What is Market Segmentation
It is the practice of dividing your target market into approachable groups. Market segmentation creates subsets of a market.
Market Segmentation and SEO Benefits
What is B2B and B2C segmentation
B2B -business-to-business marketing focuses on logical process-driven purchasing decisions, while B2C - business-to-consumer marketing focuses on emotion-driven purchasing decisions.
An example of B2B would be a SaaS Company that sells its products to other companies. Business-to-consumer (B2C) is the term used to describe a business relationship between one company and at least one individual consumer. An example of B2C would be a Amazon that sells products to individual consumers
B2B vs B2C
B2B and B2C marketing differ primarily in terms of their audiences and how they communicate to them
|Lower volume, higher price||Higher Volume, lower price|
|Education, efficiency||Entertainment, Conveniences|
|Interpersonal Relationships||Transactional Relationships|
|Logic and Features||Desires and Benefits|
|Long Term Goals||Short term goals|
|Log Sales Cycle||Short sales Cycles|
Types of Market Segmentation
Demographic segmentation refers to the splitting up audiences based on observable, people based differences. These qualities include things like age, sex, marital status, family size, occupation, education level, income, race, nationality and religion.
Behavioral segmentation refers to a process in marketing which divides customers into segments depending on their behavior patterns when interacting with a particular business or website. Types of Behaviors: 1. Online shopping habits. 2. Actions taken on a website. 3. Benefits sought. 4. Usage rate. 5. Loyalty.
Psychographic segmentation is the research methodology used for studying consumers and dividing them into groups using psychological characteristics including personality, lifestyle, social status, activities, interests, opinions, and attitudes.
Geographic segmentation involves segmenting your audience based on the region they live or work in. This can be done in any number of ways: grouping customers by the country they live in, or smaller geographical divisions, from region to city, and right down to postal code.
What is a KPI
Key Performance Indicator (KPI) is a measurable value that demonstrates how effectively a company is achieving key business objectives. Organizations use KPIs to evaluate their success at reaching targets.
Examples of KPIs
- Revenue growth.
- Revenue per client.
- Profit margin.
- Client retention rate.
- Customer satisfaction.
Market Segmentation Best Practices
Steps in Market Segmentation
- Identify the target market.
- Identify expectations of Target Audience.
- Create Subgroups.
- Review the needs of the target audience.
- Name your market Segment.
- Marketing Strategies.
- Review the behavior.
- Size of the Target Market.