Today we will focus on identifying your company’s target audience and deciding which best fits your vision.
The variables of segmentation
- Geographically
The country, city or region that you want to sell gives an indication of the people you will meet there. The density of the respective area, e.g. B. whether it is urban, suburban, rural, etc. also reveals some additional information about the potential customers. In a rough estimate, you can even consider the climate zone. The climate zone tells you not only what habits these people have – like what kind of clothes they wear – but also what kind of people they are, i.e. whether they are open and communicative etc. - Demographic
This is one of the most important aspects. Knowing the customer’s age range and gender is half the way to understanding who they are. Age in particular provides information about the generation. For example, you can see if they are Millennials or Baby Boomers. But there are other details to consider. Nationality and race are important in identifying audiences. Especially in multicultural countries like the USA, where people from all over the world live together, demographic data is indispensable. Nationality can also mean different religions, beliefs and diets. In addition, you can think about what stage of life the customers are in – single or married etc. – and the size of their family. If they buy your product, will another family member buy it too? Finally their place in society. Income, education and occupation tell you what they are looking for and how much they are willing to spend. - psychographic
Social class, lifestyle and personality are the main pillars of psychographic analysis of segments in a market. Personality often relates to the person’s place of birth, but still relates to their individual habits. Lifestyle could be seen as the orientation of a person’s life. For example, leaders have different needs than followers or travelers. Social class determines not only the customer’s budget, but also the way they think they should act as a consuming person. - Behave
Now let’s focus on where the customers stand in relation to the category of products you’re trying to sell. Do they know the product you are selling and what is their exact readiness stage? How do you feel about it? Are you willing to buy it or at least try it? That is their attitude towards the product. Do those already using similar products seem loyal to the product in question? Are they interested in the brand they already use? Will they be curious about the new alternatives you will offer? People who already consume the goods you want to sell can also be divided into heavy, medium and light users. This practically tells us how much we expect from their purchases when they turn to our product. Apart from user rate, we have user status which tells us if they have tried a similar product, if they are still using it and if they stop using the particular product for some reason. The occasion is also a crucial parameter. When will people use our product? For example, it is much better to choose a segment where people use the product regularly than to focus on an industry where customers are only buying the product for a special occasion. The final criterion relates to the desired benefits. This part needs further consideration as consumers will focus on certain characteristics when purchasing a specific item. You may be looking for quality, service, luxury, convenience, reasonable prices and so on.
Where will you turn?
A rough assessment of the market gives you an indication of your decisions. In order to determine which group suits your company, you need to focus on a few aspects.
First, the segment must be accessible. Focus on that category of customers that you can easily access. The second part is that it must be large enough for you to perform many sails and eventually make a sizable profit. Keep your audience large yet manageable. Segments should also be distinguishable so that you can differentiate and operate them appropriately. Last but not least, remember that it must offer you the opportunity to serve them. In other words, they should be actionable so you can come up with a promising marketing strategy.
Did you read?
Interoperability: The key to achieving and staying at the forefront of your Rhett Power industry.
The Importance of the Digital Transformation Framework for Organizations by Vangelis Kotselas.
Can Error Manipulate Our Data-Driven World by Riccardo Pandini.
5 ways to deal with difficult people at work by Darren Fleming.
The impact of the Metaverse on the financial industry.
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