Four Benefits of Market Segmentation: Benefit 1 – Improving Products
Posted by Linda in Market Segmentation, tags: Benefits of Market Segmentation, product developmentFour benefits of market segmentation include:
- Improving the marketability of your product or service,
- Improving your marketing strategies,
- Improving your marketing tactics,
- Improving your business’s marketing position.
Benefits of Market Segmentation - Products
This post covers the first of these benefits. I cover one of each of the remaining three benefits in the following posts.
Four Benefits of Market Segmentation: Benefit 2 – Market Strategies
Four Benefits of Market Segmentation: Benefit 3 – Marketing Tactics
Four Benefits of Market Segmentation: Benefit 4 – Market Position
Market Segmentation
Improves Marketability
Of Your Product or Service
Market segmentation benefits you, as a small business owner, by enabling you to determine characteristics that your target market members value most. It also enables you to design or select your products or services to match the wants and needs of your target market members.
If market segmentation reveals that your target market members most want safety, security and reliability, your product must be very different than if they most want excitement and fun. In fact, these desires are so different that they actually demand different products.
Market segmentation enables you to determine your target market’s wants and needs. You just use multiple demographic segments to determine shared characteristics across segments, including personality (psychographic) and behavioral characteristics.
You can then use the characteristics to improve the marketability of your present products and to enhance your new product marketing strategy.
It’s the ease in discovering shared characteristics that makes my matrix market segmentation such a simple, yet powerful process.
You can get my ebook – Know’em, Sell ‘em: Discover The Best Appeals For Your Target Market. Just click the art in the upper left corner.
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Posted 4-7-08:
Four Benefits of Market Segmentation:
Benefit 1 – Improving Products
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plz try to add benifits of marketing segmentation in case of hospital and health care management …
Hi Linda;
I think market segmentation also helps a small business owner, like myself, select new products to add to their line. By knowing your target market, you will know the newest trends that are specific to them, not only with your advertising but with your product line. Thanks, Linda.
Deb
Hi Debbie,
Thank you for this insightful comment. You’re right market segmentation can aid product decisions from features to pricing and distribution.
And once market segmentation reveals the demographics representing your target market, it’s easy to find people with those demographics online. So you can participate in communities of these people to learn exactly what they want enough to part with their hard earned money.
Warmly,
Linda