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Market Segmentation – An Effective Technique to Ensure Buyer Division & Sale Conversion

  • By admin
  • April 3, 2017
  • 63 Views

Market Division – In Case of Products:

Ever heard the story where the same quality of beer was being sold at two different prices, under two different brand names? One at $30 and the other at $10? Although the quality of beer bottled and packaged were the same, however, the markets and the customers were completely different.

This is nothing but market division: Dividing the product into different categories to cater to different customer base. Although this division may hold true in case of a bottle of beer and a packet of fries, such definitions tend to change a little when describing intangible goods like services.

Market Division – Considering Services

When it comes to B2B marketing, dividing the market is done for a similar purpose to that when purchasing tangible goods but unlike tangible goods where a customer chooses the kind of product he deems fit to buy, here b2b market segmentation ensures that you as a B2B firm know exactly what it is that you would like to pitch to the customer (buying firm).

Why Segmentation?

Every B2B firm has its own set of problems, and every individual buyer is convinced that his problems are unique. As a B2B firm, you have to give vent to realistic strategies, one that involves convincing the buyer that the solutions you have on offer are custom tailor-made to solve his particular problem.

This becomes a lot easier when one applies b2b market segmentation technique.

The advantages involved:

  • Thanks to Big Data and analytics, you can now target niche segments of the market.
  • You can identify and thus avoid the shallow customer base.
  • Big Data provides instant feedback and a two-way communication which can help you plug holes in your market segments.
  • NLP and sentiment analysis to derive a feedback of the choices, preferences and customer review.

Conclusion:

Sentiment analysis and NLP allows one to gauge the behavior of one’s customers. Do you often find that the people who like your posts or read your articles to the very end are the ones most often interested in purchasing from you? Do you find that your customers belong to a specific age group or a specific industry?

Wouldn’t you have a better chance of conversion if you directly reached out to them with the solutions you have for the problems they face?

For more information, get in touch with Market Quotient today.