Understanding Market Segmentation: Key Strategies for Targeting Customers (Full Transcript)

Speaker 1: Market Segmentation According to Sattel, market segmentation is the process of dividing an entire market up into different customer segments. Targeting, or target marketing, then entails deciding which potential customer segments the company will focus on. In order to reach the right customer or client, you need to segment your target market very specifically, so that the products and services you offer, and any form of marketing communication you create and share, are the right fit for each group of prospects. The key segmentations are geographic, demographic, behavioral, and psychographic. Let's have a closer look at market segmentation. Geographic segmentation, for example, could be to choose prospects in a specific region or place. For example, shoppers who visit major supermarkets in the United Kingdom or the US, for instance. Or you segment in terms of region, national, or international places. Demographic segmentation, for example, refers to the age, race, sex, economic status, level of education, income level, and employment. Behavioral segmentation refers to many aspects of your prospects, including locations people buy, the benefits they try to pursue, the usage rate, for example, heavy, medium, or light usage, the user status, for example, non-users, potential users, first-time users, regular users, or ex-users of a product or brand. Their loyalty status, for example, hardcore loyals always purchase the product or brand, softcore loyals who sometimes purchase another brand, or switchers who tend to buy the brand available to them at the time of need or that which is on sale. And the buyer readiness stage, for example, their awareness, knowledge, liking, preference, conviction, purchase of a product or service. Typhographic refers to the prospect social class, which can be grouped into and based on the occupation of the chief income earner. Their lifestyle, for example, values, beliefs, opinions, and interests, and personality characteristics. Marketers can or should at times segment their markets into even more specific audiences to reach customers more effectively. Business Software Inc. highlights, for example, segmentation of needs, for example, reduction of expenses, cash flow, service delivery, further need for education, social trends, and factors that segment prospects for businesses and individuals, for example, climate, language, ability to make quick purchase decisions, or physical size of the product, social status, or time-related factors. I hope you've enjoyed this short presentation, and if so, please like, share, and follow my blog and YouTube channel. I wish you all the best. Thank you for watching. My name is Naomi McLaughlin. Goodbye for today.