THOUGHTS

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

Dec 17, 2017

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 to leverage the benefits of 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.

benefits of market segmentation

Our market segmentation strategy can help you in optimizing your product launch and marketing strategies and reaching out to the right set of customers. Request a FREE proposal now!

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. Other major benefits of market segmentation are that it also simplifies things for the business by giving them clarity on different customer segments and understanding what they expect.

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.

Tailor-make marketing initiatives

With the help of market segmentation, companies can understand the varied mindsets of their customers. These benefits of market segmentation help businesses 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.

Request for more info to gain detailed insights on market segmentation and its benefits for your business.

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.

Determining product pricing

One major benefit of market segmentation is its ability to determine product pricing. It is essential for companies to adopt different product prices 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. The benefits of market segmentation help companies ensure that their offerings are neither overpriced or underpriced.

Assist in distribution strategies

One major benefit 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.

Improve your marketing effectiveness with the right market segmentation strategy. Request a FREE brochure to gain insights.

We help our clients make smarter decisions to achieve rapid business growth

Our strength lies in the unrivaled diversity of our international market research teams, innovative research methodologies, and unique viewpoints that merge seamlessly to offer customized solutions for your every business requirement.

Recent Thoughts

Global Forces Impacting Biofuels

Global Forces Impacting Biofuels

The business world has been in a pandemic mode for more than a year. While no one could have forecast how the year 2020 would play out, it's evident that few market trends continue to drive fundamental shifts in the renewable energy market. Though the energy...

read more

Insights

Our knowledge hub offers exclusive access to a collection of free resources and downloadable articles that provide insights into market developments and details on how our services can benefit your business.