What is a consumer market segment?
To succeed in your business, you have to have a clear understanding of what your customers need. However, not all of your customers are the same. They may differ in age or gender or have vastly different values and interests. They may even use your products to satisfy different requirements. To appeal to your customers effectively, segment your target market so you can customize how you engage with them. Show
Demographic SegmentationThe most common way to identify a consumer market is by demographic segmentation, which refers to the criteria most businesses use to understand how groups of their target market are different from one another. According to NetMBA, the criteria for demographic segmentation includes:
It's essential to segment your target market by demographics because these criteria affect their individual needs. For example, a man in his early 30s has different preferences than a woman in her late 60s. If your business sells shoes, you cannot appeal to both demographic segments in the same way. The young man may be interested in athletic name-brand shoes, while the older woman may want comfortable sandals with arch support. The marketing you use to reach both demographic segments needs to take their requirements into account. In some cases, people from different demographics may have the same needs, which is why it's critical to understand your consumer on a granular level. For example, the customers of a bakery may differ in religion, nationality, education and occupation, but they may all desire the same baked goods and react the same way to the marketing. Geographic SegmentationAnother way to segment the consumer market is geographically. Sometimes, this is seen as a subcategory of demographic segmentation. Many businesses and marketers treat this category as major because customers’ geographic criteria can significantly affect their needs as consumers. Geographic segmentation elements include:
Consumers from different geographic areas have varying needs. An online retailer who sells swimwear to customers across the United States and Canada may need to vary the marketing to those consumers who live in colder climates. Many parts of Canada and the northern United States have a beach season that only lasts for a few months. As a result, the retailer needs to focus promotional efforts during this time in those areas, while in the southern United States, they can run year-round promotions. Similarly, a corner store that operates in a rural area with a sparse population uses different marketing and sales tactics than a corner store on a busy metropolitan street with a high population density. In these market segments examples, businesses need to understand how geographic segmentation criteria affect the needs of their consumers. Psychographic SegmentationWhile demographic and geographic segmentation look at many tangible criteria, psychographic segmentation is about how consumers live their lives. Some of these qualities are intangible and difficult to research. Conduct customer surveys to learn more about their psychographic attributes, which include:
A consumer’s psychographic qualities affect which products and services they buy. For example, consumers who strongly value environmental sustainability may look for products that are manufactured using recycled materials. They may choose to buy only from businesses with a formal program for reducing their carbon footprint. Some consumers only support companies that are in line with their political or social beliefs. For other consumers, their interests and activities determine the types of products and services they buy. For example, an avid basketball player may want to buy basketball shoes and jerseys, while a musician may be interested in specific instruments. By understanding a segment's values, attitudes, interests and activities, businesses can market the right products to them in the right way. Behavioral SegmentationWhile demographic, geographic and psychographic traits include specific qualities about your customers and their needs, behavioral segmentation is about how your customers feel about your products. According to NetMBA, this is a good starting point for market segmentation because it is directly related to your business. Behavioral segmentation includes:
The way you market to a loyal customer is different from how you market to someone who knows nothing about your business. Use behavioral segmentation to understand what your consumers need and what they think of your business. If you approach loyal customers with basic information about your products, they may feel insulted you think they don’t know it already. Similarly, if you don't begin by talking about the benefits of your product to a new prospect, they will not know what makes your solution better than a competitor's. Creating Effective Consumer Market SegmentsThere are endless ways to segment your consumer markets, so how do you know which segments to use? Segmenting your target market ineffectively may mean your marketing message does not resonate with your audience. Qualtrics suggests doing a market segment analysis to see if you have the right criteria. Consider these five elements when segmenting your market:
Using Market Segmentation for Best ResultsWhen you've developed segments of the consumer market you want to target, you must put your plans into action. Single Grain recommends creating buyer personas and ensuring your marketing and sales teams are familiar with them. Develop personalized messaging for each persona that takes into account their pain points and challenges and includes their needs. Where possible, use personalization to show your consumers you understand them and can help with their problems. What is customer segment example?Examples of segmentation by demographic include: Age, gender, income, education, and marital status.
What are the 4 types of market segments?Demographic, psychographic, behavioral and geographic segmentation are considered the four main types of market segmentation, but there are also many other strategies you can use, including numerous variations on the four main types. Here are several more methods you may want to look into.
What is the meaning of consumer market?A consumer market is a market when individuals purchase products or services for their own personal use, as opposed to buying it to sell themselves. Consumer markets consist primarily of products that people use as part of their everyday lives.
What are the 3 segmentation consumer markets?The three main types of market segmentation are demographic, psychographic, and behavioral. Demographic segmentation divides people based on their age, income, education level, and occupation. Some examples of companies that use demographic segmentation include insurance providers, healthcare companies, and banks.
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