Market Segmentation
- By Lisa Ellison
- •
- 06 Oct, 2020
- •
What is it and how can it add value to your business?
Market segmentation is something that's key to successful
marketing.
You'll often hear people say "imagine your target audience as one
person" but it's not always that simple. If you offer a range of products
or services that appeal to a range of people, there's no point in trying to
imagine one monstrous amalgamation of all of those needs and personality
traits.
Effective market segmentation is the process of splitting and grouping your
target market according to similar wants, needs, values and characteristics. In
doing this, you are creating more manageable and realistic sub-markets for you
to better target through refined means.
The benefits of segmenting your market include:
- Stronger marketing messages
- Advertising can be
more targeted
- Strengthened brand affinity
- More effective marketing tactics
- Better quality leads and as a result, higher conversion rate
- Clearer differentiation from competitors
- More focused marketing planning
As you can see, from a business perspective, segmenting your market will lead
to streamlined processes and as a result, less wasted spend and higher returns
on the money you do invest.
There are various types of segmentation:
- Demographic
- Geographic
- Behavioural
- Psychographic
Demographic market segmentation
considers characteristics such as age,
gender, race, income, location, finances, education and cultural background. By
considering and grouping according to these factors, you instantly have a group
of people who will have similar interests, life experiences, reading abilities
and disposable incomes. For example,
this means that you can target your higher-end leisure products by advertising in a glossy magazine,
reaching people with more disposable income and more free time on their hands (at a very obvious and basic level).
Geographic market segmentation
looks at not just country or postcode, it
has bigger implications. By considering the geographical location of your
market segments, you can establish groups of urban, suburban or rural
audiences, you can be aware of and appreciate cultural implications, weather
conditions and much more. There's no point in promoting flip flops to people at
the North Pole!
Behavioural market segmentation
enables you to predict your customers’ actions. There are a number
of elements to consider, such as:
- Purchasing habits: where, how often and through what means are they
buying?
- Spending habits: once a month, weekly, special occasions? Not just on your
brand but others.
- Brand interactions: how frequently and on what platforms are they interacting
with your brand? Just via promoted ads,
when you put yourself in front of them or are they seeking you out?
Psychographic
market segmentation
is very much more subjective and obtained from
in-depth qualitative research, as opposed to running data full of numbers and
figures. Establishing an understanding of personality traits will help lead
into a better read of your target markets' values, drivers, fears and really
shape an understanding of their personality.
Here are some things to consider:
- Lifestyle
- Values
- Interests
- Motivators
- Personality traits
- Attitudes
- Interests
- Drivers
- Beliefs
How do you approach your marketing? Do you go for a blanket approach and hope it hits the mark with enough people to make it worthwhile or are you really refining and targeting your products, prices, places and promotions?
Market segmentation is a big but hugely valuable investment of time. If you would like help with segmenting your market, get in touch.
#marketsegmentation #targetmarket #targetaudience #marketingconsultant
#freelancemarketer #demographics #psychographics
Jamie Laing - before you roll your eyes and scroll on, hear me out. (I know, the photo gave away my cliff hanger!) You may have been one of the 50,000+ people that saw my LinkedIn post last week, very much a throw away passing comment, essentially, to say I drove past Jamie Laing on my way home from the school run whilst he was on his fundraising mission for Children In Need.
I followed the story closely last week, quite hooked on his progress and whether or not he would make it. I'm not a celebrity-obsessed person and I rarely engage with anything celebrities do but last week was different and I'm sure I'm not the only one. I believe that many people didn't know he was even embarking on that challenge until last week - I didn't and I listen to Radio 1 daily! I also believe there's a lot of people that either don't know who Jamie Laing is or do know and don't particularly like him - we can't please everyone!
So, what was it about his fundraising effort that gripped the nation and led to him raising over £2m?! It's all about the story. And *this* is a great example of marketing done well - with an emphasis on storytelling and humanising your brand. His fundraising effort, backed by BBC Radio 1 coverage, provides a perfect case study on the power of storytelling in marketing. His journey emphasised his struggle, determination, vulnerability and honesty and that played a pivotal role in engaging the public emotionally and driving donations. If his personal narrative hadn’t been shared so openly, it’s unlikely that such a significant amount would have been raised.
This is something I've also experienced in fundraising efforts that I've been involved in and it makes all the difference but it takes strength to be vulnerable, and I'll always admire those who found the strength to tell their story (you know who you are 💛).
Here's what we can learn about the value of storytelling in marketing:
Emotional connection drives action : Jamie's story wasn't just about asking for donations; it was about sharing his personal experience and struggles throughout last week. People are more likely to connect with a cause when they can empathise with the storyteller. In marketing, emotional engagement creates a bond between the audience and the brand, making them more likely to engage.
Vulnerability builds trust : By being honest and vulnerable about his efforts and the challenges he faced, Jamie Laing built trust with the Radio 1 listeners. Vulnerability *humanises* a brand. In marketing, being transparent and acknowledging (and addressing!) flaws can enhance credibility and build a stronger, more authentic relationship with consumers.
Narrative creates value : Jamie Laing didn’t just promote an event, he shared a compelling and authentic story about his commitment. In marketing, your story can be the difference betwe en blending in and standing out. Crafting a narrative around your brand or product creates meaning, making it more likely to stick in the minds of consumers.
Great - now how can you implement this in your marketing?
If you have ever worked with me, you'll have heard me going on about the importance of authenticity. This applies to everything from branding to customer service. If a brand is transparent about its processes, challenges and goals, customers are more likely to engage and support it.
Emotion drives engagement - whether it’s a product, service or cause, storytelling can create an emotional connection that compels action.
Consistent storytelling over time, where customers can see growth and commitment, helps keep them invested.
So basically, Jamie Laing’s Children In Need campaign demonstrated that storytelling - driven by vulnerability, determination and honesty, was the key to the level of success in his fundraising last week.
For marketers, it highlights that connecting with people on an emotional level, telling authentic stories and leveraging the right platforms can make all the difference in achieving success.
It can feel difficult to build emotion into corporate marketing but there's ALWAYS room to be human.
Sometimes I'll get a message to my inbox referencing my marketing agency
👀 God no! I'm
not an agency! No
. Sorry, no.
I'm a 1.5-person band. (The other half is my husband who's a silent partner, providing the incredible design skills). I don't want to be thought of as a marketing agency. For me it has connotations of frustration, waiting, chasing, and to be fair, more often than not incredible results but still.
I'm a no-nonsense , to the point communicator .
I like to be efficient and get stuff done and that includes getting results for my clients . I like the fact I'm basically flying solo with this, it's easy. It's straightforward. It's DONE.
Let me give you context and insight...
I have experience with agencies from BOTH sides - I've been the client AND the service provider. Honestly, I had challenges with both. See if anything sounds familiar:
From a client perspective , my biggest frustrations were always...
- The huge bill. Sorry guys, I always found it eye watering even though I wasn't paying!
- Not being able to get hold of my point of contact and waiting whilst others frantically ran around trying to get answers for me.
- I felt bad for (and frustrated about) the person playing piggy in the middle. I couldn't speak to Studio to get answers or explanations about design issues/challenges/restrictions. Information was often lost in transit.
As the service provider , (for me) these were my biggest frustrations...
- There too many systems and processes that got in the way of me just getting on and providing the level of service I wanted to.
- Too many other cogs in the wheel slowing down the process.
- Too many hoops to jump through and restrictions.
