Today, having the best product or service is not enough to hope to sell it. Focusing on the wrong market segment can prevent conversion. Downstream, defining a targeted marketing strategy is essential for successful prospecting. It guarantees the effectiveness of the lead generation process. In B2B as in B2C, segmentation and targeting are the key to massive conversion. In this article, find out everything there is to know about these two ultra-strategic steps.
What is segmentation and targeting?
Defining segmentation
Segmentation is based on the division of a target market into different customer segments. Quantitative or qualitative criteria are used to gather consumers into homogeneous groups.
Each segment is made up of customers or prospects with similar characteristics:
- Socio-demographic characteristics ;
- Buying habits ;
- Issues ;
- Requirements ;
- Buying behavior.
Segmentation enables :
- Get a clear picture of consumer motivations and behaviors;
- Measure the scope of your market ;
- Identify the different types of consumers;
- Ensure consistency between marketing plan and market structure.
For successful segmentation:
- The differences between the groups must be significant enough to allow them to be identified and then acted upon;
- Segment size must be large enough to constitute a target.
Good to know: What are the three main categories of marketing segmentation?
- Based on needs: what customers want from your company;
- According to profitability: the profit that customers are able to make for you;
- By channel: which channels to focus on for a given type of customer.
Definition of targeting
Targeting is based on the selection of a market segment. Marketing efforts are concentrated on this segment. This stage comes after segmentation and before positioning. It is crucial to defining an attractive and differentiating positioning.
Targeting is used for :
- Directing marketing actions;
- Avoid investing in low-potential segments.
To determine which segment(s) to target, it's best to carry out market research. This gives you a precise idea of the type of customer you're targeting, by gathering as much data as possible. During this stage, certain points need to be taken into consideration, such as the attractiveness of the segment, competition and investment.
At the same time, it's important to create personas. They must be as representative as possible of your target. The persona sheet includes :
- All useful customer information ;
- Marketing segmentation criteria: values, personality, habits, profession, gender, age, etc.
The difference between segmentation and targeting
Often, the two concepts are used synonymously. Yet they are radically different marketing techniques.
Segmentation takes place before targeting. Stable over time, this strategic practice involves dividing consumers into homogeneous groups. It is used to define new offers, adapted to each customer typology.
Targeting is a more operational practice, associated with a specific marketing or advertising campaign. It is based on the selection of customers from a database. Marketing targeting varies according to criteria such as offer, sales pressure, previous results, etc.
Marketing segmentation can be used as a targeting criterion.
The different segmentation methods
Geographical segmentation
From one place of residence to another, consumers react differently to marketing campaigns. As the name suggests, geographic segmentation is based on the location of individuals to personalize marketing strategy.
Segmentation is possible at several scales: neighborhoods, communes, départements, regions, countries, etc.
Other criteria can be used: climate, natural environment, culture, traditions, level of urbanization, population density. This type of segmentation answers the question: where are your customers located?
Demographic segmentation
Demographic segmentation is based on the use of factual, descriptive data about consumers and their lifestyles. Among the most common criteria are gender, age, social class, level of education, family composition, marital status and so on. Here, we're more interested in finding out who the customer is.
Psychographic segmentation
This type of marketing segmentation focuses on consumer lifestyles. The criteria used are as follows:
- Personality;
- Social status;
- Activities ;
- Interests;
- Opinions;
- Attitudes;
- Values ;
- Habits.
Good to know: What characteristics must be included in a segmentation criterion?
For a good segmentation, the criteria must be :
- Relevant. They are adapted to the product. For example, age for vehicles or purchasing power for household appliances.
- Measurable. Features can be accurately measured.
- Operational. They enable segments to be reached through specific sales actions.
Behavioral segmentation
Behavioral segmentation addresses the question of how customers or prospects purchase. It is linked to purchasing modes, frequency and volumes, channels used, visiting behavior, reactions following receipt of e-mails, pages visited, and so on.
Good to know The Commission Nationale de l'Informatique et des Libertés (CNIL) systematically verifies that behavioral segmentation does not infringe on privacy.
The different types of marketing targeting
Undifferentiated or mass marketing targeting
This strategy involves targeting all market segments. Existing differences between consumers are not taken into account. Mass targeting is justified if they have the same preferences. It is suitable for offers aimed at several socio-professional categories, such as mass-market products: food, household products, detergents, etc.
| Benefits | Disadvantages |
| Control production costs. Reduced communication costs.Generate economies of scale.Reach as many consumers as possible. | Impossibility of completely satisfying most customers Potential presence of a more specialized competitor in each identified market segment Vulnerability to market changes |
Differentiated marketing targeting
Different market segments are targeted. This strategy enables us to better respond to the needs of different consumer groups, by proposing adapted products and marketing policies. This type of strategy works perfectly in a mature market.
| Benefits | Disadvantages |
| Consolidate your market position. | Increase in production and communication expenses. |
Concentrated marketing targeting
A single product is offered for a single segment. The company develops a niche strategy in segments where it believes it has a competitive advantage. This strategy is generally adopted by companies specializing in a particular field of activity.
| Benefits | Disadvantages |
| Concentrate resources and action on a small target group.Good knowledge of the segment in which the company specializes.Corporate image and legitimacy. | Confining the company to a restricted part of its potential market Potential weakening of the company Dependence on a single market segment Risky strategy if the segment suffers a crisis or a powerful new competitor enters the market. |
Why segment and target?
The aim of segmentation and targeting is to focus marketing efforts on those consumers who generate the most added value.
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A specialist in targeted file rental and data enrichment, Dataventure is based on propensity scoring. This score reflects the probability that a prospect will become a consumer of your product or service. It guarantees the profitability of your actions: lead generation, performance e-mailing, profile collection opt-in, competitions, behavioral surveys, SMS marketing.
Once you've carried out your segmentation and targeted marketing, all that's left to do is position your offer. Product type, consumer motivations, group membership, price, quality... Positioning can be based on a number of factors. The objective? Establish your place in the market with a coherent marketing strategy, and reach your customers more effectively.
