Market segmentation is the marketing technique of strategically categorising your target audience by ‘needs-based’ group profiling.
It’s the equivalent to either slicing up a loaf of bread, or breaking up an orange into segments, before eating it.
Sure, if we’re hungry enough, we eventually might want to eat the whole thing…
…but it’s only feasible and physically possible to get the job done in pieces.
This is the idea behind market segmentation.
Splitting up market share into easy bite sized chunks.
Needs-based market segmentation
This is the root theory behind all market segmentation.
You start with the needs of the prospect (user).
And the best in the business, when it comes to segmentation, know do it better than the rest simply because:
They were once in those shoes.
They therefore know the inner workings of the prospect’s mind…
…why they are looking for a solution
…what they are afraid of or want to avoid as risk
…what kind of results they need
…what will motivate them to buy
EVERYTHING about the need that feeds the desire to solve the problem is perfectly understood.
This makes for a far more streamline and persuasive sale (straight to the point) – no fluff.
(And ultimately, a higher rate of success.)
Example market segmentation
This following example was taken from the wpbeginner.com site owned and run by Syed Balkhi (Awsome Motive).
It’s a detailed demonstration of how a successful serial software vendor segments his audience through basics visual cues on his blog.