Four Ways for Sales and Marketing Pros to Segment Their Target Market
Four Ways for Sales and Marketing Pros to Segment Their Target Market
1. Measurable
2. Substantial
3. Accessible
4. Differentiable
5. Actionable
Assuming your target markets meet those requirements, sales and marketing professionals can cultivate these segments to maximize their potential. There are four ways to segment any given market and the choices you make regarding how to segment will impact the quality of your efforts.
Demographics
The first way to segment a market is by demographics. This is the easiest, most measurable, and most widely used way to segmentation method. The market is divided into groups based on any number of factors including age, race, family size, sex, income level, net worth, social class, nationality, and more. Companies like InfoUSA have created massive databases that help businesses segment the market using these and other consumer attributes. These database companies offer free services that allow business owners to see how large segments are and make good decisions regarding how to best market to potential clients.
Geography
Segmenting a market geographically requires a company to focus solely on a specific neighborhood, city, state, region, or country. One of the best examples of a company who uses geography to segment markets is Pillsbury. Marketers at Pillsbury use software to analyze food preferences and buyer behavior right down to individual zip codes throughout the U.S.
Behavior
Some marketers choose to segment based on the predictable behavior of certain groups of people. This behavior can be triggered by major events like weddings, funerals, having children, or sending children to college. Another component of behavior deals with how certain consumers consistently seek out different benefits from similar products or services such as quickest service, lowest price, or best customer service.
Consumer Psychology
The final way to segment a market is by consumer psychology, which includes variables like lifestyle choices, personality qualities, and value systems. Different lifestyle choices that consumers make include marriage, parenting, healthy eating and exercise decisions, environmental conscientiousness, religious choice, and philanthropic activities.
Practical Application
No doubt, most companies will choose to segment by demographics. It requires less thought and is the easiest to analyze. However, some businesses have been able to serve more clients by broadening their segmentation efforts to include geographic, behavioral, and psychological components. It might make sense for your company to use a different segmentation strategy, too.
Four Ways for Sales and Marketing Pros to Segment Their Target Market - To learn more about this author, visit Bill Tamminga's Website.
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Philip Kotler reminds us that if markets are to be segmented and cultivated, they must meet certain requirements. Segments must be:
1. Measurable
2. Substantial
3. Accessible
4. Differentiable
5. Actionable
Assuming your target markets meet those requirements, sales and marketing professionals can cultivate these segments to maximize their potential. There are four ways to segment any given market and the choices you make regarding how to segment will impact the quality of your efforts.
Demographics
The first way to segment a market is by demographics. This is the easiest, most measurable, and most widely used way to segmentation method. The market is divided into groups based on any number of factors including age, race, family size, sex, income level, net worth, social class, nationality, and more. Companies like InfoUSA have created massive databases that help businesses segment the market using these and other consumer attributes. These database companies offer free services that allow business owners to see how large segments are and make good decisions regarding how to best market to potential clients.
Geography
Segmenting a market geographically requires a company to focus solely on a specific neighborhood, city, state, region, or country. One of the best examples of a company who uses geography to segment markets is Pillsbury. Marketers at Pillsbury use software to analyze food preferences and buyer behavior right down to individual zip codes throughout the U.S.
Behavior
Some marketers choose to segment based on the predictable behavior of certain groups of people. This behavior can be triggered by major events like weddings, funerals, having children, or sending children to college. Another component of behavior deals with how certain consumers consistently seek out different benefits from similar products or services such as quickest service, lowest price, or best customer service.
Consumer Psychology
The final way to segment a market is by consumer psychology, which includes variables like lifestyle choices, personality qualities, and value systems. Different lifestyle choices that consumers make include marriage, parenting, healthy eating and exercise decisions, environmental conscientiousness, religious choice, and philanthropic activities.
