Geographical Segmentation
Geographic targeting is the process of identifying clients within a particular geographical area. It might be as specific as a zip code, city, state, or country. The less well-defined geographic divide includes the kind of place, whether hot or cold, rural or urban. Geographical factors influence client requirements, interests, and preferences and may help businesses determine where and how to focus their marketing strategies.
Demographic Segmentation
Clients are identified by demographic targeting based on essential criteria such as age, gender, educational level, income level, family size, ethnicity, and employment. It is a common targeting approach since the types of things and services that customers often purchase are impacted by demographic traits.
Senior communities, for example, focus their marketing efforts on adults 65 and older and their adult children. Luxury automakers mainly target high-income clients, although they have extended their services to accommodate non-traditional categories such as younger buyers.
Behavioral Segmentation
Brands utilize behavioral targeting to contact customers based on their tastes and behavior. Investigate how a customer reacts to a brand, including their:
- Purchasing and spending habits
- Attitudes • Utilization of a product or service
- Behavior during the buying process.
- Online interactions with the brand’s website.
Frequent flyer programs, for example, are used by hospitality companies such as airlines to incentivize client purchases. In addition, evaluating online activities such as website click behavior assists firms in optimizing their site navigation to increase conversions.
Psychographic Segmentation
Psychographic segmentation is based on deeply established lifestyles, beliefs, points of view, interests, and personality traits. Members of specific occupations or stages of life, typically included in demographic segmentation, frequently share basic identification features. Military personnel and instructors, for example, are models of dedication and fidelity. Students and young adults are exceedingly gregarious and networked.
Comcast, for example, presented a risky offer that appealed to Generation Z: a significant discount on plans that included free access to Amazon Music and HBO. It worked because it was well-suited to Gen Z’s lifestyle and interests. “Our new closed student product has taken off,” said Cheri Davies, senior director of acquisition marketing. “A significant increase in the traffic to our website and a significant increase in conversions,” the company added.
How to Implement a Market Segmentation Strategy
You can develop your market segmentation plan after understanding market segments. It consists of the following five steps:
Define your target audience. To do this, ask questions such as:
- How does your brand fit into the current market?
- Can you identify a need for your product or service?
- What is the market’s size?
Your market should be divided into groups. Choose one of the four targeting types; of course, you may use more than one!
Psychographic segmentation is based on deeply established lifestyles, beliefs, points of view, interests, and personality traits. Members of specific occupations or stages of life, typically included in demographic segmentation, frequently share basic identification features. Military personnel and instructors, for example, are models of dedication and fidelity. Students and young adults are exceedingly gregarious and networked.
Data Collection Methods
Brands may gather data on their target groups using a variety of approaches, including demographic-driven mailing lists, digital analytics, and consumer surveys. Each strategy impacts data quality and engagement, and the techniques of data gathering outlined below range from minimal to high degrees of engagement.
Inflicted
Inferred data is passively acquired while users navigate a digital property such as a website or third-party media domain. The information is obtained without the consumer’s explicit consent. It is the most common method for gathering behavioral data.
Declared
Consumers offer stated data explicitly using a comment form or procedure. It might be a survey or questionnaire that the consumer fills out for a more personalized experience.
Verified
This service verifies that the individual possesses the quality or attribute. It is attribute data, such as military status; a third-party provider has validated that. The validated data is acquired using a predefined data-gathering mechanism.
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