Frost Miller Group

07

Aug

2009

Market Segmentation Increases Revenue
Labels: Tradeshow, Strategy
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Segmentation is a critical part of marketing strategy, particularly during down economies when buyers need to make difficult decisions about what to buy and what to do without. Promoting benefits of your products or services that are specific to several smaller  target audiences rather than promoting the same general benefits to all increases the likelihood of purchase.

Think of the tradeshow exhibitor who has to cut 25% of the shows in which she is participating. What will motivate her more - exhibiting at a show with 20,000 attendees in a very large, diverse industry or 2,500 buyers of her specific product? Or the construction services buyer who needs to chose between a large construction company or one who is significant in size and has also built a dozen projects very much like his own. By understanding the demographic profile of your audience, you can target them with different messages that are specific to their particular needs.  

Segmentation can take many forms, from simply identifying in promotional pieces the vast array of products and services that you sell, to developing alternate messages for key target groups, to true customization where prospects are recognized by name in the messages delivered to them.

How does it work? Let's say you manage a tradeshow that represents an industry that has several diverse segments. Rather than developing promotional materials that are sent to all prospective exhibitors or attendees, create a single overarching theme with several different executions (direct mail, email, ads, press releases, etc.) that speak to the needs of each segment. Develop a general prospectus and then a series of target-specific mini prospectuses. Send out five versions of an email about conference sessions instead of one. The key is to divide your database into different segments based on the unique needs of the prospect and send them information that is specific to their needs.

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written by Kay Plantes, October 23, 2009
Segmentation is the art of marketing well. Great idea to apply it to trade shows. To me the challenge in segmentation is making segmentation truly needs based, while also making the segmentation something you can identify a priori--i.e., you do not need to interview the target to know what segment they are in. In B2B a lot of companies use industry segmentation, but I have found that sometimes the best segments cut across industries.

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Kevin Miller
President
Frost Miller Group


Founder and president of Frost Miller Group, this long-suffering Washington baseball fan is a recognized marketing expert with more than 25 years experience. He works with associations, startups, mid-market firms, government agencies and Fortune 500 companies across the U.S and abroad developing strategic ideas to improve brands to compete in today’s markets. Kevin has co-authored two books on marketing communication as well as numerous articles, speaks regularly about marketing issues and trends, and can talk marketing strategy until the cows come home (an infrequent occurrence in Washington). Kevin earned a degree from James Madison University and is a member of PCMA, IAEE, SMPS and the triple-A.
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