What is Market Segmentation? How to determine your target audience?

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What is Market Segmentation? 

Market Segmentation is a framework of analysis used to understand the target audience of one’s business. It can be very difficult to look at your target audience as one big group because of its large size and scope.

Thus, it is essential to break them down into more manageable groups which could be on the basis of age, demographics, need level, etc. This helps the target audience to express their needs and interests more effectively. 

Basically, market segmentation is the process of breaking down your target audience into manageable groups on the basis of age, demographics, or other features which can influence their interests, needs, and buying behavior. 

Make sure you don’t inhibit yourself to certain segments such as age and gender. Feel free to divide the overall audience as per whatever characteristics suit the needs of your product. Moreover, we suggest you to always be open to reevaluating your segmentation because nothing lasts forever and change is irreversible. 

Market segmentation paves the way for organizations to track the changes in customer behavior and on that basis internal processes can be improved to respond to these customers differently. Before we dive further deep into market segmentation, let’s understand what the target market or target audience is. 

How to determine your target audience?

Defining your business’ target market may seem very easy, but it requires your careful attention and evaluation. 

Knowing your exact target audience and the product you are aiming for them is crucial. This is because, very rarely, businesses are able to offer a product for the entire world. Moreover, trying to sell for the most diverse market is very complicated. 

Hence, defining your market is also about accepting the fact that you cannot please everyone in this world. Your aim should be to engage with those customers who can bring the most value to your organization and figure out who is specifically going to benefit the most from your product or service?

FAQs

Q: What is Market Segmentation?

A: Market Segmentation is a framework of analysis used to understand the target audience of one’s business. It can be very difficult to look at your target audience as one big group because of its large size and scope. Thus, it is essential to break them down into more manageable groups, which could be on the basis of age, demographics, need level, etc. This helps the target audience to express their needs and interests more effectively.

Q: Why is Market Segmentation Important? 

A: In order to reach a suitable audience for your product, Market Segmentation is important. Market segmentation often requires market research where the customer’s needs, problems, and expectations are understood at a deeper level. This way, marketing campaigns can be personalized for a segment of the target audience for higher engagement and conversion. 

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