
Market segmentation is an essential basis for many successful marketing strategies. The segments created are composed of consumers who will respond similarly to marketing strategies and who share traits such as similar interests, needs, or locations. Carefully devised segments allow tailoring the marketing mix to more individual customer needs. Thus, they help to invest in marketing spending more effectively. Market segmentation is the foundation for better targeting of different customer groups, and it enables businesses to grow in sales and profits by:
- Reaching additional customers
- Differentiating prices and absorbing purchasing power
- Achieving customer lock-in, up-selling and cross-selling
- Staying innovative
- Prioritizing your target audience
- Personalizing your marketing campaigns
- Reducing the risk of an unsuccessful or ineffective campaign