Harris KhanThe Complete Guide to Multisegment Marketing Strategy
A differentiated marketing strategy is one in which the company decides to provide separate offerings to each different market segment that it targets. It is also called multisegment marketing. Each segment is targeted in a particular way, as the company provides unique benefits to different segments.
What is Multisegment Marketing Strategy?
Multisegment marketing is the strategy of providing a differentiated marketing strategy to different market segments. It is also known as niche marketing. The overall strategy aims to provide a separate offering to each niche segment which the company targets. This strategy is effective because it gives an advantage to the company, as each segment is targeted in a particular way.
Multisegment marketing strategy makes it easier for a company to reach out to a specific target market segment. It is similar to companies developing a concept car not sold to the consumer. The car is developed to attract investors and to generate a buzz of interest around the company. Check out Car Insurance Quotes Online for more details. The specific segment targeted may or may not benefit from the product. However, they gain interest in the company based on the unique product.
Multisegment marketing strategy offers a brand a strategy to differentiate itself in the market. It is a better competitive strategy compared to a standard segmentation strategy, which focuses on the market and offers little concreteness to a company. The standard segmentation strategy is a passive one, where the company does not actively seek the various segments. This strategy aims to attract as many customers as possible, which provides a challenge to the company. The company faces the challenge of attracting customers from a large market.
Multisegment marketing strategy targets customers who are interested in a niche market. The targeted niche market is a specific group of customers with a shared common interest. The focused marketing strategy is to provide a different product under a unique concept and brand.
How to Conduct Multisegment Marketing Analysis
In order to conduct a competitive analysis for this strategy, one needs to take into consideration the following:
The Market Segment Under Consideration
The market segment is the core of the analysis. The market segment is the group of customers who have a specific set of characteristics. These characteristics can be anything. It is essential to remember that the market segment is driven by a motive which can be anything. It includes the customers of products, services or information. Another example of a market segment is the customers of a particular product. A customer who considers a particular product as superior to any other products is considered part of a market segment. The market segment is made up of customers who have a set of shared characteristics.
Steps to Conduct a Multisegment Analysis
In order to conduct a competitive analysis, one needs to take the following steps into account:
Research about the Customers of the Product
It is essential to conduct research about the customers of the product. Here, one needs to sharpen the focus on the customer segment size, growth, trends, and location. It is needed to understand the following aspects of customers to tailor the marketing strategy:
Growth factors – It is needed to understand the growth factors of the customer segment. Growth factors include changes in demographics, technological innovations, changes in economic conditions, and legislative changes.
It is needed to understand the growth factors of the customer segment. Growth factors include changes in demographics, technological innovations, changes in economic conditions, and legislative changes. Segment size – It is essential to understand the segment size. Understanding the segment size means to understand the number of customers who are part of the customer segment.
It is essential to understand the segment size. Understanding the segment size means to understand the number of customers who are part of the customer segment. Market locations – It is essential to understand the market locations of the customer segment. Understanding the market locations means to identify which geographic regions are dominated by the customer segment.
It is essential to understand the market locations of the customer segment. Understanding the market locations means to identify which geographic regions are dominated by the customer segment. Demographic variables – It is essential to understand demographic variables of the customer segment. Understanding the demographic variables means to identify how the customers in the market segment are related to other factors.
It is essential to understand demographic variables of the customer segment. Understanding the demographic variables means to identify how the customers in the market segment are related to other factors. Psychographic variables – It is essential to understand psychographic variables. The demographic variables include variables such as age, gender, occupation, and level of income. The psychographic variables include variables such as lifestyle, personality, values, interests, and opinions.
It is essential to understand psychographic variables. The demographic variables include variables such as age, gender, occupation, and level of income. The psychographic variables include variables such as lifestyle, personality, values, interests, and opinions. Demographics profile – It is essential to understand the demographics profile. The demographics profile includes information about customers such as the age they live in, how they feel about their role in society, and how they feel about their economic conditions.
It is essential to understand the demographics profile. The demographics profile includes information about customers such as the age they live in, how they feel about their role in society, and how they feel about their economic conditions. Geographic profile – It is essential to understand the geographic profile of the target segment. Understanding the geographic profile means to understand the most popular locations where customers are present in.
It is essential to understand the geographic profile of the target segment. Understanding the geographic profile means to understand the most popular locations where customers are present in. Psychographic profile – It is essential to understand the psychographic profile. Understanding the psychographic profile means to understand the personality traits, activities, and behaviors.
It is essential to understand the psychographic profile. Understanding the psychographic profile means to understand the personality traits, activities, and behaviors. Commercial profile – It is essential to understand the commercial profile. Understanding the commercial profile means to identify the most popular and effective business strategies.
It is essential to understand the commercial profile. Understanding the commercial profile means to identify the most popular and effective business strategies. Segment preferences profile – It is essential to understand the segment preferences. Understanding the segment preferences means to understand the firm’s assumptions about the segment, and the customers’ preferences.
Segment Needs
It is essential to understand the needs of the customer segment. Understanding the needs means to understand the customers’ intentions and efforts to satisfy a need.
Segment Attitudes
It is essential to understand the attitudes of customers in order to understand their preferences. Understanding the attitudes means to understand customer expectations, brand associations, and perceptions. One needs to understand what the customer segment expects from the company. One should be able to identify how the company needs to present itself to the customer segment.
Segment Values
It is essential to understand the values of the customer segment. Understanding the values means to identify the unique values the customer segment has.
Segment Problem Profile
It is essential to understand the profile of customer problems. Understanding the problem profile means to identify the problem-solving process in a customer segment.
Segment Service Profile
It is essential to understand the profile of expectations for each segment. Understanding the service profile means to identify the efforts the customer segment considers adequate for the problems.
Segment Decision-Making Strategies
It is essential to understand the decision-making strategies of the customer segment. Understanding the decision-making strategies means to understand the way the customer segment goes about making important decisions.
Multisegment Marketing Activities
In order to conduct a competitive analysis, one should take into consideration the multisegment marketing activities. These activities are designed in accordance with the strategy being followed.
Exploring New Market Segments for a Multisegment Strategy
Exploring new market segments means finding new ways to find groups of customers for the different market segments. Here, expansion of the market segments is needed. The market is being explored in order to find new segments as well as new ways to market to the previously known market segments. The new market segments should be small and easy to penetrate. The new segments should not create higher costs or more complicated logistics than the existing segments. Expansion of market segment should be done with care.
Priority Segment Targeting for a Multisegment Strategy
The market can be segmented in different ways. In order to decide which segment to target, the firm should understand its resources and capabilities. The firm should decide whether to focus on one segment or multiple segments simultaneously. In order to decide which segment to target, the firm should understand its resources and capabilities. The firm should decide whether to focus on one segment or multiple segments simultaneously. In order to decide which segment to target, the firm should understand the benefits and costs of targeting that segment. Customer Satisfaction in a Multisegment Strategy
Customer satisfaction is very important in multisegment strategy. The process of meeting the customers’ needs is referred to as satisfaction. The success of multisegment strategy relies on the satisfaction of the company’s customers in each segment. It is important to understand the needs of the customers and to put into practice processes to satisfy those needs. Understanding the needs of the customers is the first stage of satisfying those needs.
