Segmentation is a master tool for marketing, but what exactly is it? How is it applied across different industries? We have simple answers to the complex questions with big brand examples.
What is segmentation?
Taking a mass group or unit as a whole and separating into multiple clusters based on specific traits, attributes, or demographics. This creates a more relevant campaign, as not all services or products can fit the public as a whole.
1. Brand Segmentation: Volkswagen
One path that segmentation uses is within specific brands themselves. One large company that is known to have a certain image can create a new brand for an item that fits a different type of image. A great example of that is Volkswagen. They have instantly identifiable vehicles that fit a specific scope of people. They also own the brands: Lamborghini, Porsche, and Audi. These all cater to different demographics of people that utilize vehicles for different purposes. If Lamborghini started selling Volkswagen type vehicles – people would get confused. Creating segmentation in brand gives a tighter hold on the demographics each series will appeal to and maintains the quality of the image they have created for each brand.
2. Competent Segmentation: Nike
Segmenting the product a brand produces to fit an ideal customer profile increases the recall value of a marketing campaign. Nike used this segmenting option when they released their Fitness Revolution product line based on characteristics and motivation of their buyers. Research went in to the discover of who their customer was, what they wanted, and how they wanted it. Competent segmentation is a key to creating customer retention.
3. Geographical Segmentation:
One of the smartest moves a brand can make is determining marketing strategy based on geographical information of its consumers. People in different locations will have different interests, buying patterns, and market choices. Determining the location behavior and buying patterns of people in specific areas will create a
lasting relationship between brand and buyer. For example, McDonalds offer options of grits for the South and Southeast areas, while the East and West coastlines offer seafood selections. Location-based marketing and product delivery ensures a collective result between marketing campaigns and final return of investment.
Segmentation has the power to fuel relevancy within marketing efforts and can catapult marketing campaigns when used to its full advantage. Scope out what sets your buyers apart and capitalize on those attributes. BoardActive releases Audience segmentation August 2nd, 2019 for a full measure of location-based mobile marketing delivery options. Stay tuned for our next article highlighting avenues of marketing benefiting from the Audience feature.