How Many Ways Can Market Segmentation Help?

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Uncovering Hidden Markets

Gaining Competitive Advantage

Psychographics

Branding

Targeting

Positioning

Niche Marketing

Creating New Markets

Developing Existing Markets

Profitability Analysis

Marketing Planning

Product Development

Organizational Development

Dynamic Segmentation

Revitalizing Marketing

Segmenting In A Time Of Crisis

Glossary Of Terms

Why Segment Your Market?

Companies work harder than ever nowadays to ensure that each marketing dollar spent has the greatest impact possible.

Increasing competition for markets make it increasingly hard to do mass marketing. Consumer diversity is increasing and firms are constantly differentiating their products relative to competitors.

But when the focus is on niche markets, the company's marketing can better match the needs of that group. Target marketing and market segmentation allows firms to focus their resources more effectively, and with a greater chance of success.

Market and brand managers are continuously being asked to increase their ROI. They're constantly searching for new information about their markets, and new ways to approach them.

This is where market segmentation comes in.

Divide And Conquer

Market segmentation focuses on that subset of prospects that have the greatest potential of becoming customers and generating revenue.

When segmentation is done right, you get the highest return for your marketing expenditures.

Market segmentation is a proven way of improving profitability.

By focusing on individualized sub-groups, you're better able to meet their needs and gain higher market share and profits.

Good market segment research explores a broad range of demographic and psychographic factors. The process involves separating a market into groups whose benefit requirements are similar.

The better you can group your customers into market segments the better your chances are of winning and keeping them.

Companies who segment their markets match their strengths and offerings to the groups of customers most likely to respond to them.

By selecting and focusing on the most responsive segments to the exclusion of others, marketing can be created to more effectively fit those. And to most generate the most profitable returns to the company that does it.

How Your Company Benefits

Finding, understanding and focusing on the needs of your best customers can make you a market leader.

The right kind of market segmentation research can help you understand your customers:

• Tailor your marketing mix to the customers most likely to want your products or services
• Identify behaviors and buying motives for your products.
• Identify your most and least profitable customers.
• Help you avoid unprofitable markets.
• Increase brand loyalty and decrease brand switching.

Market segmentation research can help you gain competitive advantage in your market:

• Differentiate your products and services to meet your customer needs and desires.
• Design or redesign new products and services to meet your market needs.
• Find hidden needs and make improvements to your existing products.

Market segmentation research can help you increase revenues and profits:

• Refine your pricing to maximize revenue.
• Find markets where you can increase your price.
• Reduce marketing costs.
• Optimize your marketing resources and get the most impact for your investment
• Focus and match your activities to things you can do effectively and profitably

Market segmentation research can help you grow your market share:

• Evaluate emerging and potential markets.
• Learn more about your competitors.
• Improve your competitive positioning to be more accurate and better differentiate you from the competition.
• Reduce competition by competing in a more narrowly defined market and establishing a niche.