The best way to market your business is to direct your marketing resources in the direction of the customers that will provide the best return on investment. That is why it is essential for any business to implement a marketing strategy that focuses on industry segmentation.
An interesting fact about industry segmentation is that companies are able to better customize their products and services for different customer niches. Let’s take a look at some of the strategies you can use within this type of marketing:
1) Personas- A personas approach makes it possible to have an intimate understanding of who your client base is by creating detailed profiles based on demographics, psychographics, and behavioral research. It also allows marketers to create content specifically targeted towards each personal persona.
2) Segmentation- This is a key component of marketing based on demographics. With segmentation, you can determine how your target market will respond to advertising, branding, and pricing. By determining which segments want what type of information or product or service you are able to narrow in on the needs of each consumer community within your business niche.
3) Know your customers’ needs- A useful tool for creating marketing strategies is to identify the customer’s “wants and needs” by conducting a SWOT analysis. Understanding what drives people to purchase from your business will give you the power of influence over their purchasing decisions. Once you can control the buying process, it becomes easier for you to leverage the focus of your marketing efforts on industries that will provide you with the highest ROI.
4) Customer Value Proposition- Your customers will always want to invest their money into products and services that have a higher perceived value than competitors. That is why it is important to know what factors make your business unique in terms of its “unique” differentiation. When you are able to understand why your business will be more valuable than the competition, it is easy to determine where and how much of your marketing budget should be allocated.
5) Demand curve- This is a tool that allows you to identify the price elasticity of various segments within your niche market. From this data, you will be able to determine the most effective way to capture your target audience based on an array of factors.
6) Market Mix- The market mix allows you to make decisions about pricing, product features and quality, distribution channels, and advertising that are custom-tailored for each industry segment. By creating individual marketing strategies for each niche it is possible to direct your business resources in the direction of increasing sales and revenue for your company.
7) Target market- By narrowing down your target market to a specific niche it will be easier to determine which assortment of product features and service qualities are necessary to make a sale. This process is important because it can help you create the most effective marketing messages that will resonate with your market segment. It will also allow you to hone in on how to best position your business so that it is differentiated from competitors who are targeting the same niche markets
When businesses understand the importance of industry segmentation, they can create more targeted marketing strategies and campaigns that focus their resources towards increasing consumer demand. When implemented correctly each of these strategies will provide your business with the opportunity to capture more leads and sales.