Benefits Of Market Segmentation In Marketing [Some Cool Examples!]
The term “market segmentation” refers to the process by which a large market is broken down into more manageable subsets of consumers who share common wants and needs.
Think of it like sorting a bag of Skittles by color – you’re taking a big ol’ bag of candy and breaking it down into manageable chunks.
But why should we even bother with segmenting the market? Well, let me tell ya, there are a ton of benefits to this strategy.
Benefits Of Market Segmentation In Marketing
Tailoring Your Marketing Efforts
One of the biggest advantages of market segmentation is that it allows you to tailor your marketing efforts to specific groups of consumers. Instead of using a one-size-fits-all approach, you can create targeted campaigns that speak directly to the needs and wants of each segment.
For example, let’s say you’re selling a new type of workout equipment. By segmenting the market, you could target fitness enthusiasts with one campaign, while another campaign targets older adults looking for low-impact exercise options. This way, you’re not wasting resources trying to sell a weightlifting bench to someone who just wants to do yoga.
Increased Efficiency
Segmenting the market also increases the efficiency of your marketing efforts. By focusing on specific groups of consumers, you can more easily identify the most effective channels for reaching each segment.
This could mean using different social media platforms for different segments, or even using different messaging for different segments.
For example, if you find that a large segment of your target market is active on Instagram, you can focus your efforts on creating visually appealing content for that platform. So that you’re not spending resources on channels that aren’t as effective for reaching your target segments.
Increased ROI
All of this tailoring and focusing leads to an increased return on investment (ROI) for your marketing efforts. By targeting specific segments, you’re more likely to reach consumers who are actually interested in what you’re selling. This will actually lead to more conversions, and ultimately, more revenue.
For example, if you segmented the market and found that a large portion of your target market is made up of working professionals, you could create a campaign that emphasizes the convenience and time-saving aspects of your product.
By doing this you’re reaching the segment that is most likely to be interested in those features and see a greater ROI as a result.
Examples of Market Segmentation
Now that you know the benefits, let’s take a look at some examples of how companies have successfully segmented their markets.
Nike
Nike segments its market by sport, creating different lines of products for running, basketball, soccer, and more. This allows the company to tailor its marketing efforts to specific groups of consumers with different needs and interests.
Coca-Cola
Coca-Cola segments its market by age, creating different campaigns for different age groups. For example, the company’s “Share a Coke” campaign targeted young adults, while its “Coca-Cola Life” campaign targeted health-conscious consumers.
Lexus
Lexus segments its market by lifestyle, creating different campaigns for different lifestyles. For example, the company’s “Experience Amazing” campaign targets consumers who value luxury and exclusivity, while its “Lexus Enform” campaign targets tech-savvy consumers.
Final Thoughts!
Market segmentation is like a treasure trove of benefits for marketers. And it’s a lot more fun than just trying to appeal to everyone at once.
Market segmentation can be a bit time-consuming. But seriously, the payoff is well worth the effort. Moreover, with the help of modern technology, it’s easier than ever to segment your market and create targeted campaigns.
