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Meat Packaging Industry + Market Segmentation

The Journey Ahead for the Meat Packaging Industry

The meat packaging industry is crucial, convenient, and complex. It comprises of various sectors and sub-sectors, due to the multiple kinds of meat that are packaged and transported every day. Industry experts have forecasted steady growth for the meat packaging industry over the next five years. They have also highlighted the key market drivers and key challenges of the industry.

As developing countries grow, urbanization increases manifold, and this leads to an increase in demand. Consumers prefer hygienically procured and conveniently placed products. This allows for customers to save time and energy, even if it is at a higher cost. This is one of the crucial market drivers of growth in the meat packaging industry.

However, as demand for convenience increases, so does the demand for environmentally responsible and strictly regulated products. Consumers are more aware of the environmental impact of every industry and prefer sustainable packaging. They are also highly aware of the health effects of various products and are extremely particular about their consumption patterns. This is currently the most significant challenge faced by meat packaging industry players.

This challenge requires companies to implement strategic and tailored marketing approaches efficiently. Some of the top meat packaging industry players leverage target market segmentation solutions to develop a marketing approach that understands, and targets customers’ needs and preferences. This strategy allows for a higher return on investment and reduced losses on marketing. Additionally, brand identity is crucial to consumers today, and targeted marketing enables companies to control and improve their brand identity.

Infiniti’s experts have identified the key market drivers and key market challenges of the meat packaging industry in this article. Additionally, they have further explained the importance and benefits of target market segmentation analysis.

The meat packaging industry is forecasted to grow in the coming years. To identify and conquer every opportunity in this growing market, request a free proposal.

Market Drivers of the Meat Packaging Industry

Various factors influence the growth of an industry. The three factors listed below have been and continue to be key market drivers for the meat packaging industry. Infiniti’s experts have identified these factors as contributing to an increase in demand and improved operational efficiency.

Urbanization

As developing countries continue to proliferate, urbanization increases. This leads to a rise in demand, due to lack of access to fresh meat, and the need for convenience. Cities develop continually, and consumers focus on convenience and health. The meat packaging industry allows busy consumers to gain access to meat at a convenient time and location.

The Need for Packaging of Meat

Fresh meat must be stored and transported in controlled and regulated environments. Packaging of meat allows for creating a constant protective environment for the necessities. Fresh meat packaging helps by controlling the level of oxygen within the packaging, while also keeping the meat hygienic, protected, and conveniently available to all consumers.

Efficient Storing and Transportation

With innovation and development in technology, storage and transport have become easier and more readily available. The need for controlled environments has been met by improvements in cold storage and increasing shelf life. Additionally, there are various efficient and suitable transportation options for companies and consumers to rely on in the meat packaging industry.

To gain more in-depth insights into these key market drivers and their impact on the meat packaging industry, request more information.

Challenges of the Meat Packaging Market

The meat packaging industry has experienced growing demand and is forecasted to continue growing over the next five years. However, certain major challenges have surfaced in this industry and serve as barriers to growth. Infiniti’s experts have identified the following barriers, and have further discussed the most effective solution to recovering growth efficiently in the meat packaging industry:

Sustainability

The environmental crisis and negative impacts of plastic have changed the way consumers and companies interact with packaging. As sustainable options continue to develop through innovation with a crucial social cause. While sustainable packaging options are readily available, the scale of change required is challenging. Having to make equipment, operational, and personnel changes to adapt causes a variety of issues for meat packaging industry players. This continues to act as an obstacle to the growth of the meat packaging market.

Health and Hygiene Regulations 

As consumers become more aware and conscious about health, meat packaging market players face a changing market. Consumers are more particular about policies, licenses, health, and hygiene evaluations, as well as the quality of the product. Hygiene and health requirements have become more stringent recently, negatively impacting the meat packaging industry. However, consumers are a more challenging prospect as they are directly affected by quality, and they are well-informed. These changes in consumer behavior and regulations have led to an increased need for efficient and tailored marketing.

