Market segmentation: What it is & Types & Examples

Market segmentation: What it is & Types & Examples

Market segmentation: What it is & Types & Examples
Market segmentation: What it is & Types & Examples

Market segmentation is the key to any long-term marketing plan that works.

To maximize your marketing budget, you should determine why your customers buy from you by dividing your market into subgroups. Then, you’ll be better able to meet their unique needs.

Market segmentation techniques can help your business make more money because they can help you give customers more personalized experiences. Because of this, the best tools for personalization let you divide your audience into groups so you can:

  • More email and text message leads
  • Increase the number of sales on your website
  • Improve average order values
  • Increase the customer lifetime value

In this article, we will learn what market segmentation is and how it allows you to correctly direct your marketing efforts to the right audience to ensure the success of your business.

What Is Market Segmentation?

Examples of Market Segmentation

Market segmentation is evident in the products, marketing, and advertising that people use every day. Auto manufacturers thrive on their ability to identify market segments correctly and create products and advertising campaigns that appeal to those segments.

Cereal producers market actively to three or four market segments at a time, pushing traditional brands that appeal to older consumers and healthy brands to health-conscious consumers, while building brand loyalty among the youngest consumers by tying their products to, say, popular children’s movie themes.

A sports-shoe manufacturer might define several market segments that include elite athletes, frequent gym-goers, fashion-conscious women, and middle-aged men who want quality and comfort in their shoes. In all cases, the manufacturer’s marketing intelligence about each segment enables it to develop and advertise products with a high appeal more efficiently than trying to appeal to the broader masses.

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