One of the marketer’s primary goals should be to successfully carry a market segmentation for a brand and have its products and services serve consumers’ needs and wants. These products should benefit several segments for brands to be able to gain value in areas like raising against competitors and a rise in profit margin. There are many reasons why market segmentation is important and how it can be done successfully.
First, it helps determine different market opportunities for companies. With market segmentation, brands get to study different groups of consumers and different levels of satisfaction from offerings throughout their industry. If businesses do spot out an issue with dissatisfaction, then they use it as an opportunity to improve their services and products to enhance the satisfaction in that segment. They might even launch a new service or product to help with the improvement.
Second, businesses can tailor-make their marketing initiatives. It’s essential that brands know what mindset their consumers have, because it helps them make adjustments in different targeted audience inn their marketing initiative. This allows consumers to feel like the companies care about their emotions, through their needs and gain a sense of sensitivity towards the brand.
Third, market segmentation helps with product development and design for different products and services. Companies need to meet the expectations they have for the company. Businesses create designs that will catch their consumer’s attention and end up buying the product or service. They have to identify what is and not going to work in the case of product design, development, and different offerings for consumers. This works as a positive impact for companies as they can use these essential factors as additions to products/ services to make sure their target audience needs are being fulfilled.
Market segmentation can help brands determine their product pricing. It allows the brand to try different pricing within different markets. They need to identify the right prices to target potential consumers in different markets. They can also adjust the product/services pricing accordingly to what they believe is right. This brings a sense of reassurance with their price offerings, whether it’s underpricing or overpricing a product or service. Companies can also see the correct distribution outlets and channels for services and products that are being targeted to different consumer segments.
In my current job position as a manager of a local boutique fitness studio, I get to oversee many of the market segmentation, especially when it comes to different marketing tactics. Quarterly, we try to come up with varying factors of marketing that will bring in new clients. It has helped us determine the pricing and the product design/development within different target audiences. With college students, we provide them with a discount, and we have a different marketing strategy to attach them to our business. Market segmentation allows companies to be successful in their market share and outshine their competitors.