Logistics

With increased consumer awareness, changing health regulations, and the need for sustainable manufacturing make flawless execution difficult. While these changes are favorable for the industry and consumers from a long-term perspective, they pose various operational barriers for companies. Sustainability packaging requires deep-rooted and high investment change. Additionally, changing health and hygiene regulations require more stringency and efficiency within the companies. This increases the need for efficient operations, higher investment in training, and proficient machinery in the meat packaging industry.

Why Market Segmentation Matters

As customers become more aware and social causes influence buying behavior, the meat packaging industry must market their offerings efficiently. Social and health-related causes, and environmentalism, cause a series of challenges when it comes to marketing. However, target market segmentation enables companies to gain an understanding of consumers’ needs and preferences. This helps companies create tailored marketing approaches.

By segmenting customers according to various factors such as needs, preferences, value for the brand, companies can identify their most profitable segments. It also enables companies to tailor their marketing according to the preferences of each customer group and reduces costs substantially. Companies leverage market segmentation to efficiently strategize and implement tailored marketing, improve brand recognition, and boost customer loyalty. Additionally, other crucial market intelligence solutions can help companies overcome other challenges while identifying opportunities in a growing market.

To further understand what market segmentation analysis can achieve for meat packaging companies, speak to our industry experts.

telecom

Customer Segmentation Analysis Aligns a Telecom Company’s Growth Strategy with Customers’ Needs

The client, a global leader in the European telecom industry for more than a decade, wanted to segment its large enterprise customers and develop strategies to meet their changing digital communication-based needs. With Infiniti’s customer segmentation analysis, the company boosted enterprises sales by 20% and maintained its leadership in the fast-evolving telecom market.

Customer Segmentation Analysis for a Telecom Company

Business Challenges Faced:

As revenue continued declining in some of the core services, the client started losing ground to its competitors. To win back the market share, the client launched a new growth plan. However, the new growth strategy did not help the client in addressing the complex issues eroding the company’s growth. This was because the client lacked a unified view of its customers’ issues and products to keep pace with their growing digital communication needs. As such, they collaborated with Infiniti Research to leverage their expertise in offering customer segmentation analysis. By leveraging Infiniti’s customer segmentation solution, the client also wanted to:

  • Segment a large customer base into a more manageable group
  • Alter marketing focus and strategy to meet the needs of the different segments
  • Enhance distribution strategies
  • Create targeted strategies that capture customers’ attention

How can companies in the telecom industry prepare for the rebound and ensure business continuity? Our COVID-19 business continuity support solutions can help clients in the telecom market to understand the change in volumes and values post the COVID-19 crisis. Request a FREE proposal.

The Approach:

As a part of the customer segmentation analysis, the experts at Infiniti Research helped the client to segment its large customer base into different groups. This helped the client to design a tailored growth strategy for different groups. Infiniti’s customer segmentation analysis also involved developing a process for outsourcing the sales and delivery of new communication services. This further helped the client to deliver services on time and enhance the customer experience.

Infiniti’s customer segmentation analysis also involved working closely with the client to reverse declining revenues and enhance profitability. In addition to this, our experts recommended the client to launch specific networking services for its customers.

Business Outcome:

Infiniti’s customer segmentation analysis helped the client to achieve a revenue goal for its enterprise business. Also, based on the recommendation of the experts, the client established an account planning process to maximize sales opportunities. Besides, with market segmentation analysis, the client was able to align sales, delivery, products, and pricing to increase sales of services for each customer segment.

In the first year alone, the telecom company exceeded its growth target by 11% and grew its networked services business by 17%. In addition to this, with Infiniti’s customer segmentation analysis, the client improved account planning for its customers boosted company sales by an additional 30%.

