Segmentation rules and their use in segmentation base
Segmentation rules are a set of characteristics that are used by marketers to divide consumers and the market in general into groups that can be targeted with specific marketing methods. The importance of these rules lies in their ability to give the marketer a clear vision of the points of similarity between consumers and facilitate them when developing a marketing strategy and focus. On the important and necessary points, the following are the most important things mentioned in the segmentation base.
Market segmentation
Market segmentation is a process in which potential customers are divided into multiple, clearer segments that are determined based on a set of characteristics that are similar to customers, such as location or interests and needs. Similar characteristics between customers are in one or more aspects, which makes it easier for marketers to customize A marketing strategy for each department and segment to meet their needs.
The importance of market segmentation rules
Companies deal better with customers who belong to a specific category. Here lies the importance of the segmentation rules, which we mention in two points:
- The segmentation base helps marketers create a marketing mix for all different customer segments, which helps achieve good results.
- It increases the success rates of marketing plans.
Market segmentation rules
The division segments must be homogeneous, as there must be some common points between individuals so that the marketer can benefit from it and use it in developing a marketing strategy. Division is based on the principle of dividing the market into subgroups, as we mentioned previously, and this division is subject to a set of specific rules, such as Age group, geographical location, interests, and other rules that we mention below:
First: Division based on type
Gender is one of the most important basic rules that is used in dividing the market, as the interests of both males and females differ in many needs, and what marketers do is that they focus on a different marketing strategy for both.
Second: Division based on age group
Division by age group is one of the best rules of division, which is due to the presence of different products that cannot be used by all age groups, so this division creates a marketing strategy that works on a broader communication to reach the largest consumer base.
Third: Division according to income
The purchasing power of consumers depends on the individual’s monthly income, as it is one of the main factors on which the product is marketed, as the market is divided according to income into three groups: the first are those with high income, the second is middle income, and the third is low income.
Fourth: Division based on consumer profession
The consumer's profession has a direct impact on the purchasing decision. There are products that may be a luxury for businessmen while they are basic needs for an ordinary employee. The products that meet the needs of a specific audience differ and are not the same for others.
Fifth: Division based on lifestyle
Lifestyle includes multiple groups such as marital status, hobbies, and interests. All of these patterns affect consumers’ purchasing decisions, which has prompted marketers to segment the market based on people’s different lifestyles.
Sixth: Geographical division
Geographical division is one of the most important types of division that marketers rely on, as this type of division helps in developing a marketing strategy tailored to everyone despite their different geographical location, which may be the primary motivation for purchasing specific products in one region over others, depending on the needs of this region and the shortages in it.
Seventh: Demographic division
Variables Demographics It is the group of elements related to consumers’ lives in general, such as age, gender, marital status, profession, location, and religion. That is, it is combining the previous points and putting them into one division. It is one of the most common ways to divide the market. This type of division can be seen when marketing specific products such as cars and smartphones. And clothing, which is more subject to the demographics of the market.
Eighth: Behavioral division
The segmentation base is done through the behavior of the audience, its repeated uses and preferences, as well as their knowledge of the product. They are divided into: consumers who know the product, others who do not know the product, customers who have used the product, customers who are using the product for the first time, potential customers, and other segmentation methods that depend on the products. And your consumer behavior towards your brand.
Read also – Product packaging levels
benefits segmentation base
Market segmentation offers a number of advantages and benefits to companies, including:
- Meet customer needs
Different customers lead to different needs, and market segmentation works to identify these differences and place them in homogeneous groups so that it is easy to know their needs and meet them.
- Know the weak points in the market
By dividing the market, you can identify non-target groups in the market in general that many companies ignore, which enables you to exploit and benefit from them.
- Increase the investment rate
Segmenting the market works to serve customers and provide their needs better, in addition to reducing spending and raising the percentage of sales, which of course leads to raising revenues and increasing the return on investment.
- Control the market and attract new customers
Customers always prefer companies that understand their needs and provide them in simple and easy ways, which is the role played by the segmentation base. Market segmentation also increases competitive advantage, which increases your company’s value in the market and increases your market share.
Therefore, segmentation rules are among the best methods that are used by marketers to reduce marketing costs and enhance their communication with customers, as market segmentation determines marketing plans and targets the designated audience through the segments that are developed, which brings results to the company. Better and achieve a higher profit return, and thus we have learned about the segmentation rules and their use in dividing the market segmentation base.
