Market Segmentation is a strategy of which involves dividing a large market into subsets of consumers (Chaffey and Ellis, 2012).
Below is a list of the segmentation approaches Splash of Digital will use and the advantages and disadvantages of each approach;
Choice & Justification
Geolocation, Behavioural and Situational segmentation has been chosen to create personalized micro-segments.
Geolocation: Essential as Pop Boutique operates in the UK and Sweden.
Behaviour: Identifies consumers who may use the service.
Situational: Targets what is going on at the time of the service offering.
Issues & Risks of Choice
By only combining the above approaches there is a risk of neglecting consumers outside the micro-segmentation.
Issues & Risks of Neglected Approaches
By discarding Psychographic segmentation, it leads to a weak understanding of consumer’s personalities, therefore provides less relevant messages.
The chosen segmentation approaches in our previous blog post help us identify the below target audiences for our 24/7 offering:
People who search vintage clothing using a mobile device in the UK and Sweden between 5pm -4am
|+ Focuses marketing on relevant consumers.
-Limited engagement opportunities.
People who are buying clothes through the online store being delivered to the UK or Sweden in January Sales.
|-Limited interaction opportunities.
-The purchaser may not be the customer.
People using social media who ‘like’ ‘follow’ and ‘check in’ to a Pop Boutique Store.
|+ Shows interest/engagement.
+ Low Cost.
+ Builds brand loyalty.
|-Possibly irrelevant – consumer need not established.|
Justification of Choices
Priority 1 – Target audience 1
- Easily targetable.
- Search popularity increases year on year.
- Raises brand awareness.
- Homogenous market.
Priority 2 – Target audience 2
- Easily targetable.
- Big opportunity to engage consumers.
- Builds brand loyalty.
- High potential outreach.
– Limited opportunity to build brand loyalty.
– Highly competitive.
– Missing potential consumers.
– Low involvement purchase.
Peter Charles Robert: 12095735