The purpose of market segmentation is to improve customer acquisition and retention rates thus increasing business growth and profitability. The development of target profiles allows the creation of more effective marketing messages and programs supported by a clearer picture of what constitutes value to the target market. All derivatives of market segmentation are building blocks of market planning and execution – thus providing a firm foundation from which successful marketing techniques can be employed. Following are keys to marketing to specific target profiles:
- Use Effective Marketing Messages – Marketing to a specific profile allows for development of more powerful marketing messages as well as the employment of effective marketing venues. The AIDA formula for marketing message development in conjunction with specific profile definitions will result in highly successful marketing campaigns.
- Use Focused Marketing Techniques – Market profile definition is the primary component of focused marketing. Market segmentation will support focused marketing and ensure positive results.
- Employ Inbound Marketing – Inbound marketing focuses on building associations which evolve over time into supplier-customer relationships. A definitive target market profile will allow identification of value that can be provided in relationship building.
- Develop a Marketing Plan – Assessing the target market and identifying profiles provide the building blocks for development of effective marketing plans. Knowledge becomes power when formulated into a well thought out plan.