Understand your target audience with segmentation
Make smarter business decisions with Market segmentation
Market segmentation is a powerful analysis that breaks down your market into segments and then concentrates your marketing efforts on one or a few key segments consisting of the customers whose needs and desires most closely match your product or service offerings. It can be the key to attracting new business, increasing sales, and making your business a success.
+ Understand how your brand is perceived in relation to your competition
+ Understand which brands that currently are the strongest
+ Understand what the drivers of brand relevance are in your market
+ Understand which opportunities there is for your brand to grow
+ Understand the actual size and value of your addressable market
+ Understand how you can group consumers big enough segments to be relevant for targeting
+ Understand the actual size and value of each market segment
+ Understand how your targeted segment is behaving in the category
+ Understand which channels of information/inspiration your segments prefer
What´s behind your consumer choices?
Consumer needs, wants, and desires are what truly define category demand. It is also what brands and products need to tap into, in order to stay relevant and be chosen. There are two sides to consumer choice; the emotional side and the functional side. A strong brand or product needs to be able to deliver on both.
Any given consumer has not just one, but a set of benefits that they look for. To understand category demand, we need to understand how the benefits intercorrelate with each other. To visualize this, we create a category universe – a map that take all the relationships between all the benefits into account. The closer that two benefits are to each other in the map, the more probable it is that they belong to the same set of benefits.
Find your target segments
When enough consumers express a similar category perception, a consumer segment is created. Each consumer segment has its own set of benefits that they look for in a brand or product, and can be profiled on size, value, category behavior, demographics, interests, communication channels etc.
Product positioning is the opportunity
Each product has its unique position in the category universe. A product’s position express the specific set of benefits that consumers perceive it to offer and/or deliver.
The better a product’s profile match the category perception of a segment – the easier (or less risky) it will be to target the segment.
When the segment – product fit is poor, targeting efforts will be risky and require the perception of the product to change.