The term market segmentation refers to a process of defining small segments in a large market based on similar demands and needs.
There are several key strategies teams use for effective market segmentation, including tactics that use the following characteristics as the foundation:
- Geographical location;
- Behavioral similarities;
The key goal of market segmentation is to define specific groups of consumers based on the characteristics they share.
Defining these segments allows sales teams to make their sales reps even more productive.
Knowing the needs, objectives, interests, behavioral patterns, and other characteristics of every consumer group allows sales reps to find the most effective ways of interacting with prospects and encourage them to make a purchase.