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Market segmentation is a convenient method of dividing a market of potential customers into groups with similar wants and needs. The segments created can then lead to more targeted messaging to attract the right customers to the right products and services.
Why is Market Segmentation Important?
Market segmentation makes it easier for businesses and marketers to target and personalize messages to an audience.
Instead of taking a broad approach, which targets a large group, segmentation leads to a focused message with the potential to connect more intimately with your target audience. Targeted messaging and personalization have a greater chance to succeed than a generic campaign.
This is not to be confused with buyer persona which focuses on behavioral influences of a buyer. However, in order to determine your buyer persona, you must first understand your market segmentation and the customer profiles within.