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It is necessary, in any organization to begin a marketing strategy by studying in depth the business project to be carried out, by defining and appropriately formulating it. That is why this article will discuss one of the common marketing strategies that you can apply in your business.
Segmentation marketing strategy
In the 21st century, considering the market as a unit and addressing it with the same offer is a mistake. It may have worked in the 1920s when economies of scale were the winning horse of companies. In those years there were very few options for consumers, and they had no choice. The following quote from Henry Ford is an example of the old paradigm: “The customer can choose the car of the color he wants, as long as it is black." Can you imagine, at present, a car manufacturer that only manufactures them in black?
Today there is an entirely different scenario. The global economy has moved from the shortage of supply and options to saturation. Also, the market is made up of various customers with different needs. So if you want to optimize your marketing budgets, it is necessary to divide the market into groups that have the same needs and qualities. In this way, you can offer a different value proposal that suits each target group. The segmentation strategy is one of the primary marketing strategies.
There are four variables to segment the market:
- Geographic: countries, cities, postal codes.
- Psychographic: personality, social class, lifestyle.
- Demographic: income, education, gender, age, profession, nationality.
- Behavioral: level of fidelity, the pursuit of profit, frequency of use.
Here are the different targeting strategies you can follow:
Undifferentiated Strategy: Despite having identified different segments with different needs, the company chooses to address them with the same offer, in order to try to reach the maximum number of possible clients.
Differentiated Strategy: you address the different market segments that you have identified, but with a different offer for each one of them. Although this strategy has a higher cost, it will allow you to address the individual needs of each selected segment.
Concentrated Strategy: you will only address with a single offer to those segments that demand this offer, you will avoid marketing in other segments.