When looking to build an optimal market segmentation strategy, many questions arise, such as … Who are your customers? Is my target consumer a male or female? What are their behaviors? Your marketing strategy must be custom built to utilize these multiple customer variables in the optimization of your strategy.
Here are 7 ways to customize your strategy for customer segments
1. Geographical Segmentation
Geographic segmentation is the most common form of market segmentation. Companies use this type of segmentation to attack a certain geographic areas. An example could be the brand only selling in one specific region or market.
2. Distribution Segmentation
Different markets can be reached through different channels of distribution. A company may sell their products or services to different markets under different brand names, this may grant each channel a unique brand to gain distribution within that channel.
3. Media Segmentation
Although not commonly used, media segmentation can be used to segment as well. Different types of media tend to reach different audiences. An example would be a company spending most of their funds on the television medium to dominate that segment of the market that watches television regularly.
4. Price Segmentation
Price segmentation is very common and widely practiced. Many companies often sell multiple products and segment by looking at price range, or customer income range. Some consumers may be price sensitive and look for value products where higher income groups look for the premium products.
5. Demographic/Firmagraphic Segmentation
This type of segmentation includes, gender, age, income, housing type, education level and other demographic variables for customers. For companies and employees it can include annual revenue, number of employees, industry, department, title, and other “firma-graphics.”
6. Behavioral Segmentation
Behavioral segmentation divides its consumers based upon their behaviors. Some common forms of behavioral segmentation are benefits sought after a product or service, loyalty to a particular brand, and usage rates of products and services.
7. Psychographic Segmentation
Psychographic segmentation is analyses of consumer attitudes, values, emotions, perceptions, beliefs, and interests. Some examples may include things such as lifestyle patterns, opinions and interests.
We hope this helps you find an optimal market segmentation strategy for your unique customer base. By correctly analyzing your customers by the above 7 areas, you can properly customize and optimize your market segmentation strategy.
To learn how SVRG can help your company optimize its segmentation strategy