Besides, by leveraging Infiniti’s customer segmentation analysis, the client was able to:

  • Acquire new customers and retain valuable ones with responsive and cost-effective call center support and different pricing strategies based on customer segments
  • Upgrade services to provide customers with superior service
  • Focus sales around targeted customers and align sales, delivery, service, and products around services growth

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market segmentation

A Consumer Electronics Company Personalized Marketing Advertisements for Different Target Audiences by Leveraging Market Segmentation Analysis

Market Segmentation Analysis

The global consumer electronics industry is undergoing a rapid phase of change as leading brands are increasingly focussing on developing personalized product and service offerings for their customers. Also, with the proliferating marketing platforms today, making marketing and promotion more organized and targeted is becoming pre-requisite for businesses. This is where the real power of leveraging market segmentation analysis comes into play. Market segmentation analysis helps businesses to enhance customer retention, establish brand identity, better customer relationship, and increase sales conversion.

Market segmentation analysis can help you to efficiently group customers with similar characteristics together and create better value for them. Request a FREE proposal today!

Business Challenge

The client is a consumer electronics company based out of North America.

The client, a consumer electronics company, was looking to devise a sound marketing strategy to market their new digital cameras. They wanted to efficiently utilize their marketing budget to focus the most lucrative customer segments. To do so, they wanted to understand their customers’ needs and demands and categorize customers with similar requirements together. By doing so, they wanted to personalize marketing advertisements for different target audiences. They approached the experts at Infiniti Research to leverage their expertise in offering market segmentation analysis.

Other key objectives that the client wanted to achieve by leveraging Infiniti’s market segmentation analysis were:

  • Focus the most profitable customer segments and enhance customer retention
  • Better reach out to the target audiences and enhance competitiveness
  • Devise personalized product/service offerings for their customers and better customer relationship
  • Identify the right marketing channels to reach out to the target customers’

Contact us to know how our solutions can help you build an ideal market segmentation strategy.

Our Approach

To help the client tackle the above-mentioned challenges, the experts at Infiniti Research conducted a four-phased approach that involved:

Customer needs assessment to analyze the evolving needs and demands of target customers

Customer satisfaction survey to understand the satisfaction level of customers regarding the client’s product and service offerings

Sales assessment to evaluate the market potential for the new product in the next five years

Customer segmentation analysis to group customers with similar characteristics and needs together

Results Obtained

By segmenting customers into different sub-categories, the client was able to gain detailed insights into their customer segments. This helped them to devise personalized offerings for them. By leveraging Infiniti’s market segmentation analysis, the client was also able to create targeted advertising and marketing campaigns for different subsets of customers.

In addition, with Infiniti’s market segmentation analysis, the client was able to:

  • Increase competitiveness
  • Enhance customer retention and reduce churn rate
  • Enhance sales and revenue
  • Efficiently utilize marketing budget

Our market segmentation analysis will help you assess changes in customer behavior and measure the effectiveness of a marketing campaign. Request for more info here!

Market segmentation

Streamlining Marketing Initiatives and Increasing Sales by 33% for a CPG Company | Market Segmentation Approach

Market Segmentation Analysis for a CPG Company

The consumer packaged goods (CPG) market landscape has changed dramatically over the past few years, and so have the expectations of customers. Today, modern customers value businesses that identify their individual needs and meet their expectations. As such, CPG companies will need to restructure their business models and adopt a more personalized strategy. This is where companies realize the real power of leveraging market segmentation analysis.

Our target market segmentation analysis can help you to introduce products that truly matches the demands of your target customers. Request a FREE proposal today!

Business Challenge

The client is a CPG company based out of the United States.

Our client, a retail firm, faced difficulties in differentiating its brand from its competitors. Also, the client’s inability to reach out to the right customers through targeted marketing initiatives resulted in huge losses for the company. As a result, the client had limitations with their budget for marketing and advertising. The client, therefore, realized the need to segment their target customers and personalize offerings for them. To do so, they approached the experts at Infiniti Research to leverage their expertise in offering market segmentation analysis.

With Infiniti’s market segmentation analysis, the client also wanted to:

CapturePersonalize product and service offerings – With Infiniti’s market segmentation analysis, the client wanted to categorize their customer segments into various groups based on their spending patterns, buying behavior, interests, and value for the brand. By doing so, the client wanted to make marketing, product development, and customer service more effective by devising personalized approaches for different groups.

