Strategic market segmentation from "summary" of Marketing Strategy & Management by Diane M. Phillips
Strategic market segmentation is the process of dividing a larger market into smaller parts based on customer needs and preferences. It is a strategy that can be used to identify and target specific groups of customers, enabling businesses to create tailored messages that resonate with their intended audience.- Strategic market segmentation is a technique used by businesses to identify and better serve customers with specific characteristics.
- Marketers break down the consumer base in to distinct segments that share similar wants, needs, behaviors, or locations.
- Segmenting based on key demographics can lead to clearer insights into customer motivations, giving firms additional competitive advantages.
- This type of segmentation helps create tailored messages for each group while preserving resources across multiple markets.
- By studying customer behavior and preferences, marketers can focus marketing efforts on a limited set of target groups that are likely to respond to products or promotions.
- Ultimately, strategic market segmentation serves as a necessary tool for designing effective marketing strategies that maximize ROI.
- Companies also use demographic data to customize their brand message to each segment and ensure that it resonates with them.
- For example, businesses can more efficiently allocate promotional activities by targeting certain types of shoppers within a given area.
