One of the most important marketing decisions a company will make is figuring out which market segments to focus on. Each segment has unique needs and in most cases, certain products stand a much better chance of success when marketing strategy focuses on the needs of those unique segments vs trying to market and fulfill the needs of multiple segments.
What’s even worse is not doing the proper data analysis and going after the wrong segment. For example, a leading distributor of liquid vitamins was shocked to discover that their marketing effort to and perceived leading segment was not 65+ adults because they were easier to swallow but actually middle-aged adult business travelers who were always on the go.
Of course, a segment should be big enough to be profitable but the smaller and more unique the segment, the more precise the marketing strategy and message can be.
In this day and age, a marketing strategy that includes a marketing database can make it much easier to reach these smaller segments and individual consumers. For example, a large retail website has a marketing database with 60 million existing and potential customers and over 400 data points on each. These data points include hobbies, age, credit, marriage status, birthday, as well as # of children just to name a few. This marketing database allows them to send individualized catalogs when a consumer is most likely to buy.
Combine that with a 360-degree view of the customer and you will get even more accurate insights allowing you to reach the right audience with the right personalized message at the right time.