WHAT IS MARKET SEGMENTATION?

The process of dividing a target market into smaller, more defined categories. It segments customers and audiences into groups that share similar characteristics.

Market segmentation creates a stronger marketing message

-Since you know who you are talking to you can avoid generic, vague language -You can use direct messaging that speaks to the needs, wants and unique characteristics of your target audience

Market segmentation helps identify the most effective marketing tactics

-Knowing who your market is guides you towards the best marketing strategy for your customer.

Market segmentation helps design hyper-targeted ads

-Digital ad services can target audiences by their age, location, purchasing habits, interests and more -The more you know about your market the more effective, targeted digital ad campaigns you can create.

Market segmentation helps attract and convert quality leads

-The more clear, direct and targeted your message is the more you attract the right people. -When you attract the right people, the more likely you are to convert a prospect to a potential customer to a customer.

Market segmentation helps differentiate your brands from competitors

-Being specific allows you to promote your USP (unique selling point). -You won’t blend in with other generic brands.

Market segmentation helps build deeper customer affinity

-Communicating offerings that uniquely serve and resonate with your customer creates a distinct value and leads to stronger bonds.

Market segmentation helps identify niche market opportunities

-Helps identify underserved niche markets that you can develop new products and services for.

Market segmentation keeps you focused

-Targeting in marketing keeps your message and objectives on track. -It helps you identify new opportunities and avoid distractions.

Market segmentation - travel motivation

-Knowing the reason people are traveling automatically segments them into broad groups. Examples: Business VFR Leisure Specialized/niche markets

Market segmentation - demographic

-Information is statistical and factual and easy to uncover Examples: Age Gender Income (disposable) Location Family Situation Annual Income Education Ethnicity

Market segmentation - psychographic

-More difficult to identify because they are subjective -Not data focused and require research to uncover and understand Examples: Personality traits Values Attitudes Interests Lifestyles Psychological influences Motivations Priorities

Market segmentation - geographic

-Can refer to a defined geographic boundary or type of area. Examples: Zip code City Country Radius around a certain location Climate Urban or rural