We strongly believe that having a small market is not bad, but only if it’s part of a larger market and tracked and analyzed under a precise and air-tight market segmentation strategy.
The process of chipping down the primary market into smaller, more approachable pieces helps marketers with better decision-making. It rallies vital data such as a specific market’s behavior, belief, preferences, priorities, requirements, and even geographical information.
Afterward, the marketing geeks smilingly dash through the data and come up with a target-oriented highly-personalized mark segmentation strategy that’s bound not to miss, or fail for that matter.
What Type of Market Segmentation Coca Cola Did?
Coca-cola is a prime example of how a well-thought marketing segmentation strategy puts a brand on everyone’s radar.
As a company of frame-defining marketing ideas, running controversial and edgy ads and campaigns has become something of a habit for the Coca-cola’s marketing team. However, what they accomplished as part of their “target market segmentation” truly stands out.
The guys-with-plans figured out that an expansion of products would happen if the very-dissected product diversification were the goal. As a result, new drinks and beverages were introduced under the label of Coca-Cola; a happy consequence that no one could get enough of it!
A simple psychiatric evaluation of the market could lead to rolls of ground-breaking and exciting products and services, an excellent demonstration of market segmentation and its effects. To this day, Coca-Cola’s move still remains one of the most refreshing and lip-licking marketing strategies to ever knock the socks out of feet.
Different Types of Market Segmentation
We mentioned one out of many types of market segmentation methods put into use by Coca-Cola. Yes, you guessed it correctly. It’s psychiatric segmentation. Here are the rest:
· Behavioral Segmentation
· Demographic Segmentation
· Psychographic Segmentation
· Geographic Segmentation
· Firmographic Segmentation
Benefits of Market Segmentation
1. More Effective Marketing Tactics & Strategies
Market segmentation helps you in tracking down the accurate society for which your marketing efforts will bear more rewarding fruit.
There are tons of different markets and marketing tactics and strategies out there, and picking one is neither easy nor always successful. This is where market segmentation truly shines.
Knowing how the market reacts to certain strategies gives you the upper hand since you know what to expect. And, hence, choosing the right marketing tactic/strategy would be a walk-in-the-park.
2. Personalized Marketing (Targeted)
Categorizing the groups spills out intelligence over a specific market. This information includes behavior, location, age, and etc.
Realizing why the market acts the way it does and what factors affect the decisions gives you the opportunity to micro-manage marketing strategies accordingly. This way, your message going across a specific group spreads a scent of personalized and well-welcomed aroma that would sit perfectly with that particular market.
3. Low-costing Leads With Faster Responses
Digital platforms like Facebook or Instagram offer a straightforward golden ticket to like-minded markets. You can approach these groups through marketing segmentation and pinpointing the profitable ones from the rest.
These platforms also offer safe and fast passage for brand-to-audience message delivery. After identifying market values, you can deliver your mission statement and goals directly to them.
4. Finding Out Niche Markets
In most bigger markets reside smaller niche markets waiting to be unfolded. Yet again, market segmentation arms you with the means of locating these groups.
Besides the handy “Indiana Jones” map, market segmentation can also define newer and better ways to serve the existing markets. Quite a lot of secret markets go undiscovered because of distractions and a lack of proficient tactics.
5. Broader Brand Identity Outreach
When you understand what each market needs, you can build a more affectionate and deeper relationship with it.
The point here is to create a heart-to-heart communication bridge with the audience, a personalized offering that resonates with them. This message will hold such a strong emotional message that people won’t forget your brand and mission, never and ever. They feel as though in an everlasting bond with your product or service.
6. Amplifies The Necessity of Business Data Application
As described by “Bython”:
“Every business at present generates data and can access data across industries. Companies have the benefit of using post and prior hoc methods in segmentation. Even more data visualization can also be used to improve segmentation.”
7. Staying Fresh!
Although harmful at its core, still we’re witnessing the bombardment of customers by ads and information. This can lead to market and customer confusion.
However, market segmentation can nullify the challenge by bringing in new information. It’s a highly efficient marketing strategy to continuously assess the audience and extract the much-needed new data that keeps the marketing efforts fresh and up-to-date.
Difference Between Market Segmentation & Target Marketing
Although both terms come from the same family of marketing strategies, they fall apart in more important parts and details, especially in today’s competitive eCommerce environment.
Market segmentation focuses on classifying groups based on behavioral or demographic contexts. On the other hand, target marketing focuses on distributing products and services to a marketing-defined group of selected customers.
The first, and probably the most fundamental difference, is the order of occurrence. For target marketing to happen, there’s primarily a market segmentation procedure that needs to take place. It’s pretty visible, isn’t it?
Furthermore, the two methods serve two different purposes. In a way, it seems that market segmentation works in favor of target marketing. As the market segmentation effort takes shape and introduces smaller more-approachable segments, target marketing can begin aiming at sales.
Another differentiation stems from a perspective standpoint. Market segmentation studies the market as a full-bodied entity while target marketing shifts attention to the smaller, less-crowded markets visible to it.
Market Segmentation vs Customer Segmentation
The debate of market segmentation vs. customer segmentation is the fight between detailed classification and archetype realization. With customer segmentation, we’re diving into a more specific area where buyer persona is the goal. Instead, market segmentation talks about the market as a whole and how to dismantle it into tinier more-recognizable groups.
When talking about building a buyer persona, market segmentation won’t help out a lot. It feels like finding a needle in a neatly arranged haystack, a treacherous and almost impossible thing to do.
Customer segmentation depicts the perfect customer, whereas market segmentation shows the desired markets. Both of them have to be brought about for a marketing strategy to function effectively and seamlessly.