Market Segmentation
Slice and dice customer data to discover high-value opportunities.
Customers are won, or lost, one action at a time
Companies must win and win often. And to do so successfully, marketers must not underestimate the importance of knowing your customers.
Mass marketing has proven to be ineffective in generating real impact. However, it is impractical and inefficient to satisfy each individual’s needs and wants.
The return on marketing investment demands efficiency – more customers at the lowest possible price.
Market segmentation allows you to move away from mass marketing and deliver a personalized customer experience by organizing your target audience into groups with similar characteristics. This allows you to better serve your customers’ needs and uncover profitable opportunities that would be overlooked otherwise.
At DirectiveGroup, we select the right segmentation approach for your business – from demographic and socioeconomic to interest and need-based segmentation – to identify your most profitable customers and to understand their unique requirements.
The aim of marketing is to know the customer so well the product or service fits them, and sells itself.
-Peter Drucker
Four Main Categories for Market Segmentation
Geographic segmentation is typically the easiest. It creates different target customer groups based on geographical boundaries. Because potential customers have needs, preferences, and interests that differ according to their geographies, understanding the climates and geographic regions of customer groups can help determine where to sell and advertise, as well as where to expand your business.
Demographic segmentation groups people by demographic elements such as age, education, income, family size, race, gender, occupation, nationality, and more. Demographic segmentation is one of the simplest and most commonly used forms of segmentation because the products and services we buy, how we use those products, and how much we are willing to spend on them is most often based on demographic factors.
Behavioral segmentation divides people by behaviors and decision-making patterns such as purchase, consumption, lifestyle, and usage. For instance, younger buyers may tend to purchase a body wash, while older consumer groups may lean towards soap bars.
Psychographic segmentation considers the psychological aspects of consumer behavior by dividing markets according to lifestyle, personality traits, values, opinions, and interests of consumers. Large markets like fitness use psychographic segmentation when they sort their customers into categories of people who care about healthy living and exercise.
How do I Find My Market Segmentation Sweet Spot?
Market segments are developed from research that seeks to understand people’s motivation and responses in a given situation, like purchasing your product or service.
You can group and prioritize people through statistical techniques that look for commonalities and differences for efficiency.
There are many different ways to conduct research, and you don’t have to limit yourself to just one method.
Four common types of market research techniques include:
- surveys,
- interviews,
- focus groups,
- and customer observation
Research can be 1st-party, done by you or on your behalf, or 3rd-party, leveraging others’ research.
WHY
DirectiveGroup
No gimmicks. No fluff.
No meaningless data.
Strategy-based approach
We start with the end in mind. We work with you to establish clear, measurable outcomes and determine the right mix of data, tech and creative to keep moving your business forward.
Experience integrating with internal teams
We’ll work collaboratively hand-in-hand with your internal team and be involved as much or as little as you like.
Transparency at every step
You’ll always know what the next steps are, what is being done and by whom. We keep you updated on the status of your campaigns and work with you to make strategic changes for better results.
Your success is our success
Our team carries the attitude and mindset of “think like an owner”. As such, we work relentlessly to help your growing company become an industry leader.
WHY
DIRECTIVEGROUP
No gimmicks. No fluff. No meaningless data.
Strategy-based approach
We start with the end in mind. We work with you to establish clear, measurable outcomes and determine the right mix of data, tech and creative to keep moving your business forward.
Experience integrating with internal teams
We’ll work collaboratively hand-in-hand with your internal team and be involved as much or as little as you like.
Transparency at every step
You’ll always know what the next steps are, what is being done and by whom. We keep you updated on the status of your campaigns and work with you to make strategic changes for better results.
Your success is our success
Our team carries the attitude and mindset of “think like an owner”. As such, we work relentlessly to help your growing company become an industry leader.
Discover High-Value Opportunities and Multiply Profits with Products and Services That Sell Themselves
The amount of data, tactics, and approaches the marketers have to face daily increases the need for a strategic partner. We provide the surety of a big digital marketing agency but deliver results with the mastery, commitment, and passion of an in-house team.
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