Market Segmentation Strategy: What is it all about?
Conducting an in-depth review of your target market and the audience is the first step to successfully launch your products/services. A market segmentation strategy is what empowers businesses to divide the target market into subgroups. A market segmentation strategy helps you to align your business goals and customer base along a combination of demographic, geographic, psychographic, or behavioral lines. By doing so, organizations can build targeted marketing campaigns to drive customer loyalty.
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Types of Market Segmentation
Different types of market segmentation methods are used to segment the market into distinct groups. However, new segmentation methods are being used to generate better results by classifying the market into various groups. Here are a few techniques using which organizations can segment their markets to enhance their competitiveness and profitability:
- Distribution segmentation
- Geographic segmentation
- Media segmentation
- Price segmentation
- Demographic segmentation
- Lifestyle segmentation
Client’s Background:[spacer height=”10px”]
The client is a world-renown luxury cars dealer in India.
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Predicaments Faced:[spacer height=”10px”]
Owing to their inability to ramp up revenue as desired, the client was looking at devising an effective market segmentation strategy to target the end audience groups. Since most of their target groups included customers ranging from their early twenties to forties, the client was looking at segmenting the market based on age groups to discover the untapped potential of the Gen-x target groups. To do so, the luxury cars dealer approached Infiniti Research to leverage its years of expertise in market research.
The luxury cars dealer wanted to accomplish the following goals:
- Identify market segments with the greatest profit potential
- Identify market segments interested in value-added services
- Understand different customer personas
Our approach:[spacer height=”10px”]
The market segmentation experts at Infiniti Research conducted a detailed market survey to understand the underlying factors affecting the client’s market growth. This enabled them to develop a market segmentation strategy to capitalize on the new opportunities. The market segmentation strategy was devised using primary and secondary market data collected from various channels within the luxury cars market.
Business Impact:[spacer height=”10px”]
The devised market segmentation strategy enabled the client to make precise decisions that aligned with the company’s resources and business goals. As a result of our solutions and recommendations, the luxury cars dealer was able to develop marketing campaigns that resonated with the prospects of each market segment. Understanding customer behaviors with respect to their offerings provided an edge in developing personalized marketing initiatives for each target market. This also enabled them to gain comprehensive acumens into the different types of market segmentation methods. Additionally, a fundamental understanding of different customer personas enabled the client to:
- Reduce risks
- Increase revenue
- Improve marketing strategies
To know more about the importance of market segmentation in the luxury cars segment, request more info from our market experts.