{"id":66032,"date":"2020-10-09T10:30:14","date_gmt":"2020-10-09T05:00:14","guid":{"rendered":"https:\/\/www.opendesignsin.com\/blog\/?p=66032"},"modified":"2021-03-10T12:47:08","modified_gmt":"2021-03-10T07:17:08","slug":"market-segmentation-types-and-benefits","status":"publish","type":"post","link":"https:\/\/www.opendesignsin.com\/blog\/market-segmentation-types-and-benefits\/","title":{"rendered":"Market Segmentation &#8211; Types and Benefits"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_73 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-69e77ea3ed385\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #ed2327;color:#ed2327\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #ed2327;color:#ed2327\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-69e77ea3ed385\"  aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/www.opendesignsin.com\/blog\/market-segmentation-types-and-benefits\/#Demographic_Segment\" title=\"Demographic Segment:\">Demographic Segment:<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/www.opendesignsin.com\/blog\/market-segmentation-types-and-benefits\/#Psychographic_Segmentation\" title=\"Psychographic Segmentation:\">Psychographic Segmentation:<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/www.opendesignsin.com\/blog\/market-segmentation-types-and-benefits\/#Behavioural_Segmentation\" title=\"Behavioural Segmentation:\">Behavioural Segmentation:<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/www.opendesignsin.com\/blog\/market-segmentation-types-and-benefits\/#Benefits_of_Market_Segmentation\" title=\"Benefits of Market Segmentation:\">Benefits of Market Segmentation:<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/www.opendesignsin.com\/blog\/market-segmentation-types-and-benefits\/#Improved_Campaign_Performance\" title=\"Improved Campaign Performance:\">Improved Campaign Performance:<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/www.opendesignsin.com\/blog\/market-segmentation-types-and-benefits\/#Product_development\" title=\"Product development:\">Product development:<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/www.opendesignsin.com\/blog\/market-segmentation-types-and-benefits\/#Opens_new_market_areas\" title=\"Opens new market areas:\">Opens new market areas:<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/www.opendesignsin.com\/blog\/market-segmentation-types-and-benefits\/#Identify_your_Niche\" title=\"Identify your Niche:\">Identify your Niche:<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/www.opendesignsin.com\/blog\/market-segmentation-types-and-benefits\/#Healthy_Competition\" title=\"Healthy Competition:\">Healthy Competition:<\/a><\/li><\/ul><\/nav><\/div>\n<p><span style=\"font-weight: 400;\">Market Segmentation is the systematic, data-driven classification of potential customers into different segments having similar interests, wants, and needs. This classification allows <\/span><a href=\"https:\/\/www.opendesignsin.com\/\"><strong>Web Design and Development companies<\/strong><\/a><span style=\"font-weight: 400;\"> to create targeted content to attract the most viable customer pool. There are four major types of Market Segmentation, as follows,<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Demographic_Segment\"><\/span><b>Demographic Segment:<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">The target customers or audience is categorized by their age, gender, profession, annual income class, education, nationality, and ethnicity.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">\u00a0This 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 <\/span><span style=\"font-weight: 400;\">Firmographic segmentation. <\/span><span style=\"font-weight: 400;\">Data for demographic segmentation is easily gathered through basic data collection from marketing sites.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">A luxury couture brand like Prada targets high-income customers, from the creamy layer of industrialists and celebrities to sell their clothing line.<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Psychographic_Segmentation\"><\/span><b>Psychographic Segmentation:<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><b>T<\/b><span style=\"font-weight: 400;\">he customers are classified by their personal attributes like personality traits, value and belief systems, professional and personal attitudes, lifestyle, priorities, and motivations.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">These are purely subjective qualities, gleaned from extensive research on each individual. The Psychographic segmentation data is analysed from browsing and previous purchase history.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">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 <\/span><span style=\"font-weight: 400;\">Web Design and Development Company<\/span><span style=\"font-weight: 400;\"> they employ identifies customers who can afford their products, and have a penchant for preserving Indian heritage, through supporting artisans.\u00a0<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Behavioural_Segmentation\"><\/span><b>Behavioural Segmentation:<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">The customers are classified by their behavioural patterns like spending habits and interactions with brands.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Businesses take advantage of these habits to create targeted marketing for individual customers. The <\/span><span style=\"font-weight: 400;\">Web Design and Development Companies<\/span><span style=\"font-weight: 400;\"> create very specific Call to Actions for these customers that will have guaranteed conversions.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">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.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">There are several sub-classifications like Value Segmentation, Seasonal Segmentation, Lifestage Segmentation, Generational segmentation, etc\u2026 which allow in-depth insight into the customer preferences.\u00a0<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Benefits_of_Market_Segmentation\"><\/span><b>Benefits of Market Segmentation:<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<ul>\n<li>\n<h2><span class=\"ez-toc-section\" id=\"Improved_Campaign_Performance\"><\/span><strong> Improved Campaign Performance:<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">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.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Even with evergreen products, <\/span><span style=\"font-weight: 400;\">Web design and development companies<\/span><span style=\"font-weight: 400;\"> create personalised marketing to different segments results in high conversions.\u00a0<\/span><\/p>\n<ul>\n<li>\n<h2><span class=\"ez-toc-section\" id=\"Product_development\"><\/span><strong> Product development:<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">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.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">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.\u00a0<\/span><\/p>\n<ul>\n<li>\n<h2><span class=\"ez-toc-section\" id=\"Opens_new_market_areas\"><\/span><strong> Opens new market areas:<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">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.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">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.\u00a0<\/span><\/p>\n<ul>\n<li>\n<h2><span class=\"ez-toc-section\" id=\"Identify_your_Niche\"><\/span><strong> Identify your Niche:<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">Market segmentation identifies niche areas with customers having very specific needs. Instead of generic products and services, niche product businesses definitely have better appeal.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">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.\u00a0<\/span><\/p>\n<ul>\n<li>\n<h2><span class=\"ez-toc-section\" id=\"Healthy_Competition\"><\/span><strong> Healthy Competition:<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">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.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Open Designs is a <\/span><span style=\"font-weight: 400;\">Web Development Company in Chennai<\/span><span style=\"font-weight: 400;\"> that caters to high profile clients, to ease their Digital Marketing journey. We are the <\/span><span style=\"font-weight: 400;\">best SEO services company<\/span><span style=\"font-weight: 400;\"> when it comes to creating custom content for the different customer groups from detailed Market segmentation. <\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>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&#8230;<\/p>\n","protected":false},"author":2,"featured_media":66035,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[547,745],"tags":[683,638],"class_list":{"0":"post-66032","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-b2b-marketing","8":"category-b2c-marketing","9":"tag-web-design-and-development-companies","10":"tag-web-design-and-development-company"},"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v24.9 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Market Segmentation - Types and Benefits - Open Designs India<\/title>\n<meta name=\"description\" content=\"Market Segmentation is the identification of different potential customer groups that enable targeted marketing campaigns that result in high conversion rates.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.opendesignsin.com\/blog\/market-segmentation-types-and-benefits\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Market Segmentation - 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