The division into groups of the company’s target audience is market segmentation. The main criteria for this are: interests, behavior, demographics, needs, priorities and other qualitative and quantitative measurements of consumers that are important for your niche.
Market segmentation allows you to develop a product and services, taking into account the needs and capabilities of certain categories of customers. A brand that segments a market is different:
- strong marketing messages – it is possible to address different groups of consumers differently, based on characteristics and better understanding their needs;
- targeted advertising on the network – it is effective, because it will be aimed at people of a specific age, with certain interests, habits, etc.;
- attracting the right leads – customers who already want to buy your product go to the advertising company;
- high response speed and minimal costs – advertising tuned to a specific market segment is more effective;
- loyal customers – consumers have a positive attitude towards a company that knows what customers need;
- profit growth – knowing the income of consumers, you can offer them the price that they are willing to pay;
- a good product – a product is developed taking into account the requirements of the market.
Depending on the methods of segmentation, the following types of segmentation are distinguished:
- Demographic. Education, income, age, nationality, profession of clients, etc. are taken into account.
- Geographic (refers to a subspecies of demographic). Groups of clients are created depending on geography.
- Firmographic. Considers organizations, considering the number of employees of the company, size and other factors.
- Behavioral. Generalizes into separate groups of consumers according to their purchasing decision-making model, according to their lifestyle.
- Psychographic. Clients are segmented by lifestyle, interests, opinions and values. The method is mainly used by large companies.
Based on the collected data, consumer segments and strategies for interacting with them are identified. If any of the segments are not included in your target audience and you do not plan to expand it, then you can exclude them and work with the rest.
Today, price monitoring is a tool not only for analyzing competitors, but also for internal marketing of the company. For example, many large brands track the prices of their own products in order to assess the retail share and competitiveness of their products.
Competitive pricing allows you to change the cost of a product or service depending on the number of similar offers on the market and demand growth, as well as timely launch effective loyalty programs, discount systems and other marketing activities.
To successfully promote a product on the Internet, a company needs to know a little more about its competitors than just the prices of their goods or services. From time to time, it is necessary to monitor their online channels for interacting with the target audience and the effectiveness of the chosen strategies.
One of the easiest ways to evaluate the influence of competitors in the online environment is to check their positions in search. If you do it manually and superficially, then it is enough to turn on the incognito mode and drive a competitive commercial query into the search bar. For a deeper and more effective analysis of the TOP 5 SERPs, you should pass through special services: Semrush, SE Ranking, Serpstat, Ahrefs.com, SimilarWeb and others. You will see the keywords that competitors are ranking for, their most popular pages on the site, and so on.
In addition to SEO, competitors can be analyzed in the following areas:
- social networks and ways of communication with the audience;
- content and channels of its sowing;
- PR activities online;
- paid promotion.
With the help of competitive analysis, you can choose the right brand positioning, make adjustments to the development strategy, or even expand the package of services provided or the product line.