Effective Market Segmentation Analysis Example

Marketing is a complex process, to say the least. It is not limited to advertising and promoting a product to businesses. In fact, marketing managers can spend years developing strategies for a project.

To begin developing a marketing strategy, a manager must start by understanding the market and the needs of the population. An individual would then come up with ways in which the products and tools will benefit the population. Marketing personnel also choose the right avenues to market the product, and they then generate leads and follow-up with them.

Once a marketing team identifies specific segments in the market that are worth targeting, they fine tune the marketing strategy to suit their target audience. Most experts agree that market segmentation can lead to significant improvement in revenues.

Market segmentation, however, goes beyond the marketing team. You should also consult your production and supply chain managers for ideal results. Your product should work for the specific audience at every level from manufacturing to technical support.

Market segmentation analysis is not as simple as it sounds. For example, if your product is a reputation insurance product, your first target would be to analyze the possible clients you would be interested in such a project. You would then follow this up with marketing surveys and questionnaires that help you identify the type of businesses who would be interested in such a service. Sampling the audience is also important, and when doing this make sure you have at least one representative of each type of business. Once you receive the feedback, analyze the information. Depending on your product, you may find certain small businesses who wish to guard themselves against online customer reviews.

Once you know your target audience, you can generate advertising and promotion strategies to best target those clients. You can also generate leads using email marketing, blogs and social networking as well. You may want to conduct special events for prospective clients, and create an opportunity to market to them directly.

Remember that market segmentation analysis is only the first step. It is only important for strategy development. You can use it to create an effective marketing strategy. You should focus your resources accordingly for the best results.