Market Segmentation

Market segmentation is the process of categorizing the marketplace into distinct subsets (segments) that share similar needs. If each segment of the PURL Campaign is fairly similar in its needs and attitudes, it is likely to respond similarly to a given marketing strategy. In other words, everyone within the mix is likely to have similar feelings and ideas about a given product or service, pricing, and how they are promoted.

Typically, segmentation is conducted using demographic, geographic or behavioral data. Small segments are often termed niche markets or specialty markets. Keep in mind that the process of segmentation is distinct from targeting (choosing which segments to address) and positioning (designing an appropriate marketing mix for each segment).

The idea is to identify groups of similar customers, understand their behavior and respond with appropriate marketing strategies that satisfy the unique preferences of each chosen segment.

Improved segmentation can lead to significantly improved marketing effectiveness. This is why the ability to track and optimize a direct marketing content – such as the Campaign Control Center (included with Netfire1to1.com’s campaigns) – is an indispensable tool.  Innovative marketers willing to make a little extra effort in their campaigns stands to gain a lot more return on their investments. Success happens when you do the right things right.