4 Types Of Market Segmentation To Help You Make More Money
The 4 types of market segmentation that we’ll be looking at shortly can come in handy to help you direct your marketing efforts to the right target market and in general, help you make the most of your resources in order to make as much profit as possible.
The main reason why majority of businesses fail to celebrate their 3rd birthday leave alone their 5th is because the entrepreneurs behind them didn’t take certain factors into consideration when starting their businesses.
The good news however is that the 4 types of market segmentation we’ll be looking at can help you avoid getting into the pitfall that has engulfed many businesses and this is failure to split up the target market.
4 Types Of Market Segmentation #1: Geographic Market Segmentation
This involves splitting up your target market in respect to their location.
Every location has its own set of challenges hence the requirements for people living in one location may be different from those living in another location e.g. you can’t sell raincoats to people living in the Sahara desert and expect your business to thrive.
4 Types Of Market Segmentation #2: Demographic Market Segmentation
Demographic market segmentation is one of the most popular forms of market segmentation. It involves splitting up a market in respect to age, sex, education, income, religion, race etc.
Income segmentation for instance can help you know which segment of your target market is more profitable.
4 Types Of Market Segmentation #3: Psychographic Market Segmentation
This involves splitting up your target market in respect to the lifestyle of your audience e.g. low income, middle income and high income.
It can come in handy to know the purchase power that your target market has.
4 Types Of Market Segmentation #4: Behavioral Market Segmentation
This involves splitting up the customers in regard to their purchasing pattern, frequency or behavior e.g. those that frequently make a purchase and those that rarely make a purchase.
Sorting out your customers in this manner can help you come up with more effective marketing campaigns since you know who exactly it is you’re targeting e.g. you can come up with promotional campaigns to encourage your rare buyers to buy more from you more frequently.
My Take On The 4 Types Of Market Segmentation
I believe that if well executed, the above 4 types of market segmentation have the power to help your business run smoothly. This is by helping you tap into the right target market with the right products which in turn will help transform your business into a money making machine rather than a money sucking machine.
Although there are other methods of market segmentation, the above 4 types of market segmentation will give you a head start in the right direction.
If there’s one thing that you should take home from the above 4 types of market segmentation, it’s that it is easier and more profitable to deal with a more targeted segment of your market than a broader one.
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