Types of Market Segmentation
Today, running a business is all about making informed business decisions and taking calculated steps to ensure the end-users stay loyal to your brand. To succeed in doing so one must be consistently informed about the changing figures of the market and feel the pulse of their customers. By far, segmentation is the best practice available to effectively reach customers and carry out marketing strategies in a systematic way.
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Market segmentation is a field of market research that helps organizations to divide their customers or cohorts into smaller sub-groups based on certain characteristics such as demographics, incomes, personality traits, and so on. With the right market segmentation process in place, organizations can optimize their marketing strategies to suit the needs of different focus groups. The market segmentation process starts with understanding the different ways by which you can segment a market. The following are the four primary types of market segmentation:
- Geographic segmentation
- Demographic Segmentation
- Firmographic Segmentation
- Psychographic Segmentation
- Behavioral Segmentation
Client’s Background
The client- one of the most sought-after sporting goods retailers headquartered in the US.
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The Challenge
Due to the increasing competition in the sporting goods market, the sporting goods store needed a strong, targeted marketing approach and a better segmentation strategy that helps address the needs of the global customer base. Also, the sporting goods retailer was looking at demonstrating a better understanding of the specific needs of their prospects by implementing the right market segmentation process. Infiniti Research was approached by the client to help them develop a robust strategy that suits their end business goals and objectives.
Our approach
Market segmentation is the first and the most crucial step in marketing and the key driver of business growth. Our experts adopted a holistic approach to assessing the different types of market segmentation strategies used by industry players. This led to the development of subsets of the market based on various factors such as – market needs, demographics, psychographics, and other behavioral criteria to better understand the target audience. The grouping together of similar customer groups further simplified the process of selecting target customers and setting marketing objectives for each group.
To aid the market segmentation process they also referred to industry-specific data collected from over 500 primary and secondary channels. The market segmentation process concluded with the development of a strategy to meet the client’s objectives using tactical weapons such as – product, pricing, promotion, and place. Request a free brochure to find out how our solutions can help you drive business success.
Business Impact
As a result of our customized solutions and recommendations, the sporting goods store succeeded in developing and executing a precise market segmentation strategy. The adopted strategy helped them focus on key customer segments to bolster growth and profitability. Also, by focusing their product development, resource allocation, and marketing efforts on high potential segments the sporting goods retailer was successful in multiplying their service and marketing efficiency, thereby, increasing the number of new customers.
Our solutions also helped the sporting goods store to:
- Identify underserved market segments
- Improve its core competencies
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