Market segmentation and target marketing go hand-in-hand. Since the introduction of sophisticated tools in the last decade, target marketing is trending among the members of Generation Z. It involves breaking down the market based on various parameters and then concentrating your efforts on a specific and focused market segment, which is likely to turn into loyal customers. That particular market segment usually consists of people whose desires and needs closely match the features of the product you are offering. Target marketing is a well-thought-out process to help new businesses reach their sales goals and become successful. It is one of the significant approaches the SEO company use in Los Angeles.
The beauty of target marketing lies in aiming your efforts at a specific group, which makes the distribution, pricing, and promotion of your services and products more accessible. It is a cost-effective process that can make your marketing services more manageable and help you take your business to the next level with flow and ease.
For example, if you have a real estate business that offers selling and buying services of the client’s home. Instead of marketing it via a newspaper that goes out to everyone else in the market, the realtor should first identify the target market for its real estate services. He could then target the campaign via email, Facebook ads, or flyer distribution in areas where most of his target audience lives. Secondly, it will be easier for you to do all the digital marketing for your target audience, may it be working on the SEO plan, its content marketing, or social media marketing. The benefits of target marketing are multifaceted, which include increased return on investment and bringing in more customers.
Apart from this, you can also do social media marketing via targeted tools. LinkedIn, Facebook, Twitter, and Instagram have sophisticated tools that can help you focus your customers based on parameters like geography, industry, income, and age.
There are several ways the SEO company in Los Angeles recommends approaching market segmentation, however, the three most common types are psychographic segmentation, geographic segmentation, and demographic segmentation.
Let’s discuss each of them separately:
This method allows you to divide your target market based on lifestyle preferences and socioeconomic class. The scale of the psychographic segmentation ranges from highly educated and wealthy at the top to the unskilled and uneducated segment at the bottom.
Lifestyle preferences involve parameters like interests, beliefs, values, etc. For example, those who prefer urban lifestyles vs. rural lifestyles, people who love pets and those who do not, or people who have a keen interest in environmental issues and those who would rather focus on other issues.
The basis of psychographic segmentation is the choices people make based on their socioeconomic class when purchasing goods and services.
As its name suggests, geographic segmentation involves parameters like city, zip code, country, province, region, or neighborhood. Geographic segmentation is done on the idea that a group of people who are living in a specific area may have similar needs. For example, if you have an elderly care center, then you can target your marketing campaign to an area that is inhabited by a large number of older residents.
Demographic segmentation is done on parameters like gender, age, religion, race, education, marital status, and income level. The most common yet critical criterion which is used for identifying target markets is demographic segmentation. It means that the knowledge of demographic information is essential for digital marketers and business owners. For instance, if you are a liquor vendor, you’re probably targeting your product to the people who fall into the age group 21-34, taking into consideration that as people age they may prefer wine to liquor.
Before defining your target market, make sure you get your hands dirty with some cases. According to a study, McDonald’s is the most successful example of demographic target marketing.
Now here is a huge tip before we end this article. Your target market is not “everyone.” As a business owner, your task is to define the target group and understand the needs of a specific niche so that you can dominate it.
The better you understand your target market, the better the ROI of your ads. As the depth of your audience insight grows, you will have higher conversion rates. To move ahead in your marketing campaign more strategically, track the performance of your ads to see if you achieved any results in a real sense. Once you design a baseline, you can do A/B testing to see what works the best and what creative approach you need to tweak a little further.
Once you define your audience, it is essential to revisit your audience research as needed. This is necessary because your target market may change over time as your services and products evolve and develop further. If you want to get ranked in the search engine, share your target market list with the SEO company in Los Angeles to reap the benefits in the long run.