Having a general target market is a good start, but if you want your marketing campaigns to be even more successful, you should consider segmenting. Market segmentation is beneficial because it enables you to create groups of customers defined by shared wants and needs.
By segmenting a general target market, you can create buyer-based marketing campaigns that will have a notable return on investment. Here’s what you need to know about target marketing segments and why they’re beneficial.
Benefits of Target Marketing Segments
Aside from better addressing the wants and needs of specific groups of consumers, there are many other benefits to target market segments. Companies that segment their consumers are at a much lower risk of marketing failure. Knowing your target audience enables businesses to make more informed, accurate marketing decisions.
Understanding the differences between the four main target marketing segments improves reach and engagement. Businesses can clearly define the messaging that most appeals to each group with segmented target markets.
In turn, brands can determine similar wants, needs, and values across segments. This paves the way for consistent branding and messaging throughout each campaign.
Types of Target Marketing Segments
To get the most out of segmenting your target markets, you’ll have to choose which type of segmentation to use. Four main segments can be used. Here’s what you need to know about each of them.
Demographic segmentation is the most common form of market segmentation. It involves splitting audiences based on age, sex, marital status, race, income, education level, occupation, religion, and nationality. Many of these factors link to wants and needs as well as purchasing power.
Though it seems basic, geographic segmentation is an advantageous way to split your target market. Grouping consumers based on their location enables you to send location-specific ads while better understanding a segment’s wants and needs. Geographic segmentation can include grouping consumers based on country or state and even their zip code.
Your target market can also be segmented based on consumer behaviors. For example, you may want to split your audience based on their online shopping habits or how they interact with your website. Consumers can also be segmented based on their loyalty, usage rate, or the types of benefits that they seek.
Psychographic segmentation deals with mental and emotional characteristics. While these attributes aren’t as easy to observe as physical demographics, they provide valuable insight. Understanding your audience’s needs, preferences, beliefs, lifestyle, and motives are all quite impactful.
Aside from the four main target marketing segments, businesses can use several other methods. These include:
- Generational segmentation
- Seasonal segmentation
- Value segmentation
- Life stage segmentation
No matter how you choose to segment your target audience, the benefits are endless. When used properly, target audience segments improve marketing campaign performance, business focus, and product/service development.
If you’re looking for help segmenting your audience, contact Fat Guy Media today!