I have discussed and shared on several occasions the importance of target-marketing and its impact on a successful marketing strategy. Market segmentation can help you achieve even stronger results. What is market segmentation? Well, the more you understand who your target market is, the more successful your marketing strategy will be. To do this, sometimes you will need to divide or segment your target-market; this is called market segmentation.
Essentially, market segmentation is grouping together similar characteristics or attributes of your clients. Understanding these attributes allows you to identify patterns of behaviour, attitudes and preferences, and therefore, devise targeted products and services based on these characteristics.
If you do this right, you can more effectively market and communicate to your prospective clients using marketing channels that they respond to; in the end, increasing sales.
Market Segmentation – Popular Age Segmentation Strategies
A popular market segmentation strategy is by age-cohort or generation; we commonly know them as:
1. Silent Generation – Born before 1946
2. Baby Boomers – “Me Generation”; born between 1946-64
3. Gen X – “Baby Busters”; born between 1965-1980
4. Gen Y – “Millennials”; born between 1981-2000
Each of these market segments responds different to marketing messages depending on several factors.
If your business is selling a product or service to the “Millenials”, understanding their “YOLA” mantra is key. Marketing Magazine explains how to do this best in their April 22,2 013 issue: “Understanding the YOLO Generation”; marketing to the Millenial market segment.
For a more visual understanding of the Millenial market segement, here’s a successful TV ad that is targeted to the Millenials.
Corona – “Live Mas Fina” – Market Segmentation – Marketing to the Millenials