Enhance marketing campaign – By leveraging Infiniti’s market segmentation analysis, the client wanted to analyze their customers’ needs and requirements to personalize marketing initiatives for them. Also, they wanted to determine ways to acquire new customers, build brand loyalty, and build awareness around specific products.

Increase customer engagement – By leveraging Infiniti’s market segmentation analysis solution, the client wanted to constantly track customers’ activities within various groups. By doing so, they wanted to restructure their business models to meet their customers’ rising needs.

Our market segmentation analysis can not only help you to increase your competitiveness but also allows you to accurately set product prices for your different customer segments.

Our Approach

The experts at Infiniti Research conducted a three-phased approach that involved:

A customer needs assessment to analyze the evolving needs and demands of customers. This phase of the market segmentation process also involved categorizing customers with similar needs and demands together.

A customer satisfaction analysis to identify how well the client’s products and services satisfied the changing needs and demands of customers. This phase of the market segmentation engagement also involved identifying reasons for customer churn.

A marketing strategy engagement to devise a solid marketing plan for product promotion.

Results Obtained

Infiniti’s market segmentation analysis helped the client to segment customers into various groups based on their spending patterns, buying behavior, interests, and value for the brand. This helped the client to make marketing, product development, and customer service more effective by personalizing initiatives for different groups. Also, customer segmentation analysis helped the client to constantly track customers’ activities within various groups and restructure their business strategies to meet their rising needs and demands.

Also, by conducting a customer satisfaction survey, they were able to identify dissatisfied customers and provide them with products or services they’re looking for. Market segmentation analysis also helped the client to identify the best prices to target new customers and set profitable prices for their products and services. The client was also able to streamline their marketing initiatives and achieve huge savings on their marketing budget. The CPG company increased sales by 33% within one year of leveraging our market segmentation analysis.Capture

Want to gain more insights into our market segmentation services portfolio and their benefits for your business? Request a FREE brochure here!

Market segmentation analysis

Infiniti’s Market Segmentation Analysis Helped a CPG Company Focus on Lucrative Customer Segments and Drive Profitability

Market Segmentation Analysis for a Consumer Packaged Goods Company

Due to growing ethnic diversity and broadening income disparity, consumers are becoming increasingly heterogeneous in their product preferences. This has severely impacted various market sectors, especially the consumer packaged goods (CPG) sector. With this, the need to identify subsets of a market based on demographics, needs, priorities, common interests, and other physiographic or behavioral criteria is becoming imperative for CPG companies to better communicate with their customer segments. To do so, companies are partnering with firms like Infiniti Research to leverage their expertise in offering market segmentation analysis solution. The insights obtained from Infiniti’s market segmentation analysis has helped various global giants identify the most lucrative customer segments and personalize business strategies for them to achieve maximum profits.

Are you facing difficulties in breaking down your market into targetable groups? Our market segmentation analysis solutions can help. Request a FREE proposal today!

Business Challenge

The client is a consumer packaged goods supplier based out of Germany. The client’s unstructured approach to marketing and promotional strategies resulted in huge customer churn. Also, as the client’s key competitors had already adopted a more focused approach by understanding the needs of their target customers, the client was losing ground to their competitors. Also, the client was not able to meet their customers’ needs and demands. This subsequently increased the customer churn rate by 13%. The client, therefore, realized the need to create small segments comprising of like-minded individuals and devise personalized business strategies to meet their needs. To do so, they approached Infiniti Research to leverage their expertise in offering market segmentation analysis solution.

With Infiniti’s market segmentation analysis solution, they also wanted to:

Better serve customers’ needs and wants – By leveraging Infiniti’s market segmentation analysis, the client wanted to categorize their customers into various segments based on their needs and requirements. By doing so, the client wanted to personalize their marketing and promotional strategies to efficiently serve their customer base.

Increase chances for up-selling and cross-selling – By understanding their customers’ purchasing patterns, the client wanted to recommend other relevant products matching their requirements and increase the chances of up-selling and cross-selling.

