Segmentation achieves clarity, efficiency & effectiveness
- Focussed targeting is more likely to improve marketing efficiency and effectiveness than unfocussed marketing.
- When you can accurately identify and address the right value proposition for a target, you improve your chances of winning their business.
- When you improve the relevance of the message, you will increase the proportion of positive responses.
- When success measurement reflects responses from a narrow target segment, you increase the validity of reporting.
- When you improve the accuracy of success measurement, you can increase the accuracy of planning.
- Segmentation offers improvements in corporate efficiency and effectiveness because it deliberately ignores distractions that do not fit into any segment.
Segmentation avoids wastage & ambiguity
- Avoid overspill: exclude targets that are not in the segment.
- Avoid wasting resources: time, effort, manpower, budget.
- Avoid false reporting: non-reactions from targets outside the segment confuse the accurate interpretation of success measurement.
- Avoid weak planning: this is the inevitable result of unfocussed targeting and ambiguous success measurement.