Glossary: segmentation

What

Market segmentation is a process where a market is divided ino potential customers/groups/segments, based on different characteristics.

The segments contain consumers who respond similarly to a marketing strategy. Therefore, the consumers in a segment have to share similar traits, interests, needs or locations.

Why

Market segmentation is very important for marketers. Because of the better understanding of a segment, marketeers can personalize their marketing campaigns.

It is also more efficient. Through segmentation, marketers can target a whole group, instead of induviduals. This saves time, money and other resources. Grouping similar consumers together allows marketers to target specific audiences in a cost effective way.

 

Segmentation can also reduce the risk of an unsuccessful marketing campaign. With the information that marketers achieve through segmentation, strategies can be formed more efficiently and there is a higher chance of succes than if it was a generic campaign that was implemented across all the segments.

Segmentations also helps marketers prioritize certain target audiences. If it shows through segmentation that some consumers would be more likely to buy a product, than marketers know where to put their attention and resources into.

How

It is not only important for companies to do market segmentation, it is also important to do it right. These four factors can affect the segmentation and are very important to check:

1. Clear identification of the segment
2. measurability of its effective size
3. accessibility through promotional efforts
4. appropriateness to the policies and resources of the company

Types

1. Demographic: very popular, mostly used to thet the right population in using their products. Takes factors such as age, gender, family size, income, occupation, religion, race and nationality into account
2. Behavioral: Divides the population on the basis of their behavior, usage and decision pattern.
3. Psychographic: This type of segmentation takes factors such as lifestyle, activities, interests and opinions into account
4. Geographic: This type of segmentation divides people on the basis of geography. People in different locations have different needs.

Sources

1. https://www.marketing91.com/4-types-market-segmentation-segment/
2. https://trackmaven.com/marketing-dictionary/market-segmentation/

Glossary: e-Marketing

What it is?

eMarketing refers to the use of the Internet and digital media capabilities to sell your products. This is oriented to online communications, using a direct dialogue with users in order to find potential customers.

eMarketing vs Digital Marketing

Unlike Internet Marketing or Digital Marketing, eMarketing includes digital customer data management and customer relationship management (CRM) systems as well as Internet, email and online media.

What does it consist of?

eMarketing is the process of marketing a brand through the internet, therefore, this allows you to attract new customers, retain current customers and develop your brand identity.

To apply the eMarketing in a company, it is necessary to take into account these six channels:

• Search Marketing
• Online Public Relations
• Online associations
• Interactive ads
• Email marketing
• Social Media Marketing

 

What it is purpose?

The Internet has become a medium that can reach millions of people every year, furthermore, eMarketing implies being at the forefront to know how your customers interact. For example, researching their behaviors, characteristics, knowing what makes them loyal to a brand, etc.

Advantages versus Traditional Marketing.

The benefits that eMarketing offers versus traditional marketing are many. These are the most important:

1. Globalization

The Internet has revolutionized companies as they now have a global reach. With eMarketing, not only large multinationals can reach potential consumers around the world, but so can small businesses.

2. Greater reach

eMarketing allows the seller to reach consumers in many ways to offer different products and services. It includes:

• Information management
• Public relations
• Customer service
• Sales

3. Interactivity

Compared to traditional marketing, eMarketing facilitates conversations between companies and the consumers. While Marketing looks for the message of a brand is present to sell.

Also, companies feed on the responses of their consumers in order to create more dynamic campaigns.

4. Immediacy

eMarketing is able to create a great immediate impact in ways never before imagined. It is not the same to see an ad in a publication or a fence that can be found on a website or in a mobile application.

5. Segmentation

The Internet pushes its users to organize into very focused groups. Thus, observing marketers will easily deal with desired niche markets.

In short, we only need to know what kind of audience we are interested in, the rest is already given by the digital platforms (Google, Yahoo, social networks or specialized companies), as they contain a lot of data from their users.

6. Adaptability and measurement of results in real time

The eMarketing allows to adapt the initiatives on the march and to know the data of their impact. Additionally, the answers can be analyzed in real time.

Therefore, everything spent on the campaign can be effective. The maximum efficiency of eMarketing is that it creates new opportunities to take advantage of the strategic competitive advantages.

 

Sources: 

http://kont.pro/que-es-emarketing/2011/02/

https://murillocarbajal.wordpress.com/2013/03/19/que-es-e-marketing/

http://www.foromarketing.com/sabes-consiste-e-marketing/