Market Segmentation
Market segmentation is a surefire strategy to improve your business marketing. Therefore, it is important for you to identify the target market you want to achieve by creating consumer groups or also known as market segmentation.
However, determining good market segmentation requires several appropriate ways to match the applied business strategy. For example by understanding the terms of market segmentation, the basis of market segmentation, to the level of market segmentation.
In general, market segmentation is a strategy used by businesses to understand market structure. At this stage, you need to identify opportunities that arise in the market.
Therefore, market segmentation has an important role in managing a business, including:
- Allows businessmen/marketers to focus more on targets.
- Gain insight into the competition map and market side.
- As evaluation material to determine business strategy.
- Key factors in competing with competitors.
Then how to determine good market segmentation? Check out the following reviews!
1. Define Target Market
Determining the target market can be adjusted to your business needs. However, in determining it, there are three parts that must be considered, namely new customers, focused customers, and other customers.
After determining the target market section, then you enter the appropriate criteria, such as demographic, media, life style, social and economic status, time of day, and so on.
2. Understand Consumer Needs
After determining the target market, you must find out the needs of potential customers which are then adjusted to the product you are selling. To find out their needs, you can ask potential customers directly or by carrying out a series of product tests.
After identifying consumer needs, you can classify these needs according to the target market that you have previously grouped. This grouping is intended as a business strategy road map and also material for evaluating the products you sell.
3. Understand Consumer Behavior
After determining the target market and knowing consumer needs, you can then carry out an analysis of consumer behavior. For example observing how consumers use the product, their situation before and after using the product, and also planning trends related to the product they use.
After observing consumer behavior, you can then process and analyze the data you get.
4. Determine the Marketing Strategy
After carrying out all the steps above, then you can determine the right marketing strategy for your business. each segment that you create certainly has a different strategy.
Therefore, you can adjust the determination of the marketing strategy that you will use with the segmentation data that you have analyzed before.