Market segmentation considers the differences between individual consumers and target-specific groups. It is crucial in the successful targeting of consumers as well as competing in a highly competitive market. The implementation of a distinguished marketing approach leads to multiple benefits, including the efficient use of resources, helps with effective branding, and decreases operating costs and advertising circulation waste.
In the approach to market segmentation – research, customization, and effective marketing and communication strategies are essential components. In this article, this three-step approach to market segmentation is further elaborated in detail.
A. Research
On the emphasis of segmentation, research is the most critical factor as it is necessary in order to gain a better understanding and later appeal to a particular group. Data collection in the research process can include a wide range of tools, including telephone surveys, interviews, mail-in questionnaires, and even consumer diaries, amongst others. What is important to realize is that significant investments are required for this type of research to convert potential consumers to future consumers.
Conduct extensive market research on the population of interest and how they make purchasing decisions
Consider an array of factors or categories: economic, lifestyle, cultural [habits, values, preferences, norms, and traditions of representatives of one society], psychological, etc., that are affecting consumer decisions.
2. Research the product or service offering
Develop a clear understanding of the nature of the product and how to successfully position the product offering, service, or brand in the marketplace.
B. Customization
Customize offerings based on customers’ wants and needs.
Engage in the process of audience construction, selecting whom to target and how to do so in the most effective manner.
Give particular attention to the market segment and continuously strive to find ways to enhance and customize products and service offerings as the marketplace changes.
Modifying the business department organization in accordance with such preferences is encouraged.
C. Design effective marketing and communication strategies
For a product to be successful, a marketing strategy and plan are needed.
Design effective marketing and communication strategies based on the unique demand for the product.
Modify and implement marketing mix variables and strategies to be able to integrate product attributes most preferred by consumers within a particular market segment and able to direct their purchasing behavior.
Clearly communicate the meaning of the product and the factors that will attract the specific audience.
References
Agha, S., 2001. Intention to use the female condom following a mass-marketing campaign in Lusaka, Zambia. American journal of public health, 91(2), p.307.
Blackwell, D., 2016. 40 Is the New 65? Older Adults and Niche Targeting Strategies in the Online Dating Industry. Social Sciences, 5(4), p.62.
Choe, W.J. and Ji, I., 2019. The Performance of Supply-Push Versus Demand-Pull Technology Transfer and the Role of Technology Marketing Strategies: The Case of a Korean Public Research Institute. Sustainability, 11(7), p.2005.
Ginsberg, B.H., 2015. Mixing pens and the future of diabetes drugs. Journal of diabetes science and technology, 9(4), pp.822-823.
Milchakova, N. and Reshetnikov, L., 2020. An Evolutionary Model of the Product Life Cycle: the Peculiarities of Adaptation. MS&E, 753(6), p.062028.
Nagyová, Ľ., Rovný, P., Stávková, J. and Majchrovičová, Ľ., 2014. Assessment of the use level of direct mail in the V4 countries. Acta Universitatis Agriculturae et Silviculturae Mendelianae Brunensis, 57(6), pp.169-178.
Pomarici, E., Lerro, M., Chrysochou, P., Vecchio, R. and Krystallis, A., 2017. One size does (obviously not) fit all: Using product attributes for wine market segmentation. Wine Economics and policy, 6(2), pp.98-106.
Su, J.C., Wang, L. and Ho, J.C., 2012. The impacts of technology evolution on market structure for green products. Mathematical and Computer Modelling, 55(3-4), pp.1381-1400.
Vignesh Kandasamy, S., Madhu, A., Gupta, P.K., Niveditha, A. and Bordoloi, K., 2018. Location based advertising for mass marketing. International Archives of the Photogrammetry, Remote Sensing and Spatial Information Sciences, 42, p.5.
Zaggelidou, E., Tsamourtzis, E., Malkogeorgos, A. and Zaggelidis, G., 2013. The effect of marketing on dance activity. Journal of Physical Education and Sport, 13(2), p.220.