If everyone was the same, this would be easy. Target marketing works, here’s why.
People look exactly the same on paper. Same age, household income, educational level…perhaps they even live in the same neighborhood. But this is just a small part of the picture. The truth is that every person has their own interests, opinions, experiences, preferences, and more. Essentially, each person is different.
We’re talking about target marketing, or market segmentation, which can be described as the identification of portions of the market that are different from one another. By breaking down your customer base into smaller groups, you can better satisfy their needs and desires, therefore adding a higher value to yourself and your customer. Everyone likes to know that they’re on your mind, and this reinforces that. Below are two examples of segment breakdowns for your audiences, both B2C and B2B. These types of audiences have both similar and different segment categories that can be used.
Market segment types for B2C audiences
There are literally hundreds of variables you can apply to break down your customer base. Most companies can’t rely just on one type of customer to keep them in business. Here are some general consumer demographics you can use for targeting your audience and potential customers.
- Region – by continent, country, state, or even neighborhood
- Size of metropolitan area – segmented according to size of population
- Population density – Often classified as urban, suburban, or rural
- Climate – According to weather patterns common to certain geographic regions.
- Age – can be segmented into two or more groups.
- Income Level – usually segmented into 3 or more based on yearly gross income.
- Family size – can be segmented into number of children/ pets/ immediate family living situation.
- Family lifecycle – single, married, etc.
- Generation: baby-boomers, Gen X, Gen Y, Millennials
- Occupation – can be segmented into industry categories or different levels in a specific occupation
- Education Level
- Shared Activities – Usually segmented into shared clubs, groups, partnerships, sports, etc.
- Common Interests – Usually segmented into types of books, movies, music, people, etc.
- Shared known Opinions – Political views, religious views
- Attitudes – Based on behavioral analysis for buy frequencies
- Benefits sought
- Usage rate
- Brand loyalty
- User status – Segmented into potential, first-time, regular users, etc.
- Readiness to buy
- Occasions –Holidays and events that stimulate purchases like birthdays or office parties, etc.
Market segment examples for B2B audiences
Businesses have much different purchasing practices than customers. They tend to purchase in larger quantities, they evaluate their needs in more detail, and have multiple working parts when it comes to purchasing. Businesses are always changing, and their needs vary with each customer they cater to. Here are some general business demographics you can use for targeting your audience and potential businesses:
- Proximity to other business
- Distance to common shipping hubs
- Purchase order history
- Company Size
- Decision Making Structure
- Purchase Structure
- Usage rate
- Buying status: potential, first-time, regular, etc.
- Purchase procedure: sealed bids, negotiations, etc.
It’s important to remember that your market segments are different enough to warrant a different approach, but similar so they fall under the same promotion.