How do you use market segmentation and targeting to customize your marketing strategy?

1. Identify segments based on demographics, psychographics, or behavior. 2. Analyze segment attractiveness in terms of size, growth, and alignment with objectives. 3. Select target segments that align with company capabilities and goals. 4. Customize the marketing mix for each target segment. 5. Implement tailored marketing initiatives across appropriate channels. 6. Continuously evaluate and adjust the strategy based on feedback and market dynamics.

Segmentation & Targeting are 1st two components of essential STP marketing model, an important part of marketing strategy. Segmentation helps in creating homogeneous groups of people having similar needs basis their demographic & physiographic profiles. It helps businesses to decide on their Market targeting. Targeting strategy gets decided basis nature of product, product life cycle stage, Competition, resources etc. Organizations have to choose a targeting strategy (Undifferentiated, differentiated, concentrated, micro marketing, local marketing etc.) which suits them the most. Proper market segmentation & selecting the best suited targeting strategy is key to the business growth which Organizations' need to plan & execute prudently.

In the retail industry, customers can be segmented based on their shopping habits during different times of the day, week,month or year. Retailers can tailor their marketing strategies & promotions to target early morning shoppers,weekend shoppers holiday shoppers etc. By understanding the temporal patterns of customer behavior, businesses can optimize their sales & marketing efforts to capture opportunities at specific times In the beauty industry, customers can be segmented based on their skincare concerns, such as anti-aging, acne treatment,hydration,etc. By identifying the key benefits that resonate with different customer segments,businesses can develop targeted messaging & product offerings that effectively address customer needs

Additional ways to approach market segmentation is by using SUB-SEGMENTATION an example of this concept it is when dealing with diversity and inclusion or a multicultural segment could be based on cultural background, ethnicity and demographics and psychographics. You can imagine it like a sub-segment inside of a big segment.

Niche marketing involves focusing your efforts on a small, specialized segment of the market that has distinct & specific needs. This strategy allows you to serve a particular group of customers who may be overlooked by larger competitors. Niche marketing can be very effective in international markets where you can identify specific segments with unique preferences or requirements In a customized marketing strategy, you tailor your marketing efforts to meet the specific needs of different customer segments. This approach involves creating unique marketing campaigns, products or services for each segment. It allows you to offer personalized solutions & can be particularly effective when dealing with diverse international markets

Market targeting is to decide which market segment organization want to sell by communicating benefits & usage of their products. It is decided by factors like: nature of product & category , resources, market dynamics etc. Types: Undifferentiated: Mass marketing, catering common need of the entire market. Ex-Mass products with huge TG Differentiated: Segmented targeting approach, different products for different TG. Ex- Multi e brands FMCG companies, Auto mobile etc. Concentrated: Focused targeting to a niche group, catering to a specific need. Ex: swimwear, pet products etc. Micro Marketing: Personalized product & communication. Ex: Hyper personalized products Other targeting approaches: Local Marketing & Individual Marketing

Market targeting when it relates to international marketing could also be by market value. When I work with international marketing it is sometimes difficult to attend to the needs of many different markets so a way that can be done is by evaluating the market potential, market size and the growth potential and after this selecting clusters and then through this selecting further clusters.

By targeting price-sensitive segments with value-based pricing & premium segments with premium pricing, companies can maximize revenue & profitability while meeting the diverse pricing expectations of their target audience. Instead of using a one-size-fits-all approach, companies can focus their efforts & resources on the most profitable & high-potential segments, maximizing return on investment & enhancing overall business performance. By focusing on specific segments with unique offerings, companies can differentiate themselves from competitors, establish a strong market position & build a competitive advantage that is difficult for rivals to replicate.

Market segmentation can help you manage your resources and your marketing budget as well as it can support you in leveraging the different relationships and influencers within markets. For example, you may have a client in Brazil that may be an influencer in China. A success story in Brazil may be able to influence a China buyer, for example. Understanding the segments and the influencers can help you in deciding what to prioritize and how to allocate your resources. Decision making as an international marketer is a cumbersome task because there are many moving parts in the process, segmentation facilitates the process and the decision making and the ROI of these choices.

Cultural Segmentation:By understanding the values, beliefs, customs & cultural norms of different regions, you can adjust your marketing strategies to resonate with local audiences. This could involve adapting messaging, imagery or even product features to suit cultural preferences. Fast food chains serving rice as a side dish in Asian countries,while offering fries as a side dish in Western countries Technographic Segmentation:Offering high-end smartphones with advanced features to tech enthusiasts and simpler, budget-friendly phones to price-conscious consumers Lifestyle Segmentation:Offering athletic wear for gym enthusiasts, comfortable leisure wear for those focused on relaxation & trendy activewear for fashion-conscious individuals

Another way to segment is by market size and growth potential as well as by SBU (strategic business unit.) Sometimes one organization has different products that have different market segments within themselves, making a market analysis and then segmenting can be really helpful.

As you are addressing marketing potential a helpful task is to see the relational value that you have for that market. What kind of stage are you in that market. If you are a beginner in that market your relational value is low vs. if you have been in that market for a while. Managing the market size as well as the level of credibility you have in the market can be truly helpful in the decision making process.

Often it is really easy to miss the nuances about different markets. Also, it is really easy to make assumptions about core markets such as the big markets and continue to invest there. What it is important is to see the trends, see the market size and value as well as the growth potential. Sometimes investing in market clusters can really help increase ROI.