If you want to market and advertise effectively when you start a business, the best way to ensure that is to learn about market segmentation. The first step to market segmentation is to identify the main market for your products and services. The next step is to narrow down the market further into groups. This is called market segmentation.

The types of groups you can put your audience into varies based on whether you are a business-to-business marketer or a business-to-consumer marketer. The more you can learn about your market, the better. Some types of segmentation are actually completed by the market, such as behavioral.

For example:

Your lead visits your website and sees a sign-up form to receive an important checklist that will help them accomplish an important goal. The visitor gives their email address to you; your autoresponder sends them to the download page for the free checklist.

Now, the lead is on your email list. They have converted and have moved from cold to warm in terms of marketing. They have shown interest and given permission to you to send them information about your products and services.

Based on the fact that they downloaded your targeted checklist, you know something about them that you didn’t know before. You can now send planned autoresponder messages based on that download. You can follow up with them to find out how well the checklist worked. You can send tips about how to use the checklist. You can upsell a paid product or service that is related to the checklist.

Some of the segments outside of behavior that you can arrange are:

  • Demographics
  • Lifestyle
  • Life stage
  • Household
  • Preferences
  • Motivation
  • Industry
  • Purchases

All of these may not work for your particular business, and there may be more depending on the type of business that you have, whether you sell physical or digital products, and whether you have a product-based business or a service-based business. All these factors play into how you use market segmentation and how you perform it.

Tools to Use

No matter how big or small your business is, you can use certain tools to help you with market segmentation. Tools like:

AWeber.com

This is an autoresponder tool which like many others has the ability to do the research and crunch the numbers within its analytics. Plus it offers the ability to move people to different lists based on their behavior and where they sign up.

LeadPages.net

This is landing page software that keeps stats and helps you automate the process of list building. List building is a great way to build your audience and also a good way to segment the information you’re sending.

Google Analytics

Using this software on your blog and website will enable you to find out even before you build a list what types of people are coming to your website to get the information you’re putting out. If it’s not the type of people you’re expecting, you may need to adjust the type of content you’re publishing.

All the information that you can collect will help you with market segmentation. With that information, you can define each audience within your market that you need to send information to. That’s market segmentation.

What Is Market Segmentation?
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