Market segmentation strategies: examples

and types
According to the CMI Content Marketing Research report,
90% of companies are already adapting their commercial
messages to the informational needs of their customers,
not to those of the organization itself. This customer
centric approach is only possible thanks to segmentation
strategies.

However, the impact of market segmentation strategies

goes far beyond the personalization of the commercial
message. These are capable of determining the success or
failure of an entire company in the midst of a market that
is increasingly demanding.
What are segmentation strategies?

Market segmentation strategies are the plans that a

company designs and executes to differentiate its target
market from the rest of the general market. A very
powerful tool for this is the design of the buyer persona.

With this differentiation it is possible to segment or

divide the market into different groups of consumers,
related according to common elements. By having these
segments separated and ordered, the company selects the
group that interests it the most, which becomes its "target
market" or "target audience".

Today, segmentation strategies is not something that is

done only once. On the contrary, modern companies
apply segmentation strategies constantly, some even do it
in real time, indefinitely. To achieve this, they use
technologies such as Artificial Intelligence (AI) to
segment users according to their behaviors and interests
that they show at all times.

Why are segmentation strategies

important?

Segmentation strategies are the cornerstone of the entire

company. Thanks to these, an organization can customize
its campaigns, its services and its products. By achieving
such customization according to your customers, the
chances of attracting and retaining consumers increases.

In our eBook on Customer Experience we explain in detail

how to use segmentation to improve the experience of
your customers.
In this sense, market segmentation strategies are
important because they allow companies to:

Create effective ads that actually convert viewers into

customers. With this, the ROI and the benefits of
advertising campaigns increase.
Better focus marketing strategies both offline and online.
For example, in social networks you can create hyper-
personalized campaigns according to the design of highly
specific segments.
Improve the penetration of your products by redesigning
them according to the tastes, interests and needs of your
target markets.
Increase your market shares by knowing what other
niches or consumer groups you can address with your
products.
Expand to other territories by identifying the presence of
your target markets in other geographic areas. This
allows companies to considerably reduce their levels of
uncertainty regarding the necessary investments.
What are the segmentation strategies?

Basically, there are four types of segmentation strategies:

- Undifferentiated, undifferentiated or
massive segmentation strategy.
- Differentiated segmentation strategy
- Custom segmentation strategy
- Concentrated segmentation strategy
 1) Undifferentiated, undifferentiated or
massive segmentation strategies

The undifferentiated or undifferentiated segmentation

strategy occurs when a company, despite knowing the
different segments of its market, decides not to focus on
any of them. Therefore, the organization prefers to have a
mass commercial approach.

For example, a clothing brand whose garments are aimed

at the general public.
 2) Differentiated segmentation strategies

A differentiated segmentation strategy occurs when the

company identifies and selects two or more specific
market segments. For each segment you can develop a
different product or a different marketing campaign.

For example, a clothing brand with a specific product for

athletes and another product for children. In this sense,
this segmentation is also used to create different
marketing campaigns that address each segment
separately.
 3) Custom segmentation strategies

The personalized segmentation strategy consists

precisely in creating personalized campaigns or products
according to a market segment.

This example is seen much more strongly in marketing

strategies. Today's companies seek to know in depth the
tastes, needs and interests of their customers. Based on
this, they design marketing campaigns with personalized
messages and distribution channels to reach only the
specific segments that are of commercial interest.
 4) Concentrated segmentation strategies

Concentrated segmentation strategies are when a

company identifies several segments, but decides to focus
only on one of them. These types of strategies are usually
adopted when companies do not have the necessary
resources to be able to address various potential
segments.
Examples of Innovative Segmentation
Strategies

Some examples of segmentation strategies applied in

innovative ways are:

Movistar+ segmentation strategy

Movistar+ applied a segmentation strategy for linear

television viewers with the aim of being able to broadcast
blocks of personalized advertising. For this strategy, the
company has classified Spanish households into three
different types of market segments. This segmentation
has been carried out taking into account the composition
of said households, their tastes and preferences.
Tidart segmentation strategies

Tidart is a company that designs technological solutions

for the segmentation strategies of advertisers. By using
artificial intelligence and developing custom algorithms,
advertisers can optimize their bids across all traffic
buying channels. With this, they can reach their
audiences in a personalized way and impact them again
but through channels where they had not been impacted.

AtresData segmentation strategies

AtresData is a tool that allows the execution of
segmentation strategies in television channels to define
target audiences according to consumption and behavior,
without this implying a loss of coverage by the channels.
Based on this information, the most effective programs
and slots can be determined according to each segment.

In our eBook on Discovery Analytics we explain how to

get the most value from the data on your target segment
in record time.

Market segmentation strategies are the compass for all

organizations. Thanks to these processes, companies are
able to determine who their potential customers are,
which communication channels are most effective, and
how to design high-impact campaigns. At Enzyme
Advising Group we use big data and artificial intelligence
technologies to develop business solutions tailored to
each business to improve their segmentation strategies.