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Market Segmentation Research
A market is made up of many types of customers, each with distinctive tastes, preferences, needs, and wants that are different.
It is thus close to impossible for a business to profitably serve all customers. There is a reason why the streets of Kampala are not littered with luxury stores of brands such as Gucci, Ferrari, Prada, or other marquee names. These brands target a certain type of affluent customer segment that simply doesn't exist yet, at least not in volumes that can profitably justify opening a local franchise. This is segmentation at its finest. Such luxury marquee names segment their markets based on consumers who have very high incomes (High Network Individuals) and the geographies where such people are concentrated.
What is Market Segmentation?
Market segmentation is all about dividing your potential market into distinctive target markets based on demographics, behavior, geography, or firmographics.
Segmenting markets can help your business identify the right group of customers to tailor products and branding to them in a way that is both profitable to you and attractive to customers.
Market segmentation is very important as it will help you minimize risk by figuring out products that are most likely to earn a share of a target market.
Understanding your target market makes it easier to figure out the best ways to market and deliver given products to the market. With minimized risks due to the clarity of the best markets to target, a business can focus all its resources on efforts that are likely to be the most profitable.
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The Essence of Segmentation
Most companies are in a position to serve some segments better than others. It is thus essential for a company to aggregate prospective customers into groups/ segments, choose the best segments, and design strategies for serving them profitably.
For a company to successfully market and sell its products, it must first decide whom it will serve. This is achieved by dividing the market into segments of customers (market segmentation) and selecting which segments it will target its products with.
The company must then decide how it will successfully serve the targeted customer; how it will differentiate and position itself in the marketplace. This is the essence of market segmentation.
Through segmentation, a company can boost its demographic reach which will in turn help the company discover products/ services they previously did not consider important.
For marketing to be successful, it is essential for you to understand the marketplace and consumer needs and wants, especially in today's business environment where consumer needs are always changing. It is thus essential to conduct market research on the target market in order to gain clear insights into their consumption habits.
Ultimately, market segmentation adds to a business’s ability to cater to the diverse needs of a considerably sized consumer market, where various sections of consumers may have diverse needs, interests, and perceptions of different products and services.
Market segmentation is vital for every business as it helps them determine the highest-value groups to target within their markets with the right product at the right time. Our market research professionals work closely with clients across Uganda and help them gather insights and data about their target markets, helping them deliver the right products/ services depending on customers’ ever-changing needs.
Why is Segmentation Important?
Provides Direction: Market segmentation is a vital tool for identifying consumer segments to target. Market segmentation thus provides a direction to your business in adopting a feasible marketing approach and developing a workable marketing strategy.
Value Creation: By using market segmentation, your business can develop a better understanding of the dynamics of smaller market segments, comprised of your target consumers, as well as that of a large consumer market as a whole. This can help you make informed decisions on delivering products/services to your consumers.
Competitive Edge: By helping businesses offer their goods/ services in accordance with the acknowledged consumer demands, your business will be able to fulfill the needs, desires, and requirements of your target consumers which in turn helps it attain a competitive edge over others.
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Know your Customer
Due to advancements in technology, today’s consumers are more informed and clearly know what they want. Technology has created a new set of customer behaviors and expectations around how, when, and where they can buy and use products, and in what form. Customers form expectations about the value and satisfaction that a given product or service should deliver and buy accordingly.
It is thus essential to satisfy the needs and desires of customers because satisfied customers buy again and also tell others about their good experiences, which in tandem attracts more customers.
On the other hand, dissatisfied customers tend to switch to competitors and also denigrate the product to others.
Are you launching a new business? Our experts make sure that you get segmentation analysis based on sound data. Our market research experts are experts in market segmentation analysis and can help you better understand your customers, their needs, desires, habits, and perceptions in detail, and how to reach them with a value offer that takes into account such wants and needs. Dont use intuition to make business decisions
Whatever Your East Market Segmentation Needs are, We Can Help. Call Today for a Consultation! Let Our Experts Give You the Information You Need. Talk to Africa’s Expert Market Researchers Today.