How to Determine the Right Market Segmentation Strategy

How to Determine the Right Market Segmentation Strategy
How to Determine the Right Market Segmentation Strategy

What is market segmentation and why this strategy can be efficiency of your marketing performance? How do I determine the appropriate strategy in performing market segmentation? Check out the full explanation below! Like an archer, a successful business can definitely determine the right target market. An archer must already know how much power it must take to reach the target. When the target is close, it means there is no need to pull the arrow too far so that the power is not wasted. But if the target is far away it definitely takes more power to reach the target. For that is required whose name is market segmentation according to “target”. Unfortunately in Indonesia there are still many business people who do not know for certain the market segmentation of their products.

All products owned are considered the same, it can be for all circles. As a result, the business is running less focused and lacks targeted primary targets, so the resources it owns are wasted instead. It is such that it is dangerous in business, because it can turn off business slowly. While doing research to find market segmentation is very important for business to proceed smoothly. When a market segment is already successfully discovered, the process product marketing will become easier and smoother. Of course this will have an effect to the product sales process. Proper market segmentation will make products sell faster.

How to Determine Market Segmentation Strategies

What Is Market Segmentation?

Understanding of market segmentation (market segmentation) exists It is the division of consumer or buyer groups in a business that has needs, characteristics, different behavioral fibers within a particular market that will then become one homogeneous market later and become a target market with its own strategy. Market segmentation is one of the strategies in the business world by grouping owned products according to customer commonalities, similarities, interests as well as needs. Market segmentation is a company’s marketing strategy to become familiar with the interests and needs of consumers in a market that creates new products that match the interests and needs of consumers. In other words, markets that had once numbered only one and had wide coverage turned into several homogeneous markets after undergoing segmentation. The ultimate goal of this market segmentation is to make the marketing process more directed.

Purpose and Benefits of Conducting Market Segmentation (Market Segmentation)

The main purpose of market clustering is to divide a still very broad market into several homogeneous markets. More fully, the following are some of the objectives of market segmentation:

  • To make it easier in differentiating markets, where interest and consumer tastes are very diverse and will continue to grow. By grouping homogeneous consumers, a business will be easier in understanding consumer needs and interests. The end result is that a market will be easier to distinguish from other market groups.
  • Can provide better service to consumen. By conducting market segmentation, a business will be easier in providing services according to its segmentation.
  • Marketing strategies become more targeted, including on compiling mix marketing covering products, prices, distribution, and promotion. With market clustering, a business can direct its funds and efforts into a potential and more profitable market.
  • Easier in getting to know competitors by segment yang equal. That way, a business can learn and imitate a competitor’s marketing strategy so that it can grab consumers’ attention.
  • Easier in evaluating targets and bus plans.

Type of Market Segmentation

Before marketing the product on the business you’re on right, it’s good you need to know the types of market segmentation that exist today, the following types:

  • Location Segmentation

This location segmentation type may be at most enclosed indicate in Indonesia. For example, if the main target is Indonesian country, then companies usually will build companies located in Indonesia, the main goal is to get closer to consumers so that cost expenditures can all be suppressed cheaper.

  • Time Segmentation

Time segmentation this is indeed less commonly used, but usually at certain times this segmentation could be applied. For example, photography services will sell during graduation season, clothing sellers will be flooded with orders when they approach Eid al-Fitr, etc.

  • Price Segmentation

By blasphen price segmentation, you can consider more easily about the economic power of our prospective consumers definitely differently. Some can afford by buying at a high price, others can only afford to buy at a price. When it is the gage of the market widely, you could apply prices to each product starting at low, medium, and high prices in order for all circles to enter.

  • Demographic

Type factor, age, and income are the most widely used variables on demographic segmentation. Because it could be that the products sold are only suitable for men, whereas for women it is already different. There are more products that are only devoted to person adult only, so You have to do this demographic segmentation so that you don’t miss the target.

  • Psychographic

Segmentation this includes consumer behavior in response to trends and product stimulation. This segmentation data is difficult to determine into groups because it usually has considerable anomalies. The results of the analysis of the presented data are also more descriptive.