Differentiate product prices by segment – As managing customers’ price perception has become important for businesses, the CPG company wanted to differentiate their product’s prices by segments to sustain higher margins.

Attract additional customer groups – By employing a target market segmentation analysis approach, the client wanted to devise targeted marketing plans for different customer segments and differentiate their products according to their customers’ demands.

Focus only on target audiences – The client noted that promoting their products across wide customer segments resulted in huge loses for the company. This even increased the churn rate. The client, therefore, wanted to leverage Infiniti’s market segmentation analysis to identify their lucrative customer segments and focus on personalizing their business strategies for profitable customer segments to achieve maximum profits.

CONTACT US to know how our market segmentation analysis can help you efficiently categorize your customer segments and create compelling marketing and promotional strategies for them.

Solutions Offered and Value Delivered

To help the client segment their customers into various groups, the experts at Infiniti Research followed a four-phased approach to customer segmentation.

  • The initial step of market segmentation analysis involved conducting preliminary research. As a part of preliminary research, the experts conducted customer surveys. The factors such as highest purchased consumer packaged goods, customers’ shopping patterns, and their preferred channels of purchases were analyzed.
  • In the second phase of market segmentation analysis engagement, the experts segmented customers into various categories considering factors such as their age, geography, income, lifestyle, and behavior.
  • The next phase of the market segmentation analysis involved filtering lucrative customer segments from the target market. For this, the experts conducted manual and statistical analysis.
  • The final phase of the market segmentation analysis involved conducting demo marketing and promotional campaigns for the categorized customer segments to gauge the effectiveness of different segments.

The insights obtained from Infiniti’s market segmentation and customer analysis solution helped the client to understand their customers more efficiently and craft compelling marketing and promotional strategies for them. This helped the client to influence their customers’ buying decision. This targeted marketing approach even helped the client to better match their lucrative customers’ needs and attract new customers. Also, the market segmentation analysis engagement helped the client to recommend products to their customers according to their needs and demands. This increased up-selling and cross-selling and further resulted in an increase in the company’s sales rate.

By understanding the needs and demands of specific customer segments, the client was also able to create their own niche products to attract wider customer segments. This further helped the company to utilize their marketing budget on their lucrative customer segments. Also, with Infiniti’s market segmentation analysis solution, the CPG company was able to reduce customer churn and attract new customers.

By leveraging Infiniti’s market segmentation strategies, the client was able to achieve sales growth by 19%.

19% Increase in Sales Rate

Want to gain more insights into the benefits of leveraging our market segmentation analysis solution? Request for more info!

What is market segmentation analysis?

Market segmentation analysis is the process of segmenting customers into smaller groups based on their unique characteristics including age, income, requirements, behavior, and purchasing patterns. Market segmentation helps marketing professionals to personalize marketing and promotional activities for each segment to gain maximum traction. This also enhances customers response rate for products and services.

How to do market segmentation analysis

How to do market segmentation analysis

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Here are some other examples of market segmentation analysis. Read the below articles to know how Infiniti’s market segmentation analysis solution has helped companies across other industries.

https://www.infinitiresearch.com/white-papers/target-market-segmentation-infiniti-research-success-story

https://www.infinitiresearch.com/casestudy/market-segmentation-strategies

https://www.infinitiresearch.com/casestudy/market-segmentation-sporting-goods

Maximizing ROI with an Ideal Target Market Segmentation Strategy

What is target market segmentation?

Target market segmentation involves determining how organizations can divide their customers into smaller groups based on characteristics including age, behavior, income, and personality traits. Product launch and marketing campaigns can be optimized by using target market segmentation strategy to reach out to the right set of customers/audience. Moreover, it also provides better response rates. An effective target market segmentation begins with a target market analysis which will correctly pinpoint the exact group of customers to choose. They help marketers define and understand specific buyer populations and leverage insights to deliver more relevant offers to customers.

Why do you need target market analysis?

