Market Segmentation Strategy: What Is It and Why Is It Important?

Market Segmentation Strategy: What Is It and Why Is It Important?

When you start developing a marketing strategy, the textbooks tell us that the buyer persona is one of the first things to define. However, with time, the concept of a target audience gets too broad and generic to achieve the most impressive results. This is where market segmentation comes in.

What is Market Segmentation?

The basic definition of market segmentation is when your target audience is divided into smaller categories that share similar characteristics

Putting Market Segmentation into Action: Effective Marketing That Works

The key point of market segmentation is to further use it to develop your targeting and positioning

Key Criteria

Geographic: country/city, urban/rural etc

Firmographics

Think of firmographics as demographics for B2C market segmentation

Geographic Segmentation

Divide your customers based on their geographic borders

How to Gather Intel for Market Segmentation

External: use Semrush’s Market Explorer tool

Demographic Segmentation

Target market segmentation based on demographics can be one of the most effective ways to target specific customers.

Psychographic Segmentation

This is all about the target audience’s minds

Source

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