Identifying and understanding the business landscape is an essential part of any business and marketing plan. Not everyone is your potential buyer. Hence it is essential to have a clear understanding of your target market. Very rarely do we witness scenarios where two customers have identical needs. However, this is not the case, and businesses often need to identify profitable customer groups and then offer tailored services. This means businesses have to build a robust plan to identify and target customer groups willing to pay for their services. Hence, market segmentation and targeting turn out to be crucial across industries where businesses must target audiences based on their capabilities and strengths.
We can help you define your customer segments with the help of advanced target market segmentation solutions. Contact our market research experts to know more.
Business challenge
A leading global manufacturer of automotive detailing products, equipment, and car care accessories wanted to forecast the global market size for its products and build a robust market segmentation and targeting strategy.
By leveraging our market segmentation and targeting solutions, they also wanted to:
(1) Validate target markets in terms of profitability
(2) Identify new opportunity areas
(3) Analyze the competition
Our approach to market segmentation and targeting
To help the client, we adopted a holistic approach to market segmentation and targeting comprising the following phases. The phases outlined here provide an excellent overview of the concept. However, if you want to get into the details of creating a market segmentation and targeting strategy for your business, request a free proposal.
Phase 1: Defining the market
Global markets and the opportunities are vast. Hence, it is crucial to define every market segment by breaking it down into smaller segments and clearly defining the part you are going after. Typically, it involves identifying Total Available Market (TAM), Serviceable Available Market (SAM), and Serviceable Obtainable Market (SOM).
Phase 2: Creating audience segments
After defining the client’s target markets, our market segmentation and targeting experts segmented each market using geographical, demographic, behavioral, and psychographic variables. Each variable helped our client tap into different aspects of the audience. Leveraging them in unison helped create niche segments that impacted the overall marketing effort.
Phase 3: Building consumer segment profiles
Developing segment profiles helped the client gain detailed insights into the needs, demographics, brand preferences, and behavior of customers in each segment. Each profile offered a detailed overview of the customer landscape and helped understand how various external factors impact each segment.
This phase of segmentation also focused on understanding the current and potential value of the markets and detailed analysis to understand the characteristics of each segment. Therefore, it helped the client instantly grasp what that segment is about and encouraged the creation of segment profiles.
Phase 4: Evaluating the attractiveness of each segment
In this phase, our market experts focused on cross-referencing the research findings with market data and consumer insights to assess which segments can bring in the most significant return on investment. Factors like market size, growth rates, price sensitivity, and brand loyalty were leveraged to help the client evaluate the overall attractiveness of each segment in terms of dollar value.
Phase 5: Developing a market positioning strategy
The final phase of this market segmentation and targeting engagement revolved around developing a positioning strategy to help the client gain an edge and compete with a selected list of players. The focus was also on determining the best strategy to position their products, taking into account other competitors, their market footprint, and evolving market needs.
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Business outcome
The customized solutions accelerated the client’s market segmentation and targeting efforts by providing accurate insights into target market segments and customer needs. The benefits achieved include:
- Enhanced sales growth by helping the client design successful products and services
- Helped drive profits by tapping into the unmet needs of customers across segments
- Achieved their business growth objectives and enhanced market share
Market segmentation and targeting solutions offered by Infiniti Research help businesses identify and analyze the unique behavioral characteristics of customers that make up their market. It also enables businesses to group customers with similar attributes and target segments that drive the most value to the business. Using a holistic market segmentation and targeting approach, businesses can identify their most valuable customer segments and create products and marketing communications that align with the needs of their customers. When done systematically, market segmentation and targeting can help you create engaging, personalized, meaningful marketing campaigns that convert visitors to customers.
If you’re looking to leverage the benefits of market segmentation and targeting to achieve your business goals, request more information from our experts right away!
