Targeting Customers through Market Segmentation

 

Market Segmentation pic
Market Segmentation
Image: smallbusiness.chron.com

A journalism and mass communications graduate from Kansas State University, Dawn Johnson of San Antonio has held several marketing and operations leadership roles at USAA. Following her passion for marketing, Dawn Johnson’s San Antonio firm DMJ Consulting now advises clients on efficient market segmentation.

Market segmentation refers to the clustering together of potential clients into groups or segments, based on similar characteristics. This is done to make marketing easier as specific campaigns will be tailor-made to target each segment.

Market segmentation is built on the premise that all buyers or business clients have different needs; hence, the best way to market to them is through targeting these specific needs. It is different from conventional mass marketing that just uses one marketing strategy to reach and convince all people.

To make segmentation practical, segments should be identifiable based on their attributes, accessible through communication channels, substantially large, unique, and durable to minimize the cost of making changes.

The markets can be segmented in terms of geographical location; through demographics such as age, income, religion, gender, and education; psychographics such as attitudes, opinions, and interests; and behaviors such as product usage, willingness to buy, and brand loyalty.

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