Marketing Segmentation | Where Bigger Isn't Better

Let’s be real. If you have a business, your probable goal is to find success and stuff your wallet. Making money is fun. To do so, you need to get your product out there through some sort of marketing effort. The challenge is there are a ton of ways to do so and a zillion people on the planet, so how do you tackle that effectively? The one simple fact is that you never want to target everyone. We’re all different with different needs. Instead, marketing segmentation and finding your target market is your strategy’s very best friend. Find the common characteristics and needs of your desired customer, as well as the folks who respond to marketing similarly. By doing so, not only will you be able to market your business effectively (and avoid putting your efforts toward a customer who could care less), but taking the time to understand your market leads to customer loyalty and we all know customer loyalty is gold.

So, how do we tackle this puppy? Segmenting your market requires research, a bit of soul searching, and the willingness to shift gears when the outcome differs from your assumptions. First, narrow down the segments by researching:

• DEMOGRAPHICS [the core] | age, gender, relationship/kiddo status, education, income

• GEOGRAPHICS | location, population, terrain

• PSYCHOGRAPHICS | values, personality, interests, opinions

• USAGE BEHAVIOR | actual or potential usage

Once you’ve got that broken down, look for meaningful characteristics. Who has common needs, a common way of responding to marketing, but differs from other segments? Those are your people. Be mindful of identifiable, sizable, stable, accessible, and congruent segments, though. (Huh!?) Which segment is clearly identifiable, supports your sales needs, has predictable buying habits, is reachable, and aligns with the company’s objectives and values. (Psst . . . bigger isn’t always better.) Say hello to your segmented market! From there, you can intelligently create a target marketing strategy by tapping into your newfound knowledge and narrowing down how many segments meet your end goal – formally known as your undifferentiated (one huge segment), differentiated (more than one segment), or concentrated (niche segment) target market. Fancy.

A friendly word of caution, however. Be mindful of stereotypes and be one of the cool kids who embraces gender-neutral marketing. My husband has had a vintage clothing side hustle for over 20 years. There’s a well-known fact in the vintage community that clothing has no gender. That sequined gown isn’t necessarily going to a woman. Those grungy coveralls sporting a Fred patch isn’t just for the boys. In fact, after our flea market last month, Sadie’s rocking the Fred coveralls and a bearded gentleman in his 60s shines in his fabulous new gown. At the end of the day, your customer is human. Plain and simple. This adds a unique, yet exciting challenge to your marketing game.

Want a helpful hint? Marketing is a visual experience, so why not help those marketing efforts by bringing the data to life for everyone involved in executing your game plan? A buyer persona does just that. It’s based on the real data, focusing on meaningful characteristics, with the goal of clarifying the motivations and needs of your targeted customer by creating a semi-fictional Sally or Joe one-sheeter.

Above is an example of my buyer persona. In this case, I’m obviously a real person, but you get the idea. I’m not your typical girl. I have two 85" TVs on my living room wall for football, I drive a mean lifted truck (while my hot, biker-looking husband proudly and intentionally drives a minivan), and I’m pretty sure I’d break myself if I wore anything above a boot heel. While I might be a theoretical nightmare for a business, my persona is clear. I’m picky (and neat), efficiency and order make my heart sing, I’d rather shop online than interact with a salesperson, I’m not a big fan of social media, and I’ll gladly take my business elsewhere if your customer service skills are lacking. That said, if your business brings value through quality and respect, then my true self is super nice, pretty chill, and an incredibly loyal person (often to a fault). Basically, be nice and you’ve got this!

Marketing can be a bit complicated, but it’s a journey that’s well worth the effort if you take the time to respect the process and do it right. Go (not too) big or go home!