How to Segment a Market
Download as PPTX, PDF10 likes16,411 views
Market segmentation is the process of grouping markets based on similar characteristics, which helps in targeting and positioning brand offerings effectively. The article outlines four key steps in the segmentation process: defining markets, mapping them, understanding audiences, and creating segments. Clear and meaningful segmentation is crucial for tailoring marketing strategies and ensuring effective communication with different market groups.
How to Segment a Market
- 1. How to segment aMARKETCreated by SimplyDigitalMarketing.com
- 2. What is MarketSEGMENTATION?Segmentation is the process of grouping together markets who have similar characteristics, needs and buying styles.Markets can be consumers/customers/businesses/individuals/groups or a mixture of many.
- 3. Why segment yourMARKETS?Many reasons; here are two1. Having well segmented markets sets the foundation for who you target and how you position your brand, products and services to them.(Segmentation, Targeting, Positioning- the STP process)2. Quality segments gives you a chance of understanding how they might respond to your marketing activities, thus you can tailor your activities and messages accordingly.
- 4. Stages ofSEGMENTATION4 steps to start you off...There is no substitute for comprehensive segmentation, however these 4 high level steps should help start you off in the right direction: Define your market(s)Map your market(s)Understand your audience(s)Form your segments (B2B, B2C, Both)
- 5. 1. Define yourMARKETSGives clarity and focusFor each market, answer the following: What is the market?
- 6. What is that market’s need?Note: You need a clear set of boundaries for each market; for instance, geographic area. Your markets should be broad, yet specific as there could be a number of ways in which to satisfy your audiences needs (not just yours).
- 7. 2. Map yourMARKETSHelps you understand the buying points Map out your suppliers, distributors, retailers, contractors, final users and so on.Plot out any decision points and break down of stock
- 8. 3. Understanding yourAUDIENCEHelps you understand the touch pointsAt what points do your audience come in contact with your business during the buying process?
- 9. 3. Understanding yourAUDIENCEUnderstand What, Where, When, How and Who?Develop micro-segments on what is bought, where, when, how and by who. You will end up with 10’s of micro segments.
- 10. 3. Understanding yourAUDIENCEWho are the decision makers and influencers?Split out your influencers and decision makers. They will need different messages.
- 11. 4. Segment byCONSUMERCustomer/Consumer groupingGroup your decision makers and influencers as appropriate. Could be by demographic, geographic, psychographic, behaviouristic* Based on 8 class levels
- 12. 4. Segment byBUSINESSBusiness groupingGroup your target businesses as appropriate e.g. Sector, Private, Public, Size, Location, Company age
- 13. Criteria forSUCCESSHow you qualify your segmentsYour segments should be:MeasurableAccessibleSubstantialUniqueAppropriateStableSource: CIM The Marketing Planning Process
- 14. A FinalWORDThe segmentation process is arguably the most challenging, but insightful of all marketing tasks. This presentation only scratches the surface and further reading should be doneon each stage.Marketing Plans by Malcom McDonald and Hugh Wilson has an excellent section on segmentation.
- 15. About USFree Digital Marketing Resources and insights!WHO WE ARE Passionate Digital Marketers with years of academic and business experience. WHAT WE DO We are a leading Digital Marketing resource, inspired by simplicity and dedicated to keeping you up to date with SEM, VSEO, Social Media, E-Media and Display Advertising and lots more! Our site is packed full of free, useful stuff, for academics and professionals so please pay us a visit at:www.simplydigitalmarketing.com
- 16. InformationREFRENCESPhil Megicks, Ray Donnelly, Graham Harrison. (2009) The Marketing Planning Process. Elsevier, London.