Segmenting your local market can be a difficult and daunting task. This post will hopefully provide you will a few tips and tools to make this process easier for you and your business.
” Market Segmentation is a classification of potential private or corporate customers by one or more characteristics, in order to identify groups of customers, which have similar needs and demand similar products and/or services concerning the recognized qualities of these products, e.g. functionality, price, design, etc.” – Wikipedia
This process of segmenting your audience is very important. Knowing your audience is one of the best things you can do for your business. They more you understanding and feel that you can relate to your customer, the better your business and sales team is going to function. Here are a few examples of normal segmentations.
- Household size
The first step to segmenting your target is to decide where your customers are. What is the surrounding radius of miles that your audience covers? After you have found this distance. Look at the different cities, neighborhoods, or even districts and define them with the different categories.
PRIZM from Nielsen Analytics is a great tool for distinguishing these differences. PRIZM allows you to type in the zip code of the area your planning on segmenting. It then gives you segmentation based on their category names. For example If you typed in the zip code for East Lansing MI (48823) these would be the results. . .
Once the results show up, like the latter results, it gives you the different segments. The results are not in any specific order with the free online version, but would be listed in order from larger segment to smallest with a paid version. Then PRIZM allows you to click on their specific segment names and view the statistics for that segment. For example these are the results from “Boomtown Singles”.
Once you have successfully decided on your target market, make sure you decide how and when you are going to market to those specific segmentation groups. Good Luck and have fun segmenting your target audience.