Market segmentationis the process of dividing your target market into distinct groups of buyers that require different products or a different marketing mix.
Importance of Setting Goals From a Marketing Standpoint
It is one of the steps that go into defining and targeting specific markets. Businesses that marmet specialty markets will promote their products and services more effectively than a business aiming at the "average" customer. By using market segmentation to communicate more effectively with your customers, you can write market segmentation business plan your business the marketing edge over competitors.
Your business must analyze the needs and wants of different market segments before determining your own niche.
Your opportunities to effectively market your business increase when you recognize the different needs and wants of segmented customer groups.
To be effective in market segmentation:. You can divide your target market into segments using a variety of factors. The bases for segmenting consumer markets include:.
Once write market segmentation business plan identified your target market, you can break that audience down into smaller groups based on these factors. When you create a detailed description of your ideal customeryou are likely to find that you need more than one persona to really identify the segments you are targeting. The following questions can give you a starting segmenyation for defining your customer segments and learning how to reach them.
The more you understand both your current and prospective customers, the better you write market segmentation business plan segment. Similarities can be broad factors like customers' age or income; they can also be as granular as where customers shop, where they research information, and how they found out about your business.
Eight Benefits of Market Segmentation
Large companies often segment their markets by write market segmentation business plan extensive market research. This research can be too expensive for small businesses to invest in, but there are alternative ways for a small business to practice market segmentation. To effectively segment your market without investing in private market research, you can learn about your customers through:. There are many reasons for dividing a market into smaller segments.]