One of the largest and first mistakes that is made in a marketing campaign is the lack of segmentation developed before a campaign begins. Most brands believe that anyone and everyone will be buyers of their products or services – this is simply not correct.
In fact, 85% of 30,000 new product launches in the US failed because of poor market segmentation, as stated by Harvard Business.
Marketing segmentation is a advertising approach that involves allocating a wide-ranging target market into divisions of consumers who have common wants and use for the applicable goods and services. Marketing campaigns are then pieced together to completely target their ideal customer profile demographics. This is what drives marketing success.
Why Should You Care About Market Segmentation?
Many mass marketing campaigns feature a single targeting trend for the entire public. By delivering segmented marketing campaigns, a more personalized product reach is achieved. A consumer is more likely to complete a POS if the product/service fits them as a buyer.
Mass marketing can make sales, it is just not as efficient of a process as market segmentation. Correctly using market segmentation allows you to better know your target customer, and allows you to associate your marketing efforts and messaging strategy to match what works for them.
Strategic Planning: Common Segment Attributes
Attributes are customer characteristics. They are used during the tactical planning phase, and are factors significant enough to alter your targeting. You won’t use all of these attributes for every promotion, but you should know them to better use segmentation.
• Decision Makers: Aligning your customers based on who decides to purchase your product or service.
• Behavioral: Grouping customers by product usage or buying history. This stage also factors in brand loyalty and the type of user who engages with your brand.
• Psychographic: Grouping your customers into cultural types, social status, lifestyle and personality types.
• Geographic: Assembling customers by a specific area, such regions of the country or state and urban or rural.
• Distribution: Gathering customers based on where they go to make the purchases of your product - online, store or through a catalog.
• Demographic: Dividing customers by religion, age, race, nationality, income level, gender, family size, language, etc.
Market Segmenting Best Practices: 4 Simple Rules
The process of marketing segmentation does not have to be difficult, it just takes time and research. It is important to organize and do your research upfront to truly determine your ICP, and the attributes that work for your product or brand.
Four Simple Rules for Market Segmentation
• 1. Do not create too narrow of a target segmentation, or you may be miss out on new buyer opportunities. Segment smartly!
• 2. Organize your brand into a market segment, not just your campaigns. Create your ideal customer profile as a whole.
• 3. Do not limit your segmentation to your local area. Think globally to avoid losing potential targets.
• 4. Complete a full scope of research, and do not rush into a half-formed segmentation target.
Market Segmentation with Visualmatic™
Visualmatic™ is releasing an Audiences segmentation feature that gives brands a single source solution to their targeting needs. As your app users engage with your app, information is measured to find the right demographics and attributes that fit your brand, products, and services. The segmentation can be implemented in the delivery of your mobile marketing campaigns. Use an app to drive traffic to a website and conversions to a brick and mortar location.
This is only a small piece of the Audience puzzle. Stay tuned for tomorrow’s article displaying the brand in-hand foundation for a brand to consumer marketing system.