How do you use market segmentation and positioning to differentiate your product or service?

Marketing through market segmentation and product positioning is an essential and effective way to not just reach the right audience but also highlight your product and its need to them, ultimately converting them as customers. Marketing is most successful in cases where the product positioning is done in a manner that it reaches the right segment of the audience that can not just increase your sales but also help in marketing through word of mouth within the same segment.

In my experience customer segmentation works the best when you find the common psychographic that all have and then break it down into multiple psychographics and then demographics.

Market segmentation is the art of dividing a broad customer base into subsets of individuals with common needs and behaviors. This isn't mere categorization; it's a strategic process that facilitates targeted marketing. By understanding characteristics such as demographics or psychographics, we can craft messages and offers that resonate deeply. At Growth Gurus, we've utilized this technique, paired with tools like Klaviyo, to create personalized experiences that not only engage but build lasting connections. It's a sophisticated approach that turns broad marketing into focused, effective communication.

As my wise father told me years ago when the newspaper asked to advertise to the rest of the delivery area, He said why? Why pay to advertise to people who are not in your area of business and would not travel to buy what we are selling. It would be a waste of money.

A great example of positioning is Yeti. They positioned themselves as the brand for outdoor enthusiasts. They promoted at rodeos, festivals, and hunting meetups. They promote now with their brand people with massive farms, famous bull riders, and hunters

Positioning is the unique space you are carving out for your products or services in your customer or prospects mind. What is the core purpose of your product/service? How are you making your customers lives easier? What makes you different? What are you best in the world at? What do you offer that competitors don't? What do you understand about your customers that others don't? How do your customers feel when they interact w/ your brand?

A big thing to help with segmentation is looking to understand correlation vs. causation. Looking to see if things that correlate might have an alternative correlation also is crucial.

Segmenting your market begins with deep research to understand variables like age, income, or usage patterns. By grouping customers with similar characteristics, you create targeted profiles. At Growth Gurus, we analyze and evaluate each segment's attractiveness, such as size and growth, to select the right targets. This approach, supported by tools like Klaviyo, ensures we connect with customers in ways that align with their specific needs, turning broad strategies into personalized engagement.

The single best way to measure product benefit - market segment fit is the humble pay per click ad. Run ads targeting every audience you think might be interested in your product and simply send traffic to your home page. Once you have a few audiences that have showed the highest intent to purchase- as measured by click thru rates- you can take the next step. Now keep take your ads to your website and change the headlines. Positioning your product in every way possible. Once your done, you’ll know which audience segment is most interest in which product benefit.

The benefits of market segmentation and positioning are vast. By crafting tailored solutions, you enhance customer satisfaction and loyalty, create a competitive edge, and amplify efficiency. It fuels innovation and expands market share and revenue. At Growth Gurus, we've utilized these principles to identify unique opportunities, differentiate ourselves, and create specific value. This personalized approach connects with customers on a deeper level, strengthening relationships and business success.

Market segmentation is a combo of science and art. Some markets are more mature than others but each has its own challenges. B2B markets may seem less complex than B2C but the devil is always in the details. Market segmentation requires careful and detailed analysis and it helps to have some one with domain experience to decipher the cryptic and subtle variations between segments. Sometimes mature markets have standardized segmentation for the last say few years. But it is easy to miss a more recent change - for example, how rural markets buy consumer goods has changed dramatically in the last 5 years with online commerce. The buying behavior has led to new market sub-niches which secondary research may not reveal.

Market segmentation and positioning come with challenges, such as gathering reliable data, selecting appropriate variables, and finding the right segmentation balance. Adapting to shifting customer expectations, market trends, and competitors requires agility. Measuring performance and profitability adds complexity. Despite these challenges, at Growth Gurus, we've leveraged tools like Klaviyo to refine our approach, allowing us to navigate these obstacles and create strategies that resonate with our target audience.