Importance of Market Segmentation

Importance of Market Segmentation

segmentation, strategy
Market segmentation is practised by most businesses in one form or another, as a way of streamlining their marketing strategy by dividing broad-based target markets into specific groups of consumers, and devising marketing methods that will appeal to each group. Some marketing practitioners also use behavioural segmentation to define their audience. Identifying viable segments Clearly defined market segmentation criteria not only ensure that customers are more likely to identify – and purchase – the product that is right for them; it also minimises wastage of resources, reducing the time spent marketing the wrong products to the wrong customers. It is important, however, to focus resources on market segments whose size, growth and profitability is good, both immediately and in the long run. The following 5 market segmentation criteria should be…
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Moneymaking Customer Segmentation Tips

Articles, segmentation, strategy
Moneymaking customer segmentation requires treating different segments differently. If different segments are treated the same, what is the point of having different segment Knowing why and how to treat each customer segment requires understanding of the potential in marketing data. The most precious data for marketers is hidden in their own databases. The dilemma is that marketers may not know how to look at their own data to release the potential that will help them communicate more effectively with their customers and prospects. Finding the right segmentation is half the challenge. The other half is knowing how to use them to improve profitability. Here are 11 of the most valuable tips to improve customer segmentation to increase profitability. All of them won't apply to any one company; but some of them…
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Marketing to women – Are you ready!!

Articles, marketing, segmentation, women
Marketing to women will deliver more profits to your bottom line than putting the same budget against an all-male target. Marketers must understand that women are elusive. Today’s woman is modern and confident, yet still holds onto some of the traditions of the past. So while they don’t want to be associated with the nuclear family of the ‘50s, they also don’t want marketers to assume they are so modern that they don’t value traditional family roles. Marketers must move away from the status quo and towards a fresh approach that mirrors the attitudes and thinking of the current female segment. While women continue to hold a stronger position in the corporate world and choose to be single, they still hold onto some of the traditional roles and responsibilities of…
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Beware of Invisible Competition

Articles, competition, marketing, segmentation, strategy
You might think it's pointless to identify future competitors when it's hard enough trying to forecast sales and uncover existing competitors' strategies. However, you need to take invisible competition into account when developing your firm's long-term strategies or plans, especially plans for global expansion. In fact, just thinking about new, future competition is worthwhile for the following reasons: It facilitates the long-term view. It forces you to look beyond the obvious and evaluate new international players; disparate companies joining in a potential alliance, joint venture, or merger. It helps you identify future business-building opportunities for your own company. This link between what people considered two very disparate companies spurred thinking about competition we cannot easily envision, or what is called "Invisible Competition” Competition isn't really invisible, of course. But we…
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Customer loyalty – managing, understanding and profitability

Articles, customer acquisitions, customer retention, loyalty, niche, segmentation
[caption id="attachment_39" align="alignright" width="300" caption="Know your customers"][/caption] It is of vital importance that organisations understand what drives both value and delight for their customers. Adopting a customer centric vision enables an organisation understand their customers, deliver customer delight and drive for loyalty. One fundamental issue we forget is that different customers have different requirements and will be delighted in different ways. Segmentation and data analysis are critical if an organisation is to generate loyalty from different customer segments. (more…)
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