Segmented Marketing: What is it and how is it implemented?

Segmented marketing, also known as market segmentation, is a strategy that divides the market into smaller sectors that share common characteristics. This segmentation is carried out because it is easier to focus products and/or services according to the needs of each group or segment. The division is made based on segmentation criteria.

— Normally, three criteria are used to identify the different market segments:

— Distinction: which distinguishes each group, such as age or gender.

— Homogeneity: this focuses on preferences and needs that each group shares, according to personality, opinions, and interests.

Types of Market Segmentation

There are several types of market segments that can be created, but this time we will mention the 4 main ones considered when implementing the segmented marketing strategy:

1. Demographic Segmentation

In this segmentation, audiences are divided based on characteristics like age, gender, marital status, profession, education level, nationality, religion, and income level. Demographic segmentation is one of the most commonly used and basic types, as it can be combined with other segmentations to narrow down the group even further.

2. Behavioral Segmentation

This segmentation is based on how consumers behave. It is not necessary to choose a very broad group, and the information for selection can be easily gathered by analyzing certain behaviors:

• Online shopping habits.
• Actions performed on a website.
• Brand loyalty.
• Interactions with the brand.

Measuring these behaviors is very useful when analyzing how people interact with the products or services of the brand you are working with. If you have an online store or e-commerce, this type of segmentation can be very helpful.

3. Psychographic Segmentation

Here, it is important to focus on the personality and interests of users. While similar to demographic segmentation, the latter is more oriented to mental and emotional qualities. Psychographic segmentation allows you to differentiate people based on things like lifestyle, personality, beliefs, hobbies, and values.

Although understanding and knowing these characteristics of people is very useful, as it allows for the creation of highly attractive content, it is more difficult to acquire this information. It’s difficult to observe emotional or mental traits compared to more precise data like age and gender.

However, by conducting in-depth analysis, interviewing existing customers, analyzing data from the company’s website, using focus groups, and gathering information from market research companies, you can generate a highly effective message that people will connect with on a more personal level.

This analysis can help implement psychographic marketing strategies well, such as tapping into priorities, interests, and hobbies of prospects, using calls-to-action (CTAs), and engaging with them.

4. Geographic Segmentation

Compared to the previous types, geographic segmentation is one of the easiest to implement, while also being very useful. A customer’s or potential customer’s location can help you better understand their business needs and send specific messages regarding the geographical area. This can be defined in many ways, but the most common are country, city, postal code, and region.

It is also possible to identify users based on the population density of the region they live in, such as whether it is urban, suburban, or rural, and even the climate.

Benefits of Segmented Marketing

Segmented marketing offers many benefits for marketers and businesses, including:

• Improved business targeting: Market segmentation helps businesses focus their efforts. These efforts allow them to establish a brand identity and specialize in a specific type of service or product.
• Cost reduction: By identifying the main market segments to focus on, unprofitable ones are avoided, and marketing costs are significantly reduced.
• Improved marketing campaign performance: Targeted marketing improves the performance of each campaign. This is because it helps to target the right audience, with the right message, at the right time.

Step-by-Step Guide to Creating a Segmented Marketing Strategy

The steps to create a segmented marketing strategy are as follows:

1. Define your market: Start by defining your market and gathering information about your customer base through market research.
2. Analyze your existing customers: This will allow you to gather insights to identify the groups that are already buying your products and services and understand their needs.
3. Identify your buyer personas: Even if you have defined one or more buyer personas, it is important to verify and confirm that they are accurate.
4. Compare and identify gaps and opportunities: With the data gathered in the previous steps, you can identify market gaps. This helps define an audience that was previously underserved or even discover common audiences or behaviors you can target.
5. Define your market segments: Based on the usual characteristics of different groups, define your company’s market segments by setting data-driven criteria. This will allow you to assign prospects to the correct segments and track them appropriately.
6. Research each segment separately: Before taking any marketing action, such as creating funnels and campaigns, research each segment individually to create your new segment marketing strategy.
7. Test and optimize: Track the results of your new targeting strategy, try different approaches, and continue evaluating for further improvements.