Segment your marketing, not your product
Market segmentation is a powerful concept. Its basic premise is that a given market is not homogeneous, but instead is comprised of more than one smaller parts (segments) each of which contains customers with similar product needs or desires. A common example that will be familiar to most is automobiles. Does Ferrari really compete head-to-head with Kia? It is unlikely that many consumers are trying to decide between one of those two brands. The type of buyer interested in a Ferrari is more likely weighing it against a Porsche or Aston Martin than a Kia. Similarly, potential Kia buyers are not realistically in the market for a Ferrari. Those two automobile brands are servicing different market segments within the larger automobile market.
Many businesses face this kind of situation. Small businesses especially might not be in a position to offer a range of differentiated products to match the needs of all segments within their market. So how can such a business, with limited resources, maximize the segments it serves? Sometimes, it simply can’t. There are fundamental feature and performance differences between a Ferrari and a Kia that cannot be bridged with creative marketing. Kia would not be well served by wasting time and energy pursuing the luxury sports car demographic with its current model line-up. Other businesses should also avoid chasing segments for which its products clearly are not designed to attract. However, there are methods to position the same product across multiple different segments with a bit of marketing slight-of-hand.
One obvious lever is price. Sometimes that is the only differentiation point between multiple segments, with the underlying product characteristics largely the same. A business can often charge a different price for the same or similar service to different market segments. A discount for a customer that commits to a large, regular volume versus a higher price for one-off orders is one example. Warranties and higher touch customer service can target a commercial segment with the same product that appeals to a residential segment more interested in a lower price than those additional inducements. A mail order catalog could appeal to a different demographic than one who values an in-store experience, even if the widgets involved are the same. The list goes on. The method that the product is marketed, priced and delivered can allow market segmentation without the expense of product segmentation.
Are you serving every segment that you can with your product? Want to serve more? Ask MagnaVaria how.
