The Importance Of Market Segmentation

As a marketer, you want to maximize your opportunities for a particular product. By segmenting the market for your product, you are allowing your product to be positioned in a meaningful way to targeted customers.

                  Why is this important? If you do not segment out your market, you end up allowing mass marketing (Links to an external site.) to take place. Every individual will receive the same marketing message, same list of features and be shown the same value of what a product can do for them. The downside? Not every person is alike. People use products in different ways, and you need to capitalize on the opportunity to build a marketing funnel and have audience segments for each stage.

                  For example, I work in the aerospace industry and for one light jet (Links to an external site.) product, there are various audience segmentations. First, you segment out the audience depending how far they are in the funnel. The top of the funnel is awareness, which means introducing new pilots to the light jet market. Next, you have consideration, where the audience might be actively searching for information on your product and is in conversations with your sales team on the light jet category. Then, you have conversion, which is when a person decides on a certain light jet product and purchases one. Retention is the last of the funnel stages, when you perform maintenance and service their products, keep them brand loyal.

                  You can tell how to speak to a person by segmenting them out into stages in the funnel. For aviation, you do not want to speak too technically to a new pilot in the awareness stage. However, you also do not want to speak too high level to someone who has been researching your product for years and wants specific questions answered. Understanding where your audience segments are at in the funnel will help you craft your message about the product. Remember, it will be much more meaningful to a person to connect with them based on their needs and understanding of your product. Segmentation is key.

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