Market segmentation is all about communicating with groups of people who have similar needs

The benefits of this approach include:

• You get more attention (you know that you deserve it!)
  
• You are seen as an expert
  
• More effective marketing

Get more attention
In the 21st Century - we are all inundated by marketing messages.  It is said that we are swamped by some 3,000 on an average day.  So how do you ensure that your 'marketing arrows' get through?

The answer is to create compelling, consistent and relevant messages to defined groups of people.

When you talk to a defined group ('market segment') about their concerns - it is much easier to get their attention.  After all, you are talking about their challenges and their issues.

You are seen as an expert
People like dealing with specialists.  Imagine that you are the Senior Partner of a firm of accountants.  You need a new website.

You find a couple of local web development companies.  On the first homepage, it proclaims:

'We build websites.  No job too small.  Free quotations.'

The second homepage says:

'We build websites for professional services firms.  We help you to keep your clients happy and to find more of them!'

Who are you going to call?

Being seen as an expert in your field helps to differentiate your enterprise.  If you are in a crowded marketplace, this has got to be good news.

More effective marketing
This benefit happens because your marketing efforts are now 'singing off the same hymn sheet'.  Everything is in tune.  Your messages 'sound right' to each market segment you are talking to.

Prospective customers will come over and give you a big hug - because you clearly understand them and their needs.  And if the hugs aren't enough for you - they are pretty likely to give you their cash as well.  Whoopee!

How do you decide which segments to go for?

• If you are an established business - begin by analysing your customer list (both past and present).  Cluster together customers with the same profiles

• Think about the types of customer you like dealing with

• Consider which segments have the best financial prospects

• Conduct some market research

With regard to market research - you could of course hire a market research company.  However, if you can't afford this, here are some alternative ideas for you:

• Do some 'Desk Research' in your local library

• Carry out some research yourself, using questionnaires

• Find out as much as you can about your prospective customers

• Take a look at the Market Research section on my links page

Build an integrated marketing campaign
The next step is to sort your marketing out - so that it delivers consistent messages to your target market segments.

Case study
When you visit the Dell website - in order to see their products and services - you must first 'self segment' yourself.  Take a look at the bottom half of their homepage to see what I mean.

Dell operates one of the most successful e-commerce enabled websites on the planet.  One of the reasons for their success has been their decision to go with a market segmentation strategy.

Conclusion
If you adopt this approach - your marketing will be much more focused.  This means that your audience will be more prepared to listen to you.  In addition, as your messages are not being scattered - they are more likely to be repeated to the right people.

This in turn helps with brand recognition.  This is how 'famous name brands' and successful businesses are built.

So the rules in this game are very simple:

• 1)  Find clusters of people / organisations with the same needs
  
• 2)  Find out as much as you can about their situation
  
• 3)  Create compelling propositions, which address their needs
  
• 4)  Differentiate yourself
  
• 5)  Use the promotional mix to communicate your proposition
  
• 6)  Keep communicating!

About the author: Nigel Temple is a UK based marketing consultant, trainer, speaker and author. Visit www.nigeltemple.com for more information.