The Importance of Segmentation
For B2B brands to thrive and grow, they need to carefully segment the market by understanding the different needs, attitudes and behaviours of customers. B2B customers don’t buy because brands tell them to. They buy once a business need has been identified and potential solutions explored. They’re driven by their own internal agenda and not a brand’s prerogative to sell.
As Peter Drucker once pointed out, the aim of marketing is to know and understand the customer so well that the product or service sells itself. But how do you begin to understand the market to this extent? You need to robustly research and then segment the market utilising a web of understanding into differing needs, decision making behaviours, attitudes and firmographics.
Once you understand what unites groups of people and businesses, you can divide the market into groups, which are definable, accessible and actionable. A successful segmentation means that marketing teams can tailor their messaging, content and optimise tactical plans. Product teams will be better able to develop solutions that meet the specific needs of key target segments and commercial conversations can be based on a deeper knowledge of their market for more informed funding decisions.
While the variables will vary, the objective is always the same – to identify, profile and delineate sub-groups within a broader population. Collaboration from the market research stage onwards will ensure a model which will work best for the business and provides the basis for focusing available resources on target groups that offer the most potential to drive return on investment.