Hello and welcome to the Digi-Connex blog. I am Ashton Deroy and today’s post will be an educational post on marketing and marketing segmentation. So anyone who has ever heard a marketer talk ignorantly about consumer markets may wonder, why do we segment markets? Well to prepare a product or service offering we want to prepare an offering and in order to do that we may need to know roughly who to prepare the offering for. For example:
That ad would appeal to a same sex couple looking to get away on a family vacation. However I doubt this ad would appeal to baptist conservatives looking to vacation on what ever scary vacations they take. You also want to consider mediums, to target same sex couples you can probably run an ad at Pride events, Social media boosting and website ads. However again to target their opposite market you probably have to go for ads in conservative print media, radio ads on Christian stations and etc.
The sum of this is, in market you can not write a message to appeal to everyone! That is called mass marketing and in a lot of cases it is incredibly ineffective.
How do we segment target markets? You want to segment target markets based on these key areas, Geographic so where they live, Demographic so age, sex, Behaviour which includes what mediums they use, how they live weather they use their laptop or cellphone more and Culture which could relate to what they can and can’t do if they are religious or non-religious.
What are 5 steps in segmenting target markets?
- Group potential buyers based on similar needs for example for Digi-Connex our buyers are usually people who own businesses and need marketing and sales help. To get in to further generalising are buyers are usually male, over 30, male or female and they live in Toronto.
- Grouping products or services that can appeal to the selected market. The market I selected would likely enjoy some of the low cost web publishing solutions Digi-Connex has to offer but I doubt they would spring for a complete custom web solution.
- Developing a market product grid:
Step 4 you want to select a target market. The things you want to consider when choosing your target market are Market size, expected growth, competitive positioning, cost of reaching segment and of course can your resources allow you to reach the target consumer.
Step 5 Actions you take to reach a target market. For Digi-Connex this has included Facebook campaigns, we are launching an ad words campaign in January and we did posters around Quinte West.
What are two approaches to product positioning? You can either position head to head or differentiate. At Digi-Connex we like to differentiate from our competitors because we are a much more economic brand when it comes to digital marketing services.