When creating a marketing plan, one of the methods to find buyers who are compatible with your company is "market segmentation." This article will explain the following:
Market segmentation concepts
Commonly used classifications
How to create a segmentation
By utilizing market segmentation, you greece telegram phone number list can focus your marketing efforts on buyers who are likely to purchase your products. This will help you increase the number of products and services sold and boost your sales. Please read on to the end.
What is Market Segmentation?
Market segmentation refers to market subdivision. Specifically, it refers to classifying customers by their attributes, hobbies, and preferences, and then narrowing down the market. ( Quoted from the Marketing Glossary ) It is used to clarify the target buyers when planning a marketing strategy .
The group of buyers classified by market segmentation is called a "segment." It is important for companies to consider which segment to focus their marketing on, taking into account the characteristics of their company and their products and services. Doing so will allow them to use their limited marketing budget and personnel more effectively.
There is also "customer segmentation," which classifies customers based on demographic aspects, etc. This is a different classification method from market segmentation, so do not confuse the two.
Background of the idea
The need for market segmentation is due to the diversification of buyers' needs. It is becoming more difficult to provide products and services that meet the needs of all buyers.
The opposite of market segmentation is " mass marketing ," a business marketing approach that attempts to advertise to the widest possible customer base . (Quoted from MasterClass )
The products and services sold by many B2B and SaaS companies are not suited to mass marketing. In most cases, they sell products that solve niche problems that cannot be solved by products and services for everyone.
Being in a niche field means you don't have to get caught up in competition with major companies. On the other hand, it's necessary to identify buyers who are a good fit for your company. It's important for B2B and SaaS companies to clearly define the buyers that their products and services are targeting and appeal to them in a pinpoint manner.
Commonly used classifications for market segmentation
Below are four classifications that are often used in B2B market segmentation. These classifications allow you to consider segments from various perspectives without omissions or overlaps, and are easy to use in marketing strategies.
Industry Segmentation
Sales size segmentation
Employee Segmentation
Job title segmentation
For more general classifications, including BtoC, please see our segmentation article.
Industry Segmentation
Industry segmentation is used to narrow down the industries in which your company is a good fit.
If there is an industry with many buyers of your products, you can expect there to be many potential customers there. By advertising in influential magazines within the industry and exhibiting at exhibitions in that industry, you can approach potential customers efficiently.
ANDPAD
(ANDPAD)
For example, if you are running "ANDPAD," a SaaS for the construction industry, your potential customers are clearly in the "construction industry." In this case, you can increase your sales by focusing your marketing efforts on the construction industry.
If you are a company in the construction industry looking for a SaaS platform, when you find out about ANDPAD, you will feel that it is a perfect fit for your company. If you were to vaguely state that it is a "platform that can be used in any industry," it would be difficult for any company to make an impression. By narrowing down the target audience, you can make an effective appeal.
