Market segmentation is an important process in conventional marketing. Marketing is an important step in ensuring successful implementation of marketing strategies.
Market segmentation means dividing a market into different groups or categories according to certain criteria such as household income, level of income, level of education, age, gender, hobbies and more. Such data can be collected through questionnaire survey or from statistical department.
Once we have those groups ready, we can then use differentiated marketing strategies to target those groups based on their needs and wants. For example, ask your self what you can sell to the senior people? Your answers could be nutritional products, tour packages, medicines, indoor exercising machines and more.
So much about the concept of segmentation. Now, how do we do market segmentation in the Internet marketplace, or rather marketspace? The concept is basically the same, the only difference is you have a much larger marketplace, and the main concern is language and cultural differences. For example, if you wish to promote inbound tour packages, you can target adult travelers from different countries, using website that offers different major languages in the world, such as English, French, Spanish, German, Chinese and Japanese. If you cannot do it yourself, you can always outsource to companies that provide translation services. Besides, you might want to customize your website according to different cultures, particularly those relating to food and things they like to see.
Okay, hope that you have learned what is market segmentation and its application in the Internet marketplace. Hopefully you can make use of this technique to improve your profitability.
