Tag: market segmentation engagement

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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 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.


Are you looking for solutions to any of these challenges or want to know more about our market intelligence services?

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Brand Strategy and Market Segmentation Study for a Leading Utilities Industry Client

With the rise in technical awareness among the global population, companies in the utilities industry are poised to witness major challenges in effectively meeting consumers’ needs while managing revenue downturns.

Today, amidst myriad new opportunities and challenges facing the utilities market, companies are forced to adopt a more sustainable approach to cost management, brand strategy creation, and enhanced spend visibility. The global utilities market faces competitive pressure from several other players in the industry, making it necessary to leverage new technologies and develop a well-defined brand strategy to thrive.

As the utilities industry transforms itself digitally, companies operating in this sector are expected to face new challenges in the form of regulatory changes and shifting market conditions. Though technology acts a major facilitator for change in the utilities industry, new market opportunities accompanied by unforeseen risk factors will further complicate the entire process of digital transformation.

The Business Challenge

  • The client: A utilities industry client

A leading utilities industry client based out of the US approached Infiniti to gain an understanding of the market to determine new opportunities, risk factors, and growth drivers. Additionally, as the client was unable to devise an effective brand strategy, they were looking at creating a well-defined brand strategy to navigate the common roadblocks and improve the bottom line.

How Can Market Segmentation Help Companies?

Market segmentation helps organizations in devising appropriate promotional and marketing strategies to cater to the growing needs of individual market segments. To gain a competitive edge, companies need to understand the market and stay aware of the industry challenges and barriers to growth. Market segmentation also helps in building a strong brand strategy that articulates and communicates the core value of an organization.

Summary of our market segmentation engagement

Market Segmentation

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Client Journey

To help the client gauge several factors influencing their brand value and help them identify the emerging trends, the market segmentation experts at Infiniti followed a strategic research approach. The approach included primary and secondary research methodologies coupled with qualitative and quantitative data collection procedures. The market intelligence experts also reached out to various stakeholders in the utilities industry to understand the factors that are influencing market growth.

Solution Benefits and the Business Impact

Infiniti’s market segmentation engagement helped the utilities client in increasing their competitiveness and profitability. A detailed assessment of the utilities market also helped them to improve – brand strategy, brand equity, brand recall, customer retention, and marketing communications. The market segmentation assessment also enabled them to reach a wider audience and drive sales across different segments.

The Future

The implementation of smart grids and the realization of electric power systems will be major factors driving the growth of the global utilities market. Organizations will have to determine the future direction of their markets and understand the impact of technological advancements on market growth and business models. Regardless of the chosen business model, players in the utilities sector will have to adopt strategies to leverage their current business position and enhance their future competitive positioning.


A must-read case study for strategy specialists and decision makers looking to develop an understanding of the utilities industry.

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Get Smarter with Market Segmentation: Top 5 Benefits for Your Business

Many successful businesses continue to grow simply because they understand their markets and customers. One of the best techniques businesses can use to better target their customers is market segmentation. Simply put, market segmentation is an identification process that allows businesses to recognize the specific demands of particular customer demographics and use those insights to develop products and services that meet the target users’ demands.

WHAT IS MARKET SEGMENTATION?

Market segmentation is all about grouping your customers into different subsets based on their likes, dislikes, demands, and preferences. One of the main benefits of market segmentation for businesses is that it helps to gain a competitive advantage in the market by analyzing various customer groups and targeting specific products to meet their demands.  It also simplifies things for the business by giving them clarity on different customer segments and understanding what they expect. Want more reasons to believe that market segmentation is the “right tool” for your business?

BENEFITS OF MARKET SEGMENTATION:

  • Helps determine market opportunities

Companies can reap the benefits of market segmentation by studying the various groups of customers and their level of satisfaction from the existing offerings. Wherever gaps of dissatisfaction are observed, companies can use this as an opportunity to improve and launch products to meet the requirements of this segment.

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  • Tailor-make marketing initiatives

With the help of market segmentation, companies can understand the varied mindsets of their customers. This helps them to make the necessary adjustments in their marketing initiative targeted at different groups of customers. It further makes the customers feel that the brand is sensitive to their needs and ultimately gain a sense of belongingness with the brand.IR_Brochure

  • Product development and design

One of the key benefits of market segmentation is that it helps businesses to get into the minds of their customers and understand their real expectations from the brand. Companies can use market segmentation to identify what is working well for them and what is not in terms of their offerings to the customers. Brands can use this insight to make necessary alterations or additions to their products/services to ensure that customer needs are met efficiently.

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  • Determining product pricing

It is essential for companies to adopt different product pricings for different markets, considering the price sensitivity of the customers in each market. Businesses can use market segmentation to identify the right prices to target new customers in various markets and fix prices for their products/services accordingly. This helps them ensure that their offerings are neither overpriced or underpriced.IR_Brochure

  • Assist in distribution strategies

One of the major benefits of market segmentation for businesses is its ability to aid in the identification of optimum distribution strategies for new products/services. For example, it helps companies identify the right distribution channels and outlets for products that are targeted at various segments of customers.


To know more about the benefits of market segmentation for your business

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