The Smart Entrepreneur’s Guide To Market Segmentation
What is at the heart of market segmentation? A population, by default, is composed of very different people with unique wants & needs. By grouping the market into digestible segments, companies are better able to know how to reach the folks who actually want their product/service.
Market Segments vs Personas
But even savvy entrepreneurs can have missteps in their segmentation work, due in part to the nuances between market segments and personas. Basically, personas are all about the things that drive individuals to operate in certain ways. A market segment deals more the specific details that help define a group.
Types of Segmentation
There’s no single form of segmentation. Do you want to focus on psychographic elements & consumer behavior? Does it make more sense to pay attention to demographics, a more basic but very approachable form of segmentation?
Understanding the Market
The only way to truly zero in on the right type of segmentation is to do market research. Find out if a population actually wants or needs your product/service. Seek their input, even if it’s constructive criticism.
The Importance of Testing Strategies
Using your research, the next step is putting together a marketing strategy & testing it out. This will give you a palpable way of knowing whether you got things right or not. A note about the testing phase: be ready AND accepting of results you didn’t expect or want.
Basic Strategy Tests
Are your segments any good? Can they give you concrete info on whether your product/service is selling? Are you meeting your audience where THEY’RE at as opposed to where you choose to go? If you’re not hitting a target like you thought you might, it’s not a problem with the population — it’s an issue with your segmentation.
Be honest — market segmentation seems a little overwhelming, right? Breaking down data, analyzing it, and then putting it all to work isn’t for the faint of heart. But if there’s one thing entrepreneurs can take away about the process, it’s that they need to be flexible. Deciding you have all the answers & being hellbent on making your chosen strategy work no matter what will not benefit anyone.
Data analysis & strategy implementation is a science in & of itself. Like all good science, testing hypotheses is par for the course. So is getting results you didn’t expect. More importantly, every new test brings about new questions to answer. For market segmentation, you’re dealing with people & geographic locations. The only constant between these two is change. If you’re not able, or willing, to adapt to change, you’re going to be fighting a VERY uphill battle.
Market segmentation from the RIGHT Austin advertising agency can make all the difference in the world. Click here to connect with these experts today.