The Importance of Understanding and Applying Segmentation

A company’s dream is to have the popularity and fame that brings a bunch of people’s attention to their product. But what happens sometimes is that companies can’t please everyone, every person has different likings and opinions when it comes to the things they buy, let it be food, clothes, or technology. That’s why companies use segmentation, which is the process of grouping customers within a market according to their similar needs. By tailoring marketing strategies and messages to each segment, businesses can increase the effectiveness of their campaigns and optimize their resources.

A good example of this is the car industry, and the multiple styles of cars that each brand has. Toyota sells sedans, crossovers, SUVs, minivans, and trucks to have different options for everyone. The sales of these vehicles change depending on the needs of the customer, if a person has a big family, they will probably buy a minivan or an SUV but if they are young and live by themselves, they will probably buy a sedan. The same happens in the food industry, take Lays Chips for example. They have different flavors of chips so if a person doesn’t like the Barbecue chips, they might like the Sour Cream and Onion chips or the Ranch Chips. They also have different types of chips, like Lays Poppables, Lays Stax, and Lays Wavy.  It’s all about giving people options, and when it’s in a market like the food industry its incredibly important that people have options.

When it comes to the preferences people have there is no way to really appease everyone without giving them a lot of options. The purchases people make on the day to day are subjective and as a brand you need to make sure you can give different types of people what they like. Segmentation allows companies to target specific groups of people with specific products based on their characteristics and traits.

Image by: Rodrigo Guerrero