Marketing or offering products/services to anyone and everyone will result in reaching out to customers who aren’t interested in your offerings. Thereby, the company would end up wasting its time and resources. Using target market analysis companies can easily determine how much the customers are willing to spend, how often they would purchase, and the strategies to adopt in order to keep up with the changing trends. A good target market segmentation strategy helps companies to maximize ROI and growth of the company. Most target market segmentation efforts are known to fail because inexperienced marketers attempt to segment a mass market based on one or two demographic characteristics. Generally, customer needs and behaviors don’t fit perfectly into one or two demographic characteristics. They depend on a variety of factors that can only be uncovered through a flawless target market segmentation process.

Steps involved in target market segmentation

Undertaking target market segmentation involves a set of steps, which include:

Identify target consumer market

The first step in target market segmentation is to clearly define the market. This means finding answers to key questions related to the customers in the target market. In-depth audience profiling will provide a comprehensive overview of the needs and expectations of the target customers in a particular market.

Divide the market

People attracted to the company’s products or services are likely to share certain characteristics. Identifying and defining these characteristics create market segments for target market segmentation. This step in target market segmentation process will help companies to refine their messaging and communication to specific customers. Developing customer personas and profile will help gather shared traits and consequently hone in on identifying patterns, gain insights into the trends, and bring in high-value customers.

Gather up-to-date and reliable data

Gathering information from third-party sources is one of the easiest ways to collect data for target market segmentation. It helps build a real-life picture of the industry that you operate in, the competition involved, and identify the potential customer base. However, knowing exactly what customers’ need often proves to be a challenging task. Companies must always keep tabs on how reliable their data is with respect to the changing customer needs and evolving market trends.

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With a reliable market intelligence partner like Infiniti research, you can always be assured to stay updated with the changing market trends. Request a free brochure to know more about our market intelligence services.

Leverage existing resources

Data can also be gathered from existing resources rather than completely relying on information collected from third-parties. Deep-diving into available information will provide insights into the company’s history or the industry, potential customers, and even the market competition. Primary research via directly interviewing customers is also a great source to collect data. Although a little more expensive compared to other methods, primary research gives companies data regarding what the customers really want. They can also provide answers to specific questions related to the business.

Track market competition

By keeping a close watch on the competitors in the market, companies can be well aware of what their products or services are up against and what tactics have to be adopted to compete effectively. Not only can businesses identify untapped customer groups, but also target them in marketing plans.

Marketers everywhere want to use data to implement more modern customer engagement strategies. But they often find themselves fighting obstacles standing in the way of success. Discover how our engagements can help your business.

 

Include analysis in the business plan

Once the target segments are identified using the target market segmentation process, the final step in target market segmentation is to incorporate these different segments into the business plan. This helps make projections regarding who will buy the product and in what quantities. It will also aid in evaluating the possible peaks and troughs in demand.

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Market segmentation

Market Segmentation: A Key to Success for Pharmaceutical Companies

The idea of dividing a market up into homogeneous segments and targeting each of them with a distinct product or message is now at the heart of marketing theory.

Rising costs and demands for affordable health care continue to challenge the traditional business assumptions and economics of the pharmaceutical industry. Also, this is raising internal development risks, costs, and time requirements for clinical trials. To add to the complexity, pharma markets have become fragmented as providers, patients, physicians, and payers look for focused solutions that have optimal safety and efficacy profits for a narrower population of patients. Additionally, the role of greater transparency, reference pricing, and changes in decision-making are essentially shifting decision-making authority away from individual physicians to healthcare administrators and payers. These dynamics result in the complexity of product decision-making and continue to challenge the effectiveness of traditional commercial models in the pharmaceutical industry. This is where the role of market segmentation comes into play. Market segmentation process enables pharmaceutical companies to move beyond product features and benefits or brand position to see specific needs through the eyes of specific market segments and this is an essential component of success for pharmaceutical companies.

Copy of Copy of banner IR (1)What is Market Segmentation?

