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Importance of Marketing Campaigns and Customer Segmentation

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Importance of Marketing Campaigns and Customer Segmentation

What is market segmentation?

Market segmentation involves dividing a large homogeneous market of customers into clearly identifiable segments. Customers are divided based on meeting certain criteria or having similar characteristics that lead to having similar product requirements. Sections are created by customers who respond similarly to marketing strategies. They share common interests, needs, requirements, and demands.

Most companies do not have enough resources to target the mass market. That’s why they need to target the specific market segment where their product is needed. They divide the market into similar and identifiable segments by market segment.

What types of market segments can a company have?

  • Geographic – Based on land, countryside, or metropolitan area.
  • Demographic are based on age, gender, income, occupation, education, and nationality.
  • Psychographic – based on social status, lifestyle, and personality type.
  • Behavioral-based on product intensity of application, brand loyalty, user behaviors, price sensitivity, and acceptance of technology.

Demographic segmentation

This is the most common type category. Target visitors are divided based on age, gender, occupation, education, income, and nationality.

Demographics is the easiest way to divide the market. Mixing the population segment with another type of market segment can help further narrow your market.

It is easy to gather the information needed by the population and it does not cost much for a company to obtain it.

For example, body washing is a common product divided based on population. Generally, you will see body wash for women and body wash for men.

Behavioral segmentation

A company can divide its market based on consumer behavior. Allows you to create a specific message that accommodates those behaviors by dividing your target audience based on their behavior.

Geographic segmentation

This includes dividing the market by location. Although this is the basic form of division, it can be very useful. By knowing where a customer is, a company can better understand the needs of their customers and companies can target customers through location-based advertising. You can categorize a category based on location, such as city, district, zip code, or country. But you can also identify customers based on the climate in which they live or the population density in which they live.

Psychographic segmentation

Although this type of category is very similar to the population category, it deals with traits related to mental and emotional traits. The Psychology Division divides a group of clients based on their personality traits, values, interests, attitudes, and lifestyles.

Demographics can integrate well with psychology. If you do not like sending messages to your population, you can try adding psychological information. This is psychological information that tells you why people buy or do not buy a product or service.

What are the benefits of market segmentation?

The marketing division makes it easy for marketing teams to create more targeted and effective marketing campaigns and programs.

We have outlined below the many benefits of understanding and defining market segments.

Greater company focus

Once a company identifies specific market segments, it helps them focus on which segments they want to target through specific products/services/content/blogs and campaigns. When a company focuses on specific segments, they make sure to target the right segment with the right product looking for the best ROI.

Better serve a customer’s needs and wants

Having limited segments enables companies to meet different customer needs by offering different bundles and offers. Different forms and advertising activities will be applied to different categories based on the needs/preferences and characteristics of those categories.

Market competitiveness

When a company focuses on a particular segment, its market competitiveness increases. This can lead to higher ROI. The company focuses on specific segments and learns everything they need to know about that segment, marketing their products to them.

Market expansion

With the previously discussed geography segment, the market expansion is immediately possible. Once a company understands its divisions and understands how to market a division in a particular location, it can immediately expand to another location nearby. If the segment is population-based, the company can expand into that segment with the same products as soon as they know their segment.

Targeted communication

While the product features and benefits are the same, companies need to target specific communications segments.

Why market segmentation is important?

When the market segment is used by marketers it simplifies the planning of campaigns as it helps the company to focus on certain customer groups instead of targeting the mass market. Helps marketers to be more efficient in terms of division, time, money, and other resources. The market segment allows companies to learn about their customers. They have a good understanding of the customer’s needs and preferences so they can campaign according to the customer segments where the products can be purchased.



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