Maximum interaction from target audience blooms from strategic market segmentation by understanding the attributes and characteristics through market research. As such, this report seeks to identify the principles of customer segmentation and how customers are targeted in Perfumes Guyana.
WHAT IS MARKET SEGMENTATION?
(Carthy, 1993) Defines market segmentation as a 2 step process of naming broad product-markets and segmenting these in order to develop suitable methods of communicating. Breakthrough opportunities existed for Perfumes Guyana when a niche market was identified within the luxury sector. Marketing-oriented managers dissected specific target market and tailored suitable marketing mix channels to capture untampered opportunities by matching that with the corporate objectives.
PRINCIPLES OF CUSTOMER SEGMENTATION
Consumers are classified in groups accordingly which enable the marketing teams to utilize marketing budget efficiently. This can increase conversion rate by turning prospects into customers. Market segmentation is divided into four primary group namely demographic, geographic, psychographic and behavioral segmentation. Each segmentation are universally applicable conveying their own unique set of benefits, but incorporating them jointly can create maximum impact (Bell, n.d.)
Perfumes Guyana categorized its audience according to demographics based on characteristics such as age range, gender and income for B2C markets and in B2B markets focus on company size and industry. As a distributor, garnering prospective clients by industry deemed successful since direct marketing gained trust and converted beauty shops, supermarkets and salons into customers. Using multiple demographic criteria while segmenting targets seemed easy to implement in B2C market, they choose to market to a demographic consisting of working professionals and both male and female aged 25-55 years old. The potential of combining different segmentation drove sales while maximizing the value of every marketing dollar spent.
BENEFITS OF MARKET SEGMENTATION
Exhibiting a comprehensive understanding of their audience needs and wants through a two-way communication, the marketing managers are able to strategically position their products. This creates customer loyalty and raving fans who can have positive impact by making referrals, repeat purchases, and increase customer base while improving the financial performance.