Market segmentation is the process of segregating a market of potential customers into segments, or groups, based on various characteristics. The segments created consist of customers who will respond similarly to marketing strategies and who share traits such as similar needs, interests, or locations. The sole objective of the market segmentation process is to be able to design a marketing strategy, mix or program that matches, and is as impactful as possible, for each specific segment. It helps companies spend their marketing and advertising budgets much more wisely. Also, it enables companies to refine their product or service offerings for specific segments. Businesses are more likely to be able to meet the needs of a smaller, targeted segment, and therefore be much more successful.

What are the Different Types of Market Segmentation?

Demographic segmentation

Demographic segmentation is one of the widest and simplest types of market segmentation used. Most businesses use it to get the right set of people to use their products or services. Target market segmentation generally divides a population-based on variables. Demographic segmentation also has its own variables such as gender, age, income, family size, occupation, race, religion, and nationality. This type of market segmentation is most commonly used due to the fact that it has readily accessible information through existing customer relationships and can easily eliminate unnecessary data of the audience with just a few inclusions.

Behavioral segmentation

This is a type of target market segmentation that divides the population on the basis of their usage, behavior, and decision-making patterns. Behavioral segmentation divides your customers by their previous behavior in relation to your brand. It checks parameters including:

  • Previous purchases
  • Awareness of the business
  • Patterns of purchase
  • Usage level
  • Knowledge of the product
  • Rating of product or service

Psychographic segmentation

Psychographic segmentation is a type of market segmentation which uses activities of people, lifestyle, opinions, as well as interests to define a market segment. Psychographic segmentation is very similar to behavioral segmentation. But it also takes into account the psychological aspects of consumer buying behavior. These psychological aspects may be consumers social standing, his lifestyle as well as his activities, interests, and opinions.

Still, want to know more about market segmentation and how it can help companies build robust route-to-market strategies? We’d love to help! Contact us today.

Contact USWhat are the Benefits of Market Segmentation?

Benefit #1: Enhances the focus of the company

Target market segmentation is an effective method to enhance the focus of a firm on market segments. Better focus means better business. This helps in designing campaigns specifically for the target segments and aids in better returns and profitability.

Benefit #2: It boosts competitiveness

Naturally, if the focus increases, competitiveness in that market segment will also increase. This can also help in increasing market share and the chances of a new competitor entering might get low. Additionally, brand loyalty increases. Thus, market segmentation also boosts the competitiveness of a company from a holistic view.

Benefit #3: It helps in market expansion

Market segmentation can help in the immediate expansion of the market of any firm. If your market strategy is based on geography, then while catering to a particular territory, you can immediately expand to a nearby territory. Thus, the market share of business increases resulting in more revenue and profits.

Market Segmentation Strategies: Tick the Checklist

Measurable:

A good market segmentation strategy is one which is able to easily measure leads, sales figures, and engagement rates for any single market. If it’s not, then it probably overlaps too much with different segments and needs to be checked.

Clearly identifiable:

If any single segment overlaps too much with another, then probably it shouldn’t be a segment in its own right. A good market segmentation strategy requires every single segment to be substantially different and unique.

Accessible through promotional and communication channels:

If you are able to communicate with your target segments easily, then you can expect your market segmentation strategy to be effective. It does not matter whether this promotion or communication occurs via social media, advertising, telemarketing or e-marketing. As long as you can reach the consumers within it, you can expect to maximize your ROI.

Durable:

Market segmentation strategies can work effectively if market segments are not fluid but durable. How can you possibly expect to meet the demands, and communicate with, a segment that is consistently shifting and changing? It would be very difficult and would require infinite resources. Therefore, you need to ensure that your market segments are durable and stable in order to maximize your profits.

Responding differently:

For your target market segmentation process to yield maximum benefits you need to check if all of your market segments are responding in the same way to the marketing mix or differently. If the response is the same, then it is likely that they are actually not different segments.

For more information on our portfolio of market segmentation solutions, request for more information.Get More Info

How can Market Segmentation Help Pharmaceutical Companies?

