What is "Market Segmentation"?
Market segmentation is the identification of groups of potential customers with similar needs, wants and behaviours.
Market segmentation is arguably the most powerful tool available for generating strategic marketing advantage.
Market segmentation activities focus around identifying different groups within the market that share similar needs, wants, behaviours or demand characteristics - targeting & positioning them to create better customer satisfaction.
Market Segmentation should insightfully identify groups of customers and potential customers by their Attitudes, Usage & Behaviour. Market Segmentation is the key to making better marketing decisions, building better marketing strategy and real competitive advantage... exactly why management should insist upon the best segmentation study possible!
Market Segmentation is the most powerful weapon in the arsenal of the Marketing Strategist.
- Leigh Cowan
Approaches to Market Segmentation - How Can the Market be Segmented?
SME's often fall victim to believing their market is significantly effected by demographics - limiting their opportunities.
Segmentation makes business decision-making easy!
Too many untrained marketers fall into the demographic trap, and never truly identify segments in their market. Almost every market has only 2 to 5 segments.
Don't be wooed by psychological theory which can be dangerous for larger businesses needing to secure sustainable competitive advantage.
Market segmentation identifies consistencies in buyer behaviour...it is logical to prefer to know what a buyer does, rather than what that say they will do.
A "market" is only a corral of market segments... IF you segments well, you WILL own a every segment you want to, within a market. Let us show you how!
Market Segmentation Analysis Leads to These Superior Marketing Outcomes:
- Selection of the optimal product portfolio to meet the needs of the marketplace.
- Development of superior, cost-efficient advertising & promotion.
- Improving long-term market position - image, customer satisfaction, competitive advantage and cost-effectiveness.
- Better corporate planning and development of marketing strategies.
Market Segmentation by Launch Engineering can help discover profitable paths to marketing advantage. Call us for market segmentation and market research advice.
Call 02 8011 4355 NOW. Request a Call by email
Market segmentation strategy: Advantages of a Market Segmentation Study
Market segmentation is the corner-stone of customer-oriented business strategy & planning, leading to sustainable competitive advantage, successful marketing management and control.
The purpose for segmenting a market is to ensure your marketing advertising, targeting & positioning focuses on the subset of the market that are most likely prospects. Market segmentation, done properly, generates the highest return for your marketing/sales expenditures. Depending on whether you are selling your offering to individual consumers or a business, there are definite differences in what you will consider when defining market segments.
Market Segmentation Creates a Four-step Path to Market Dominance:
1. Segment Identification - Identification and assessment of heterogeneous groups.
2. Segment Selection - Choosing attractive segments that are appropriate for the organisation to pursue.
3. Segment Targeting - Allocating marketing resources THE RIGHT WAY to fulfil the needs and wants of the prime target audience/s you have selected.
4. Positioning - Using your insight and understanding to manage the elements of the marketing mix so as to optimally meet the needs and wants of that segment.
If you are less than100% satisfied with your marketing results, ask for a Launch Engineering segmentation study now. help me segment
Understand Your Customers So You Grow Sales (and Profits) AND Customers Get Better Value!
Using our proprietary Customer Value Management process, Launch Engineering identifies meaningful and usable market segments using insight and extensive experience COMBINED with advanced academic knowledge: One client generated 22% growth in profits, AND identified better products to deliver to customers. This process is better for your Company AND better for your customers!
What to Expect from a Segmentation Study
A decent Segmentation Study delivers RELEVANT and SIGNIFICANT insights and knowledge for Management to make appropriate decisions on:
- Communications Strategy
- Pricing Strategy
- Distribution Strategy
- Product Portfolio Planning & Strategy,
- Branding Strategy, and
- New Product Development Strategy.
Segmentation studies let you identify:
- Which segment/s is/are your “bread and butter”,
- Which segments you are NOT strong in,
- Which competitors are eating up your market-share,
- What effect competitors have on your success, and
- What actions you can take that will improve your sales, marketability, and brand equity
The 5-Star Segmentation Process
1. Identifying the key problems, Issues, and Aspirations Relevant to You
2. Conducting Qualitative research to “anchor” your needs and wants with that of the market, and identifying the nature of the segments, the best perspective for identifying them (Frame of reference) and sketching out broad profiles for analysis by quantitative methods
3. Conducting the quantitative Analysis to determine size, strength, potency, significance, and customer value to you of each segment as well as the presence and competitive strength of your competitors.
4. Integrating proven strategic marketing models developed by leading business schools and FMCG corporations around the world, to create proposed strategic actions for your Management team to consider.
Why not Request a Market Segmentation that delivers...
- A tailored value proposition for each segment
- A picture of customers based on business drivers – theirs and yours
- Identification of priority segments
- Identification of higher value and higher opportunity segments
- Strategies for allocating resources based on agreed priorities
- Insights for developing sales approaches, targets and KPI’s
- Identification of HOT BUTTONS that allow you to improve advertising & promotional returns by fine-tuning messages to these segments
- Knowledge for sophisticating value propositions for each segment – as necessary
Request a Market Segmentation Briefing Form
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