Market Segmentation is the systematic, data-driven classification of potential customers into different segments having similar interests, wants, and needs. This classification allows Web Design and Development companies to create targeted content to attract the most viable customer pool. There are four major types of Market Segmentation, as follows,
The target customers or audience is categorized by their age, gender, profession, annual income class, education, nationality, and ethnicity.
This is the basic classification used by B2C businesses. In B2B business models, the consumers are classified based on the Industry they belong to, the size of the company, and the nature of work. This is termed as Firmographic segmentation. Data for demographic segmentation is easily gathered through basic data collection from marketing sites.
A luxury couture brand like Prada targets high-income customers, from the creamy layer of industrialists and celebrities to sell their clothing line.
The customers are classified by their personal attributes like personality traits, value and belief systems, professional and personal attitudes, lifestyle, priorities, and motivations.
These are purely subjective qualities, gleaned from extensive research on each individual. The Psychographic segmentation data is analysed from browsing and previous purchase history.
Tjori is a high-profile handicraft brand from India, dealing in authentic handcrafted Indian metal jewelry, fabrics, and ethnic wear. Each piece is individually handmade and thus is expensive. The Web Design and Development Company they employ identifies customers who can afford their products, and have a penchant for preserving Indian heritage, through supporting artisans.
The customers are classified by their behavioural patterns like spending habits and interactions with brands.
Businesses take advantage of these habits to create targeted marketing for individual customers. The Web Design and Development Companies create very specific Call to Actions for these customers that will have guaranteed conversions.
A high-end vehicle manufacturer like Jaguar will urge their high profile customers to upgrade their vehicles to a newer model after a certain period.
There are several sub-classifications like Value Segmentation, Seasonal Segmentation, Lifestage Segmentation, Generational segmentation, etc… which allow in-depth insight into the customer preferences.
Benefits of Market Segmentation:
- Improved Campaign Performance:
Market segmentation definitely improves the performance of your campaign through targeted marketing. A general audience campaign may reach more number of people but has very little conversion. It is a fruitless, but expensive affair.
Even with evergreen products, Web design and development companies create personalised marketing to different segments results in high conversions.
- Product development:
Market segmentation creates a better understanding of the different types of customers that engage with your business. It is important to have a product range that appeals to all classes of society to improve the volume of business.
A car manufacturer releases different classes of cars from luxury two-seaters to large but affordable station wagons to cater to mid-income families. Keeping the needs of the various customers builds a good reputation for your business and a healthy relationship with your customers.
- Opens new market areas:
Market segmentation helps in identifying new market locations to expand the business. The data from segmentation can reveal interesting aspects of your customers and cross overs between different segments that can be exploited to mutual advantage.
A Manufacturer of Indian spice powders may start with a localised business model. However, by analysing market segments, they can expand their business to cater to the Indian communities across the world. It opens the way for both physical and E-Commerce expansion.
- Identify your Niche:
Market segmentation identifies niche areas with customers having very specific needs. Instead of generic products and services, niche product businesses definitely have better appeal.
A handcrafted ethnic wear business with a narrow high-end customer base can equal the revenue of a business that sells generic clothing to a broad customer base.
- Healthy Competition:
Market segmentation creates healthy competition, especially in niche businesses. Through a competitive advantage, businesses can become the preferred brand of choice for customers and distributors.
Open Designs is a Web Development Company in Chennai that caters to high profile clients, to ease their Digital Marketing journey. We are the best SEO services company when it comes to creating custom content for the different customer groups from detailed Market segmentation.