Why is market segmentation important for your brand?

Why is market segmentation important for your brand?

Multinational Companies usually starts their branding and digital marketing campaign with proper market segmentation. They conduct descriptive and exploratory research and target a niche market that perfectly fits their products and services. Their advertising strategy, marketing strategy, communication strategy, and digital strategy synchronizes perfectly with their brand strategy and business philosophy. Unilever, PNG, Coca-Cola, and Wai-Wai are some of the leading company that caters a holistic view of their business branding.

The basic idea behind market segmentation is to meet the unique need of customer residing in a different location,  their behavioral pattern, demographic composition, and psychographic nature. This provides you a clearer view of your scattered target market. You can then develop a specific marketing campaign for each of the segment based on the available sales data and other variables. 

You should always know your target market, key attributes, behavior, purchasing power and characteristics of a customer. You should never develop a product or design service because you think it will work, you can just do one simple thing: go and ask your customer. A good feedback mechanism will do a world of good for your company. You can always take suggestions or establish a trial session of your product/service with your focus group. If you are confused about who can be your focus group, simply select a loyal customer of yours, few industry experts and few with no prior knowledge about your product.

When it comes to Geography based advertising campaign in Nepal- Chaudhary Group always rests at the top. You can see many advertising campaigns of MNEs; they never fail to target regional market with their tailored message. Advertising campaign of instant noddles WaiWai is a perfect example for regional or geographic segmentation. They embrace the tone, attire, and tradition of local culture which helps to flourish their message perfectly to the targeted audience. Coca-cola is also doing the same in Nepal, and there are numerous companies that are following their path.

In simple words, market segmentation allows you to target your specific group of the customer with the appropriate strategy, marketing tactics, and other needed attributes that are well appreciated and highly valued.  Applying one-strategy for every type of customer will cost you a lot of money. Instead, understanding the unique need of customer by segmenting them by their behavior, territory, nature of purchase or anything else will speed up your customer acquisition and retention process.

Most Companies in Nepal are far behind their counterparts.  In Nepal, branding and digital strategy aren’t well tailored to a specific group of audience. These generalized communications and strategic approach is dragging businessess downwards. Companies are failing to meet changing customer needs and demands. They are not able to get ROI on their marketing expenditure because of the all-in-one marketing strategy.

If you want to compete with world leaders for market share, then you have to be one. Nepalese business is a novice in this regard.  However, I believe a few steps have been taken and global products availability will also push them for needed change in their approach.