Put in layman’s terms, marketing segmentation is the breakdown of a wide consumer base into smaller and more specific groups of individuals with the aim of targeting only the crowds most relevant to the business. If you want your brand to succeed, you should treat segmentation just as importantly as you treat sales or software development outsourcing it or doing it in house is your choice, of course.
Segmentation doesn’t necessarily mean the other, less viable, target audiences are overlooked or ignored. It’s just that the marketing strategy for them is a little different and nuanced, so that the company’s resources and time are spent wisely.
Below we’ll be taking a look at how the targeted marketing plan works when it comes to both the consumer and the business providing the service. We’ll then evaluate how it relates to your business prospects and fits in the larger picture of your marketing plan and strategy.
The benefits of employing such a strategy
Almost countless advantages and potential for a marketing segmentation strategy exist. From meeting the consumer demand sufficiently to maximising profit returns and opening new opportunities for the business, the targeted approach to promoting products is essential and lucrative in every sense.
Even when we set business apart from the consumer service and focus solely on meeting the requirements and needs of the customer, such a strategy won’t fail. For e.g. a certain video game sequel will be most noticeable and profitable among the fan base of that game series. It would be thus, of the utmost important to market the campaign such that you remain faithful and respectful of the views of the loyal community. It would also help to know your audience and therefore target a certain age group, say, only teenagers around 18 if you’re developing a game with mature themes. Of course, it wouldn’t stop you from bringing in new faces to the community by welcoming new changes that could ease new players into the series. This could be done by altering the cost of the game to a lower value for the majority to try.
If the above point has worried you about being detracted from the potential of the business, then you’re mistaken. The same strategy could be used to attract new consumers and thus market the product to broader groups. Taking the same example of video games, you can include models like additional exclusive content that would be directed towards players who are willing to spend more on this entertainment service. This could be anything from cosmetic items to premium equipment or even rewards that give a slight advantage to those who pay a higher price. Avoid valuing pay-to-win models over standard ones too much as these could result in all sorts of nasty results including the ongoing controversy about micro transactions. Just an example, but be mindful of keeping things balanced, even though you can focus on favouring the business side of things more.
Though our video game example fails us when discussing the next point, there are various other prospects to discuss that give an idea how segmented marketing can retain the audience even if significant changes occur in their lifestyles. These include traditional natural changes like growth, changing work or getting new jobs, or even moving to a different country. A product should be created keeping in mind the accessibility for all ages (the ease of use), the affordability for all households coming from different financial backgrounds (different pricing for different features and models), and keeping the service tailored for different countries (language accessibility). All of these factors contribute to maintaining the different target groups, all of which are relevant in their own capacities, to your business plan.
With such a unique differentiated marketing approach, no targeted group is ever overlooked, contrary to many misconceptions and criticisms. In fact, if the strategy is employed and executed correctly, your business is able to attract new consumers and retain the existing ones to maximise profits and returns.