What is Segmentation?
Segmentation is the process of dividing a company’s target market into groups of potential customers and consumers with similar needs and behaviours. Doing so helps the company sell to each group using distinct strategies tailored to their needs.
Segmentation helps a business identify and choose the most potentially profitable customer and groups to focus on. This depends not only on their needs, behaviour and likelihood to pay, but also on which groups the company is best suited to serve given its brand, products and differentiators.
When jewlers will segment well, they will benefit from sharper focus on their customers and consumers with, better internal alignment and more effective marketing and content plans, all of which will contribute to stronger business results.
Difference Between Customer and Consumer
|A customer is the one who makes a purchase. He may or may not be the end user.||A consumer buys jewelry for his or her own use.|
|A person who purchases may not be the final end user.||A person who purchases is the final end user.|
|Example: A father buying jewelry for his daughter or someone buying a gift.||Example: Unmarried Women buying for herself.|
|Content: Your marketing or promotional message will focus on father or gifter and their purpose to buy.||Content: Here you will focus on the user and reason for their use.|
|Content Example: Bless your kids with purity this Diwali.||Content Example: This Statement Ring will bring prosperity and honour.|
Types of Customers and Consumers