Market segmentation helps to send the right marketing message efficiently. In order to understand the correct meaning of market division, we must differentiate between it and the terms study and analysis of the market
Market segmentation is a marketing tool aimed at dividing a target market into smaller subgroups characterized by common characteristics.
The importance of market segmentation lies in several points:
The market can be divided and segmented through several basic steps:
It is necessary to conduct a general and comprehensive study of the market to understand the factors influencing consumer behavior, whether cultural, economic, or other.
All data related to the market and customers must be carefully collected, analyzed and understood, to understand the needs and trends of the target audience.
After studying, deeply understanding and analyzing the data, we can determine the main variables, such as age, gender, interests, etc., on the basis of which the market will be evaluated.
Divide the market into small segments, and study and understand the characteristics of each segment.
After dividing the market into smaller categories, we must study and analyze each category separately to determine its needs, interests, and purchasing patterns.
Developing marketing strategies to suit the target groups through advertising messages through various marketing channels appropriate to them.
Finally, the selected strategies are implemented, their success is followed up, and their strengths and weaknesses are identified for development.
There are basic types of market segmentation:
That is, market segmentation according to customer demographics, based on age, gender, gender, education, income...
Example: Discovering that most users of new electronic game consoles are young males with reasonable income.
It is similar to demographic segmentation but is specific to companies and institutions, in terms of number of employees and customers, resources and revenues.
Example: dealing with multinational companies with a variety of more specialized products, while dealing with small companies with more simple products.
It depends on the behavioral and purchasing patterns of consumers, based on their previous purchasing and spending patterns.
Example: Consumers from younger generations tend to buy handmade or popular products, while older generations tend to buy national and well-known brands.
One of the most difficult types, but the most powerful, as it is based on the consumers’ personal lifestyles, interests, and opinions.
Example: Sportswear companies target customers based on their interest in practicing or watching a type of sport.
Market segmentation takes place through several stages:
Determine the objective of market segmentation and forecasts for different segments.
Determine competitor sectors, available information, required data, and determine target sectors for division.
Evaluate the potential risks of choosing a sector, the validity of the data, and the different sectors related to the target customers.
Testing different marketing strategies, measuring their success, strengths and weaknesses, and developing them.
To identify the obstacles facing the implementation of the strategy, how to overcome them, and how to announce them.
Examples of market segmentation appear clearly and daily in marketing and advertising used by customers such as:
It is to understand customer needs and build a successful marketing strategy and depends on three basic steps:
Segmenting the market into small groups of customers who are similar in their needs and desires.
Choosing a group or groups of target customers towards whom marketers want to direct their marketing efforts
Determine a distinctive position for the brand or product in the customer’s mind compared to the competition.
Identify the group most likely to win and achieve success, and who is best suited to a particular product or service. It aims to:
The process in which a brand or product is positioned in the customer's mind in comparison to the competition.
