepreneur you may be wondering how to segment your market to positively influence consumer behaviour. If so, then please watch the following short video presentation, as I hope that it will be of great benefit for you in the creation of your target market segments.
According to Suttle (2015) “Market segmentation is the process of dividing an entire market up into different customer segments. Targeting or target marketing then entails deciding which potential customer segments the company will focus on.”
In order to reach the ‘right’ customer or client, you need to segment your target market very specifically, so that the products and services you offer and any form of marketing communication you create and share are the right fit for each group of prospects.
The key segmentations are: Geographic, Demographic, Behavioural, and Psychographic.
Let’s have a closer look at market segmentation:
- Geographic segmentation for example could be to choose prospects in a specific region or place, for example shoppers who visit major supermarkets in the United Kingdom or the US, for instance or you segment in terms of regionally, nationally or internationally
- Demographic segmentation for example refers to the age, race, sex, and economic status, level of education, income level and employment
- Behavioural segmentation refers to many aspects of your prospects, including:
- Occasions people buy,
- the Benefits they try to pursue,
- the Usage Rate, for example Heavy, Mediumor Light usage),
- the User Status for example non-users, potential users, first-time users, regular users, or ex-users of a product,
- their Loyalty Status, for example ‘Hard core loyals’ always purchase the product or brand, ‘Soft core loyals’ who sometimes purchase another brand, or ‘Switchers’ who tend to buy the brand available to them at time of need, or that which was on sale, and
- the Buyer Readiness Stage, for example their Awareness, Knowledge, Liking, Preference, Conviction, Purchase of a product or service
- Psychographic segmentation refers to the prospects social class, which can be grouped into and based on the occupation of the ‘Chief Income Earner’ (CIE), their lifestyle, for example values, beliefs, opinions, and interests and personality characteristics
Marketers can or should at times segment their markets into even more specific audiences to reach consumers most effectively, Business Software Inc. (2014) highlights for example;
- Segmentation of Needs, for example reduction of expenses, cash flow, service delivery or the need for education, social trends and
- Factors that segment prospects, for businesses and individuals, for example climate, language, ability to make quick purchase decisions, or physical size of the product, social status or time related factors.
I hope you have enjoyed this short presentation and if so please Like, Share and Follow my blog and YouTube channel.
I wish you all the Best,
Riley, J (2015) Market Segmentation. Online at http://beta.tutor2u.net/business/reference/market-segmentation [accessed 20 January 2016]
Suttle, R (2015) Define Market Segmentation & Targeting. Online at http://smallbusiness.chron.com/define-market-segmentation-targeting-3253.html [accessed 20 January 2016]