Practical Application
No doubt, most companies will choose to segment by demographics. It requires less thought and is the easiest to analyze. However, some businesses have been able to serve more clients by broadening their segmentation efforts to include geographic, behavioral, and psychological components. It might make sense for your company to use a different segmentation strategy, too.
Four Ways for Sales and Marketing Pros to Segment Their Target Market - To learn more about this author, visit Bill Tamminga's Website.
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Dave KurlanDave Kurlan is the founder and CEO of Objective Management Group, Inc., the industry leader in sales assessments and sales force evaluations, and the CEO of David Kurlan & Associates, Inc., a consulting firm specializing in sales force development. Dave has been a top rated speaker at Inc. Magazine's Conference on Growing the Company, the Sales & Marketing Management Conference and the Gazelles Sales & Marketing Summit. He has been featured on radio and TV, including World Business Review with General Norman Schwarzkopf, in Inc. Magazine, Selling Power Magazine, Sales & Marketing Management Magazine and Incentive Magazine. He is the author of Mindless Selling and Baseline Selling – How to Become a Sales Superstar by Using What You Already Know about the Game of Baseball. He created and wrote STAR, a proprietary recruiting process for hiring great salespeople, and he writes Understanding the Sales Force, a popular business Blog and is a contributing author to The Death of 20th Century Selling and 101 Great Ways to Improve Your Life, Volume 2. - Visit Dave Kurlan's Website |
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Leanne Hoagland-SmithAre your sales where you want them to be? Will you be one of the few who achieves sales or business success or one of the many who have failed to change? Are you tired of being told you are like everyone else? Then you may find my first book on sales of interest. Be the Red Jacket in the Sea of Gray Suits, The Keys to Unlocking Sales available at Amazon or at http://www.processspecialist.com/red-jacket.htm. This book is a reflection of my no-nonsense approach to improving sales to overall business results. If you are truly committed to making sustainable changes, then I can help you secure a positive return on your investment because I focus on executable solutions not telling you the problems you already know you have. From training to corporate (group) coaching to executive one on one coaching, my approach is to assess, create awareness, build a goal driven action plan and then execute. The bottom line question is "Not do you or your employees know it, but do you or they want to do it?" Please call for a free strategy session at 219.759.5601. - Visit Leanne Hoagland-Smith's Website |
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Linda RichardsonLinda Richardson is the Founder and Executive Chairwoman of Richardson, a global sales training and performance improvement company. As a recognized leader in the industry, she has won the coveted Stevie Award for Lifetime Achievement in Sales Excellence and she was identified by Training Industry, Inc. as one of the “Top 20 Most Influential Training Professionals.” Ms. Richardson is credited with the movement to Consultative Selling and is the author of ten books on selling and sales management, including Sales Coaching — Making the Great Leap from Sales Manager to Sales Coach, and Stop Telling, Start Selling. She teaches sales and management at the Wharton Graduate School of the University of Pennsylvania and the Wharton Executive Development Center. Linda is a frequent speaker at industry and client conferences, has been published extensively in industry and training journals, and has been featured in numerous publications, including The Wall Street Journal, Forbes, Nation’s Business, Selling Power, Success, and The Conference Board Magazine. Learn more about Richardson's sales training and performance improvement solutions at http://www.richardson.com web - Visit Linda Richardson's Website |
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Cheryl MatthynssensCheryl is a life skills coach, licensed Chemical Dependency Counselor and a 20 year entrepreneur. Cheryl's dedication to achieving a life of balance led to her expanding her teaching from the simple managing of life's daily challenges to adding financial well being as well. A direct marketer with DrinkACT, she is gaining ground in the online community with her concepts of making sure business owners, entreprenuers and employees have well rounded life styles. She opened up a small affiliate site - The Balance Guide- to help others find resources for mental and emotional well being. Visit Cheryl's blog to see more of the diversity beyond business she has began offering online at www.thebalanceguide.blogspot.com - Visit Cheryl Matthynssens's Website |
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