Do you know who’s your target audience? Or is that everyone or a specific group, male, female, adult, teens or any other demographics?
If your answer is yes, then you are not making an impact. Before understanding what’s wrong here, let’s examine what exactly “Consumer Segmentation” or “Target Audience” is? For that, we’ll look into Iceberg Model of Consumer Segmentation
Segmentation is the process of defining or subdividing a large homogeneous market into clearly identifiable segments. These will have similar needs, wants, and demand characteristics. There are four types: demographic, geographic, behavioural, psychographic, and motivational.
Demographic segmentation uses age, gender, socioeconomic status, location, rural vs urban, most basic segmentation type, helps locate targets and is helpful in the marketing process but not a good option for brand-building because it’s just the tip of the iceberg.
Behavioural segmentation is much better because it focuses on what people are doing. In this type of segmentation, you are looking at user status and how loyal they are, and how often they buy, for example, whether they buy the brand at all or occasions of use.
Psychographic segmentation is the third type of segmentation and is a step forward that looks into personalities, lifestyles, and attitudes, which impacts the behaviour. It’s much more profound than behavioural segmentation and is the first step towards understanding why people do what they do. Now finally, my favourite motivational segmentation.
It’s a bit complex method, but the one method used by most of the big brands you know, and you love. We can add so many brands to this list like Apple, Coca-cola, Red Bull, BMW, GoPro. Apple’s focus on innovation and creative individuals BMWs focus on performance and enjoyment, the ultimate driving machine. Motivational & Needs segmentation uncovers why people do what they do, what drives them, reasons.
This is a brief introduction of segmentation now to help you understand this let’s look at this image.
Did you get it? If you’ve segmented your consumers on demographics, then you are just at the tip of the iceberg, and there are so many things left for you to cover. In order to make a significant impact, you have to dig deeper and connect to your consumers on an emotional level. Using all four segmentation type will help you create a profound consumer segmentation and differentiate your business from others. Define your point of difference in the few steps below.
Point of Differentiation
There can be many differentiating points like you can offer low price, you can provide better quality, so on and so forth, these differentiating factors can be beaten easily, if you are offering low price someone can offer a price much lower than you, same goes for quality your competitor has the same access as you have. So, what you can offer is experience and provide values to your consumers.
Few extra points from the book “BIGGER THAN THIS” by Fabian Geyrhalter.
- Story:- Stories can change perspective more then any data analysis could and they can transform your business into a meaningful brand.
- Beliefs:- When your values are bigger than product. Shared values will always have a bigger impact on your tribe than your product.
- Heritage:- Connect with your heritage and let it speak. It will create conversations that will have your brand as the centerpiece.