Market segmentation

Find in this article how to make a responsible market segmentation, using different variables and a simple step by step that you can apply in your campaigns and general strategy.

Segmenting the market

As the owner of your business, you must be fully aware of your customer’s profile. When I talk about profile I mean the common features that identify them so that you can do a responsible marketing and advertising job that will bring the expected return on investment.

Next we will see how to organize and perform a market segmentation to implement your digital media campaign.

Market segmentation is the method of choosing a significant population and dividing it into groups according to various common features to obtain smaller groups with similar interests, tastes, behaviors and other variables. In this way, you can find a group of people who have a much higher degree of susceptibility to purchase the products or services you offer.

Importance of market segmentation

Market segmentation is vital to establish the communication of your products and services in order to find the largest number of people likely to purchase them. With a proper market segmentation the work of implementing digital media campaigns will be much easier.

Types of market segmentation

When developing your market segmentation you should keep in mind some important concepts:

Geographic segmentation

Geographic or geolocation segmentation is related to the physical location of your potential customers: country, region, department, province, municipality, neighborhood, etc.

Demographic segmentation

Demographic segmentation gathers different features of your potential customers such as age, gender, education, marital status, economic level, etc.

Psychographic segmentation

Psychographic segmentation is the set of interests, emotions, tastes, attitudes and other features that build the personality. This type of segmentation is very important because you can tie in a more concise way, the products and services you offer with the motivations and tastes of your potential customers to make a perfect match that permeates communication and other important elements of your marketing mix.

Behavioral segmentation

The behavior of your potential customers plays an important role to consider, particularly now that we have digital advertising tools that help us identify some such as device usage, if they have played any video games, which pages or videos were recently visited or if they shopped online, for example. On the other hand there is what they report directly such as their relationships, visits to particular sites, etc.

How to perform customer segmentation

I am going to be a bit repetitive but it is very important to keep this in mind:

1. Geographic segmentation in digital media

The geolocation of your customers is one of the most important items. Thanks to the rise of digital media we are able to geolocate any place in the world with total specificity. Currently it is possible to locate countries, regions, cities and even through geographic coordinates and segment kilometers or miles around in media such as Facebook Ads and Google Ads.

2. Demographic segmentation in digital media

The access and data we provide to the media give them the possibility to know demographic features such as our gender, age, work sector, position, education and even our sentimental status. All this information is very valuable and allows us to reach the right people.

3. Psychographic segmentation in digital media

Your customers are people who have feelings, tastes, emotions and interests. When we talk about a psychographic profile we refer to that set of items that you can take advantage of to connect with your product. Each medium, according to its personality, has a particular way of offering us a way to segment:

Facebook Ads

Facebook has access to very relevant information, every time we like, stop on publications or follow a page, the platform classifies us in order to offer these categories to advertisers. As a result, the platform has a very good level of accuracy when implementing campaigns and generates good results at a low cost.

Google Ads

Google’s super power is words and its results page. Thanks to its algorithm and connection to our needs, Google allows us to segment through what users search for on the internet. With a list of user queries and platform tools, we can build a powerful campaign that brings visitors to our website who are looking for specific things. In addition to this, it also allows us to find users who have certain browsing profiles, who visit web pages, applications, forums, blogs, etc. on specific topics or even watch certain YouTube videos.

Psychographic variables in digital media are very important and you need to take them into account when building your advertising strategy or campaign.

Segmentation strategy

According to theory, there are 4 market segmentation strategies that have to do with the way you group your potential customers: mass marketing, differentiated marketing, personalized marketing and concentrated marketing. However, beyond identifying with one of these fancy terms, I invite you to create your own strategic segmentation based on your own knowledge of your customers and experience. Use the digital tools offered by platforms such as Facebook Business Manager or Google’s keyword planner and discover the motivations of your potential customers.

Estimated Cost: -1 USD

Supply:

• Your own customers

Tools:

• Spreadsheets
• Google Keyword Planner
• Facebook Business Manager advertising account

Market segmentation example

Let’s look at the example of a dental clinic that offers services for high net worth clients following the same steps as in the previous paragraph:

1. People living in Bogotá in Usaquén (upper-middle-sector locality in Bogotá, for those who do not know the city).
2. Women between 25 and 45 years old.
3. Commercial directors, vice presidents, presidents, marketing directors, HR directors.
4. Smile design in Bogota, Usaquen dental clinic, recognized dental clinic, recognized dentist in Bogota, dental clinic of “X famous person”, etc.
5. Health, dental health, vanity, face and face, wellness and beauty.

This way you can find a segment of potential customers in digital media more easily and implement your advertising campaign with greater agility and much better targeted.

This is one of the ways I do market segmentation that works and can be applied to digital media campaigns.