“Segmentation” is an essential process in marketing activities, which involves dividing the market into segments and creating strategies that group each customer.
Clarifying the target audience for your company’s products and services is an important measure to differentiate yourself from other companies, but many companies may be faced with specific methods for doing so and setting up related STP analysis. In this article, we will explain in detail the meaning and methods of segmentation that you should know, using examples for B to B (business-to-business transactions).
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What is segmentation in BtoB? STP analysis and methods explained with examples
Importance of segmentation
Segmentation
, when translated into Japanese, means “dividing” or “dividing”. This is the process of segmenting information based on certain conditions and formulating optimal measures for each divided group.
In order to find the targets to whom you want to sell your products and services and develop an effective approach, it is important to create a strategy based on marketing segmentation. It will be necessary to divide the market and find areas where your company can have an advantage in competition with other companies.
If you can deliver your company’s appropriate message to your target customers through advertising, etc., you can aim for the maximum effect with the minimum cost. Analyzing accurate information through segmentation is important in order to grasp the psychology of increasingly diverse customers.
Relevance to STP analysis
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STP strategy
(analysis)” is necessary when organizing the market and understanding needs. STP analysis, which determines your own customers and differentiates you from other companies, is a framework that consists of three components: segmentation, targeting, and positioning.
Narrow down your targets within segmented groups, confirm and design your advantageous position. The key is to always think from the customer’s perspective to see if the position is aligned with the needs. If you understand your company’s strengths and weaknesses through analysis, you can use it to build an optimal business model, and you can expect your company to grow.
Reference source:
What is segmentation in BtoB? STP analysis and methods explained with examples
How to set up segmentation in B to B
B to B is generally said to be a more complex process than B to C because it is divided into details for each company. Let’s take a look at specific segmentation methods.
- Industry/industry
Among various industries and industries, what kind of companies need your products and services? Make decisions from the customer’s perspective, such as whether your company can fill the needs they are looking for.
- Person in charge and payer
In B to B, where the person in charge of a product and the person making the payment are often different people, it is necessary to approach purchasing in a way that leaves a good impression on each person. Those in charge of product selection need to be creative in providing information such as business improvements that can be expected by purchasing a company’s products or services, while payment providers are provided with information that summarizes the benefits in an easy-to-understand manner.
Reference source:
What is segmentation in BtoB? STP analysis and methods explained with examples
summary
In recent years, where many products and services have been created to meet the diversifying needs of customers, it has become an important strategy to use segmentation to understand your company’s strengths and gain an advantageous position in competition with other companies. The key is to segment the market, clarify target groups to which you can appeal, and carry out activities aimed at maximizing profits efficiently.
Reference source:
What is segmentation in BtoB? STP analysis and methods explained with examples