In order to stay competitive in today’s transforming healthcare environment and engage better with physicians and patients, pharmaceutical companies need to shift from being product-focused to being customer-focused. They need to improve the effectiveness of communications and interactions with customers, including both physicians and patients, to meet objectives of marketing and help promote better health outcomes. Market segmentation can help them doing so in the following ways:

#1: Market segmentation in pharmaceutical marketing provides a better way to understand your target customers. This makes it easy for pharmaceutical companies to create marketing campaigns that really resonate with customers.

#2: Market segmentation provides detailed information on consumer personalities, emotions, values, interests, beliefs, and attitudes. This, in turn, can help pharmaceutical companies to identify their issues correctly and provide the required solutions.

#3: Market segmentation in pharmaceutical marketing is a very powerful tool as it looks more closely at the attitudes and motivations of consumers, providing pharmaceutical companies with important information on what customers want and why they want it.

#4: Psychographic type of market segmentation provides crucial information on the factors driving behavioral change among customers. Messaging based on customer attitudes and motivations are more likely to activate desired behaviors and strengthen the relationship between patient and brand.

#5: Target market segmentation helps pharmaceutical companies to analyze augmenting behavioral and demographic data with key insights on consumer personalities and motivations.

Market Segmentation Strategies: 3 Major Challenges B2B Enterprises Face and Ways to Tackle Them

For business-to-business (B2B) enterprises, market segmentation process can be a powerful tool for tactical and strategic applications under growing pressure to better target prospects and customers. Market segmentation strategies have enjoyed extensive acceptance in the consumer world for decades. However, B2B market segmentation process has weakened due to several factors like marginal technical expertise, limited availability of accurate data, poorly differentiated advertising, and  inability to develop high-quality leads. But with the rising income and middle-class population globally, business to business enterprises can no longer ignore the B2B market segmentation process. Buyers seeking customized products, customer support, and attention and are forming very specialized markets. This scenario was earlier seen in consumer markets only, but it has now developed into the B2B market as well. In fact, market segmentation strategies are something that enterprises in B2B can no longer ignore and expect to achieve positive results. However, there are some critical challenges B2B enterprises face with viable market segmentation process. Are these challenges different from the oneGet More Infos experienced in consumer market segmentation and If yes, then how? what are the possible solutions? In this article, we have tried to answer all such questions.

Challenges in B2B Market Segmentation Strategies 

Challenge #1: Dealing with highly complex B2B markets

Decision making in B2B markets is quite different from decision making in consumer markets. In the B2B market, buying decisions are normally complex with rules that are intertwined and made by different individuals with varying levels of authority while in consumer markets decisions are simply made by one individual or several individuals. Furthermore, potential buyers in B2B markets are oblique, multifaceted, complex and ephemeral. This creates the dilemma in formulating market strategies for B2B enterprises. In simple terms, it is difficult to identify who exactly is the target buyer and who we should segment in the B2B market segmentation process.

Challenge #2: Buyers in B2B market are more rational

Buyers in B2B markets are more rational and therefore, to devise market segmentation strategies here, one needs to pay attention to the need of the business rather than segmenting based on consumer segmentation audiences. This poses the challenge; it becomes important for enterprises to identify what drives customers’ needs and because businesses are not individuals, this is not too easy, yet it is theonly viable option.

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Challenge #3: Complexity of B2B products

In B2B markets, products are usually tailored and that is why making market segmentation strategies a success is very difficult in these markets. Additionally, each product bought by a business is rarely being used in isolation, in most cases, it is only a part of a larger system. This has made it mandatory to include experts in the market segmentation process of these markets which makes the whole process expensive. However, in B2B markets, there is a small section of customers who are important enough that they actually rise behind the setback of B2B market segmentation process. They need to be regarded as a unique segment with their own specific needs. Otherwise, they will walk away, and the firm will incur a huge loss.

Infiniti’s Solutions

With the years of expertise in market intelligence services, Infiniti research help businesses to measure the effectiveness of a marketing campaign, identify the most profitable market segments, analyze changes in market expectations, and also devise value maximization market segmentation strategies to enhance their shares. Also, through market segmentation solutions and need analysis, Infiniti helps businesses to gain actionable insights into expanding, diversifying, and tackling market competition.


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