Market segments are extremely important in marketing. What is a market segment, you might be wondering? A market segment describes a certain “audience” that “fits” your product or service. With just about any product or service, there’s multiple types of different people who could benefit from that product. The mistake that many marketers often make is trying to group them all together, and try to market to all of them at the same time, with the same sales copy, the same traffic targeting, etc. This is a losing strategy, and it’ll leave countless dollars on the table, making it FAR more difficult for you to be in profit with a paid traffic campaign.

Step #1: Build Your Ideal Customers…

One thing you have to do in marketing, is build your “ideal” customer. You look at all the common denominators for your customer base, and build an ideal customer from that. This is a pretty common practice nowadays. However, you shouldn’t just have one of these, you should have several to match all your different market segments. For example, let’s say you’re selling an SEO software. One customer segment would be people who want to use your software for their own SEO services.

Other people might want to use it to help their own personal blog, and still others might want to use it on several different websites in order to build a virtual real estate empire. Each of these people are a different market segments, and your message should be very different when talking to each and every one of them. If you just try to group them all together, you’ll be pushing all of them away, so build several of these “ideal” customers… one per segment, for as many segments as you can think of.

Ideal Customers

Step #2: Market To Each Segment Differently…

Once you’ve figured out what your different market segments are, then what do you do? Well, first of all, your entire marketing strategy should be completely different, as in, it’s almost as if you’re selling a different product. So, you should have a completely separate salespage dedicated to each of your different market segments, and you should be doing A/B split testing on each of these individual landing pages (testing headlines, sub-heads, pricing, and other important factors). On top of that, you should also be testing different ad copy… so banner ads, if you’re doing display advertising, or text ads for AdWords etc. People in one market segment aren’t likely to click on an ad that’s meant for someone in a different segment, so be careful of this.

Last but not least, you have traffic targeting. Each segment will likely have a whole different group of people which will respond to the ad (more often than not). So you have to look at different demographics, different websites, etc. if you’re doing display advertising. With something like Google AdWords, or MSN adCenter, you want to be playing around with all sorts of different keywords to figure out which ones work best with each segment. There’s really only one way however, to truly know what each segment responds to, and that is to actually test everything, and then take a look at the results.

Step #3: Figure Out The Most Profitable Market Segments…

When you’re driving traffic, ESPECIALLY if it’s paid traffic, you need to know which of your market segments is producing the most results, and which are producing the least results. For example, going back to the SEO software… is it people who want to use it for their own websites that are pulling in the most cash, or, is it people who want to use it to sell their own SEO services? I honestly couldn’t tell you, because in order to know, you’d have to look at the data from each market segment and figure it out, but, once you have this info, you’ll know where to put your resources… so when you’re running paid traffic to an offer, you know that it’s the proper market segment that you’re spending your money on.

Step #4: Build Your Sales Funnel Accordingly…

Last but not least, you have to keep in mind that people who buy your product, buy it for different reasons, and they may be interested in different things, such as, different upsells for example. Keeping with our SEO software example, let’s say you wanted to offer an eBook as an upsell. Well, it’s reasonable to say that the people who want to use the software for themselves will be interested in much different information than the people who want it to sell SEO services with. So, for the market segment interested in building an SEO service out of it, you could have an upsell that teaches people how to generate leads for an SEO business, whereas, for the people interested in Virtual Real Estate, you could sell an eBook on how to change a newly-acquired website to make them more profitable immediately, and get it ranking higher in the search engines ASAP. Just keep in mind, your different market segments view different things as valuable, be aware of this when you go to plan your OTO’s, bonuses, upsells, cross-sells, and everything else. The whole sales funnel should be built around each market segment.