Difference bases of market segmentation

1. StudyMafia.Org
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Marketing
Segmentation

2. Table Contents
• Definition
• Introduction
• Types of Marketing Segmentation
• Importance of Marketing Segmentation
• Mistakes of Marketing Segmentation
• Implementation of Marketing Segmentation
• Conclusion
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3. Definition
Market segmentation is a business practice
that brands use to divide their target market
into smaller, more manageable groups of
people
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4. Introduction
• The purpose of market segmentation is to
introduce a tailored message that will be
received successfully.
• This is advantageous for companies that may
have a product or service in the marketplace
that boasts multiple benefits or uses for
different types of customers.
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5. 5

6. Types of Marketing Segmentation
Geographic segmentation
Geographic segmentation targets customers
based on a predefined geographic border.
Differences in interests, values, and
preferences vary dramatically throughout
cities, states, and countries, so it’s
important for marketers to recognize these
differences and advertise accordingly.
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7. Types of Marketing Segmentation
Demographic segmentation
Demographic segmentation divides a
market through variables such as age,
gender, education level, family size,
occupation, ethnicity, income, and more.
This form of segmentation is widely used
due to specific products catering to obvious
individual needs relating to at least one
demographic element.
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8. Types of Marketing Segmentation
Psychographic segmentation
Unlike geographic segmentation and
demographic segmentation, psychographic
segmentation focuses on the intrinsic traits
your target customer possesses.
Psychographic traits can range from values,
personalities, interests, attitudes, conscious
and subconscious motivators, lifestyles,
opinions, and more.
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9. Types of Marketing Segmentation
Behavioral segmentation
Behavioral segmentation has similar
measurements to psychographic
segmentation, but instead, it focuses on
specific reactions and the ways customers
go through their decision making and
buying processes.
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10. Importance of
Marketing Segmentation
Customer retention
• For starters, those cohesive customer
segments will lead to great customer
retention.
• Capturing customers at the beginning of
a perfectly tailored customer journey
will provide an excellent brand
experience and increase the likelihood
that they will stay loyal to your brand.
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11. Importance of
Marketing Segmentation
Grow your business
• Market segmentation can not only help
you discover new ways to reach your
current customers but also help you find
new markets of potential customers that
you haven’t previously reached.
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12. Importance of
Marketing Segmentation
Lower spend rate
• If you know how to speak to your
customers correctly, you’re more
efficient with your efforts, which means
you spend less money. It’s as simple as
that.
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13. Mistakes of
Marketing Segmentation
Creating too small of segments
• This can be rather easy to do if you’re
trying to ensure that you have every
last detail included.
• If a segment is created too small, you’ll
lose the buying power of that group as
well as create a segment with non-
quantifiable metrics.
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14. Mistakes of
Marketing Segmentation
Not updating your strategy as your
customer base changes
• People change, and they can change
fast.
• It’s in your brand’s best interest to
refresh its strategy and resurvey its
customers from time to time.
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15. Mistakes of
Marketing Segmentation
Targeting the segment instead of the
money
• You may have segmented a large
customer base that aligns with your
strategy, but if that segment doesn’t
have the buying power or a legitimate
need for your product, then you won’t
have a positive ROI.
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16. Implementation of
Marketing Segmentation
• It’s time to put what you’ve learned to
use. Here are five steps that lay the
process out simply, plus the two
strategies that are most commonly
used to guide them.
• Once you’ve got these basics down and
you have a solid foundation for your
strategy, branch out, and make it
uniquely your own.
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17. Implementation of
Marketing Segmentation
• Concentrated strategy
As the name suggests, a concentrated marketing
strategy is when a company chooses only one
market to focus all of their time, money, and
efforts on.
• Differentiated strategy
On the other hand, a differentiated marketing
strategy is when a company focuses on two or
more markets.
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18. Implementation of
Marketing Segmentation
1. Define your market
Where does your brand fit within the
current market landscape? Is there a
need for the solution you promise to
provide? How large is the market? These
are all important questions to consider
when starting this step.
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19. Implementation of
Marketing Segmentation
2. Segment your market
This is where it gets fun. Decide which of
the four segmentation methods you’re
going to use, but don’t feel confined by
one segmentation method.
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20. Implementation of Marketing
Segmentation
3. Understand your market
Ask your target market the questions that
relate to the segmentation categories you
chose. You should get to know your target
market through and through at this step.
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21. Implementation of
Marketing Segmentation
4. Build your customer segments
Interpret the responses you received to
create dynamic customer segments that
are unique to your brand. Make sure that
you’re focusing on the buying power of the
segments and not creating any that are too
small.
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22. Implementation of
Marketing Segmentation
5. Test your strategy
Ensure that you have interpreted your
responses accurately by testing it on your
target market. Implement conversion
tracking early. It’s one of the best ways to
determine the effectiveness of your
strategy.
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23. Conclusion
• Market segmentation is a highly
effective strategy for every marketing
team.
• It proves to your customers that you
understand them by providing a tailored
message that resonates with specific
facets of their lives.
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24. References
◦ Google.com
◦ Wikipedia.org
◦ Studymafia.org
◦ Slidespanda.com

25. Thanks
To
StudyMafia.org