  • Socially-Cultural

Cultural segmentation pay more attention to the variables of consumer social and cultural patterns. The analysis data can be; social class, tribal, commonplace norms within the scope of the market and community lifecycle.

  • Behavioral or Perbehavior

This method is agingt segment based on customer behavior or nature, such as:
How are they visit your website (which page they visited, which link they clicked on, what time they shopped, when they last shopped, and so on).

  • What are they Know about your products (are they still learning or ready to make a purchase?)
  • How are they using your product (do they often return to recharge their supply or get more?)
  • How are they make purchasing decisions (are they impulsive or slow responses when shopping?)

For example, someĀ· A customer spends months learning a product from your store before they buy it, while some customers are “impulsive buyers” who will immediately buy when they see a product. Some people goes to your store to see the products directly, while some people always buy online. When you know how your customers behave, it’s easier to give them what they want.

Features of Strategy Effective Market Segmentation

Before you wheedleetahuiknow how to determine market segmentation, you should know the measurement-measurement effectiveness in determining market segmentation. Features of effective market segmentation should be;

  • Measured (measurable), Market segmentation can be measured to a certain degree, all data analysis research results must also be proven with measured and accurate data.
  • Reachable (accessible), Effective segmentation is to eliminate the wall between the product and the consumer. Products are clearly reachable by consumers.
  • Influencing (Substansial), The segmentation process must also affect the business, e.g. profit slicing and also have an effect on process changes.
  • Differentiable (differentiable), effective market segmentation is each element in the segmentation can be clearly distinguished.
  • Realistic (actionable), effective segmentation can also realize or realize your business plan.

How to Determine Market Segmentation Strategy

Once you memahami what market segmentation is and its types, then it’s time you know how to determine market segmentation for your business. The steps in determining market segmentation are broadly:

  • Data collection, That is, by conducting research in the form of surveys, discussions and other techniques, to obtain variables in each type of segmentation.
  • Analysis, After all data got you can process that data and analysis the results of the data collection to be tailored to the marketing strategy.
  • Drafting, Staging this is you group the results from the analysis and at this stage the results will be filtered, which product is appropriate and also which market is appropriate.

By stage above, Following are more complete stages in determining market segmentation.

a. Define Target Market

The way to determine the target is to depend on the needs of the business you are running. You should note these three things:

  • New Consumer, determine segmentation based on new business so you need to look for new consumers.
  • Focused Consumer, This is usually done to look for consumers you already have but to sustain a sustainable business.
  • Supported Consumer, These Consumers are associated with your supporting product needs.

Based on those three points, you can refer to the types of segmentation previously discussed such as: demographic, price, time, and products to be sold.

b. Know Consumer Issues and Needs

The next step is to figure out all prospective consumer needs, then adjust to the product you are selling. To be able to get the information, you can ask the prospective consumer directly or by doing the interview product test error. If you have known the consumer’s problem, you can do a classification of wants, needs and also problems consumers. This is useful for reference in creating a business strategy road map and product evaluation.

c. Know Consumer Behavior

Next you can observe and analysis consumer behavior. You can pay attention to how consumers use product, the state before and after using the product, as well as the trend patterns related to that product.

d. Process and Analysis Data

Next, you can process all consumer-related data that you have observed. At this stage you will know the opportunities the product you will sell to each segmentation you have performed. Data analysis serves to references in determining strategies in drawing up the product as well as its marketing.

e. Define Product Marketing Strategies

Each segment definitely has a different marketing strategy, let alone if its target market is different. So adjust target market according to his marketing strategy. You can implement this type of marketing strategy by referencing segmentation market. For example, refer to demographic segmentation; tools What is appropriate for female consumers?

f. Market Response Evaluation

If the market strategy is already in motion and results in sales, you need to know the responses from consumers especially regarding the imperatives of the products you have, record all input consumers provide to you and immediately.


Hopefully by reading the article above, you can understand what understanding market segmentation is, its types, its ways of appropriate strategies and conduct applications. Hope such information can be of use to you, and don’t forget to be shared on social media.

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