TARGET YOUR MARKET BY BENEFIT SEGMENTATION
Try this test…ask every businessperson you meet this week to describe their target market. You won’t hear a benefit segment.
You will most likely hear the target defined in terms of age and sex. “Men 25-54” is a common example.
The use of age and sex as a predictor of future purchase habits dates back into the 60’s… when media groups commissioned A.C. Nielsen to measure viewers and/or listeners.
The ratings company created diaries for respondents to note their media habits. Each respondent also included their age and sex in the diary. Nielsen combined viewing habits with the demographics to help advertisers determine in which programs to place commercials.
Unfortunately, not much has changed in how most business owners define their target market. But there is a much better method to define a viable group of prospects.
It’s called benefit segmentation. This type of segmentation begins by defining the various benefits your business delivers. Not every prospect needs or wants every benefit. Isolate benefits and communicate only those benefits to customers who are searching for a product that offers that ONE benefit.
Use different communication strategies for each benefit segment.
Well defined target markets will save your company marketing dollars and increase top line revenue.