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MARKET SEGMENTATION OR THE FIRST KEY COMPONENT TO TAKE INTO CONSIDERATION WHEN DESIGNING AND DEVELOPING ONE’S BRAND

You have been working on creating and designing your own cosmetics brand for a few months. Prior to introducing your brand, you need to ensure that its characteristics will fully satisfy your customers needs and wants. In addition, in our fast paced world, there are so many brands trying to implant themselves in the market place that it leaves little room for upcoming new brands. Thus, this is critical to implement the right strategy. Yet, prior to establishing your strategy, this is paramount to define your market segmentation. Have you ever heard of this term previously? I am pretty sure you have but you may now know what does it fully consist in. Let’s discuss it in depth.

Market segmentation

Market segmentation is the first key component you need to take into consideration. As a matter of fact, this will allow you to appropriately determine and evaluate your potential customers who most likely share the same needs and wants. Market segmentation is composed of 4 parts which are as follows: demographics, geographic, psychographics and behavioral. Let’s briefly describe each of them.

Demographics

Segmenting your brand on demographics simply means that you will have to ask yourself questions such as: How old are customers I wish to attract?, What do they do in life?, How much do they approximately earn per month? Or For most of them, are they male or female? Answering such questions will help you find out about the profile that you would like to reach that will most likely adhere to your products offerings. It is often said that demographics are easier to measure than other segmentations which iw probably why this is done first.

Geographic

Once demographics have been established, time has come to look at geographic. Geographic criteria mainly rely on the location of your potential buyers. For instance, do they live close to each other? Which neiborhood do they belong to? Geographic assumes that people living in the same location share the same wants or needs. Evaluating geographic will also give you the opportunity to study the current demand of products similar to your brand.

Psychographics

Studying psychographics will allow you to determine factors such as your potential customer’s personality traits, lifestyle, opinions, values, interests, etc. Understanding those characteristics will give you the chance to figure out why people buy what they buy and how they feel when they buy. Did you know that psychographics and demographics were somehow related to each other? For instance, there could be a relationship between occupation and lifestyle, between lifestyle and income, between gender and interest or between income and interest. Those are just examples among others. If people have a certain buying power, they might consider purchasing higher quality products. If people can’t allow themselves to spend a lot of money, their lifestyle will be automatically different.

Behavioral

The behavioral category will allow you to classify your potential customers according to their knowledge of your products, their attitude towards your products, their usage and benefits. Here are some questions you may want to ask yourself in order to come up with the best selection: How much do they know about your products?, How often do they use this type of products?, Are they loyal to similar brands? Or What makes them use this type of products rather than others? Answering those questions will also enable you to determine if buyers ust this type of products all the time, quite often, on occasions or rarely.

Target segmentation is critical to the success of your business. Indeed, targeting people according to those 4 categories will allow you to determine factors such as what motivates people to buy your products, how often they will buy them, if they are used to this type of products, how they feel when they purchase this type of products and so forth. Based on your findings, target segmentation will also allow you to successfully position your brand. In fact, you will be able to find out how different or similar your products are compared to those of your direct competitors. Target segmentation requires some work, time and reflection but this is the key to the amazing journey of a new brand.

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