Have you ever come across a marketing campaign ad and thought, “This is it! I never knew how much I needed something like this until now.”
You might think that a brand has just happened to know what you wanted and created a product for the same. However, content marketing services do not work like that. All the marketing campaigns you see around you are tailor-made for people with the same interests and lifestyle as you.
But how do companies know what my likes and dislikes are? Well, they use market segmentation.
Market segmentation involves subdividing the target market into categories. These categories are niche as all the people in this have similar characteristics. These categories help the agencies to create marketing strategies that are specifically targeted to certain people.
There are 4 types of market segmentation used by a digital marketing company to market your brand.
Demographic segmentation includes categorizing people based on observational differences. This includes age, sex, income, education, ethnicity, and so on. This segmentation also becomes a base for a marketing firm, which can be combined with other forms of segmentation to find the right target audience for your brand.
The data collected for this segmentation includes a few methods. Firstly, if there are any products that are already divided based on a demographic, the sales report becomes the data. This is the case for things like perfumes, clothing items, skincare and makeup, toys, and so on.
A digital marketing firm might directly ask the customers in the form of feedback forms, surveys, online pollings, quizzes, and so on. Lastly, they can also approach third party data providers that will find out the required data for them.
An internet marketing company will use this form of segmentation to create marketing strategies that target a particular demographic. The marketing campaigns and ads will be on this segmentation. For example, marketing consultancy firms while marketing a luxury, anti-aging cream will focus on people that fall in the age category of 45-55 and whose income is above the average income.
Psychographic segmentation focuses on the psychological and emotional attributes of their target audience. This helps a digital growth agency to understand customer motives, interests, lifestyle, attitudes, needs, motivations, and so on.
For example, to promote the tea brand, a digital marketing company will study the spending habits and trends followed by millennials who drink tea. Through psychographic segmentation they will see what kind of lifestyle millennials follow, whether a particular type of tea is preferred over the other, how do they consume tea (homemade or shops), and so on.
Thus to understand their lifestyle a marketing firm will look into how people interact with your brand, the content they prefer, their daily engagements, and so on.
Behavioral Segmentation involves dividing the target audience on the basis of their consumer behavior. This includes their behavior with your brand, channel of shopping, loyalty, coupons used, interaction with your competitors, involvement in current industry trends, and much more.
Digital marketing websites usually use the brand’s website cookies, previous order data from customers to understand consumer behavior.
For example, to market a new line of handbags, the marketing firm will look into the customer behavior of people who have regularly bought bags from that brand, who have searched similar words like “sling bag” “clutch” and so on. The agency marketing the brand might also set a particular time period such as the last 2 years or 6 months to target relevant customers.
As the name suggests, geographical segmentation includes the categorization of customers based on their geographical area. This can include a geographic boundary such as a city, locality, state, country, and even a continent. Or, it can include a type of area, such as ZIP codes, radius from a certain point, population density, areas with a particular climate, and so on.
This is especially important for a location-based marketing campaign since the same conditions may not be present throughout the country or continent. For example, a trench coat brand will prefer to market in places with a colder climate. Similarly, luxury cars will not be marketed in a rural or low standard of living area.
We hope this article helped you understand how a digital marketing firm uses market segmentation to promote your brand.
Market segmentation becomes the crux of the next marketing campaign for your brand. This is why a digital marketing agency will focus on targeting certain customers and sections of society to increase sales as they are more likely to buy them.
Toshiko’s Tip of the Day: As a digital marketing company might hire a third party to collect data, they make sure that the data is authentic. Additionally, the third-party must not use any illegal or unethical means for data collection. Thus, as a brand, always ask for a report on the methods and sources used.