| In the development of any marketing campaign, | | | | big players in it. Don't be afraid to copy a |
| market segmentation is critical. Market | | | | successful idea of a larger competitor. Make sure |
| segmentation is the process of targeting a | | | | you don't infringe on any copyrights or |
| product, service or specific campaign at a | | | | trademarks. Remember, if you're a small business, |
| particular group or subset of a market that is | | | | you're not going to put a large competitor out of |
| likely to be more receptive to your marketing | | | | business but you may be able to win over a |
| message than the entirety of the market. The | | | | chunk of their business. |
| need for market segmentation stems from the | | | | One industry where you can see market |
| knowledge that customers are not all alike and | | | | segmentation at work is in politics. Political |
| have different needs and desires. Segmentation | | | | campaigns, to the chagrin of some, are heavy on |
| recognizes this fact and tailors a marketing | | | | marketing, spin and segmentation. For example, in |
| message to a particular group to maximize the | | | | Presidential politics, candidates first run in a |
| effectiveness of the campaign. | | | | primary to earn their party's nomination before |
| There are hundreds of potential market segments | | | | transitioning to a general election against an |
| that can be classified geographically, | | | | opponent from the other party. In the primary, |
| demographically, on the basis of behavior or in | | | | politicians tend to articulate a message that is |
| numerous other ways. Young people, baby | | | | going to appeal to the bases of their respective |
| boomers, tech-savvy customers, seekers of | | | | parties. Democrats will appeal to environmentalists, |
| luxury, low-income, elderly, car lovers, coffee | | | | peace activists, secular groups, abortion rights |
| connoisseurs, sophisticated, highly educated and | | | | groups and consumer advocacy groups, amongst |
| conservative are just a few examples of the | | | | others. Republicans will appeal to evangelical |
| many potential segments in a given market. | | | | Christians, low-tax interest groups, pro-business |
| In order for any business to determine the most | | | | constituencies, and more hawkish think tanks. |
| profitable segment for it to pursue, it has to | | | | Once the candidates earn the nomination, they |
| conduct some research. Segments don't tell you | | | | significantly alter their respective messages to try |
| when they want your product; you have to figure | | | | to appeal more to folks in the political middle. |
| out which segments would be recpetive to your | | | | Politicians alter their target segment depending on |
| product. You can do this by commissioning an | | | | the electorate whose vote they are seeking. |
| internal research project or outsourcing the | | | | Segmentation is crucial to the success of any |
| research to specialists that do this work regularly. | | | | business. Understanding your customers and their |
| If you are a small business and do not have the | | | | desires will make you a more efficient and |
| financial resources for such a venture, you need | | | | profitable entity. That's why Rolls Royce does not |
| to put in some extra work yourself. Talk to your | | | | market to low income individuals, and McDonalds |
| clients and get feedback from them about what | | | | does not target connoisseurs of 5-star |
| they like and don't like about your company. Use | | | | restaurants; it would be a waste of money. A |
| the various public resources at your disposal that | | | | smart business will allocate their marketing budget |
| contain information about your industry and the | | | | wisely and that starts with market segmentation. |