Effective Segmentation Can Increase Profitability and Enhance Marketing Efficiency, Says Info-Tech Research Group

Based on research insights, global research and advisory firm, Info-Tech Research Group, advises that marketing campaigns should move beyond broad reach to directly engage and resonate with an organization’s most valuable customers. In its newly published blueprint, the firm reveals strategies for identifying and prioritizing high-value segments, optimizing marketing efforts, and improving resource allocation. By adopting this targeted, data-driven approach, organizations can increase profitability, reduce waste, and drive long-term success.

TORONTO, Oct. 21, 2024 /PRNewswire/ – As economic uncertainties grow and competition tightens, companies are under pressure to fine-tune their marketing strategies for maximum efficiency. Many organizations, however, still struggle with segmentation, often targeting too broadly or failing to personalize campaigns for specific customer groups. These ineffective practices result in higher marketing costs, poor ROI, and missed opportunities to engage with high-value segments. To address these issues, Info-Tech Research Group has released its latest blueprint, The Power of Segmentation, which provides a strategic framework to help marketers optimize market segmentation strategies, drive growth, and improve market positioning.

“Inadequate segmentation can waste precious resources and overlook revenue opportunities in valuable market niches,” says Joanne Morin Correia, principal research director at Info-Tech Research Group. “Failure to segment can drive market messaging to the wrong place, leading to potential losses and missed opportunities. This underscores the need for a thorough and well-understood market and customer segmentation process.”

The firm’s blueprint highlights that successful segmentation goes beyond immediate ROI and that organizations must adopt a long-term strategy that focuses on scaling and sustaining customer relationships. By continuously refining segmentation efforts based on data-driven insights, organizations can adapt to evolving market conditions and remain competitive. 

“Effective segmentation empowers businesses to precisely target specific customer needs and preferences, leading to more efficient resource use and improved customer satisfaction,” explains Correia. “Segmentation mitigates the risk of relying on gut feelings and ensures that fact-based, data-driven options are available for these strategic product marketing decisions. By embracing a structured segmentation framework, companies can achieve stakeholder consensus, enhance their market understanding, and adapt to dynamic conditions.”

Info-Tech’s recently published The Power of Segmentation blueprint outlines key segmentation categories that marketers and their organizations can leverage to refine their strategies, improve profitability, and gain competitive advantage. The blueprint emphasizes focusing marketing efforts on high-potential customer segments and tailoring offerings to meet their needs.

Key segmentation categories include:

• Total Addressable Market (TAM): Organizations can optimize product offerings to meet geographic preferences and regional demands. This approach helps expand reach while catering to distinct local market needs.
• Serviceable Available Market (SAM): Brands can tailor product and marketing strategies to specific demographic factors, such as age, income, or lifestyle. By narrowing the focus to well-defined audience groups, brands can increase relevance and engagement.
• Serviceable Obtainable Market (SOM): Behavioral segmentation focuses on loyal, frequent buyers or customers who engage with the brand during key moments. Brands can personalize offerings to strengthen loyalty and deepen customer relationships.
• Penetrated Market: This method focuses on targeting audiences whose lifestyles, interests, and values align with the brand’s offerings, which can help foster stronger connections and drive deeper engagement.

By leveraging insights from Info-Tech’s blueprint, organizations can address critical growth inhibitors such as competitor limitations, sales coverage gaps, and brand awareness challenges. This resource enables companies to make well-informed, data-driven decisions that improve resource efficiency, enhance profitability, and drive sustained growth.

For exclusive and timely commentary from marketing expert Joanne Morin Correia and access to the complete The Power of Segmentation blueprint, please contact [email protected].

About Info-Tech Research Group

Info-Tech Research Group is one of the world’s leading research and advisory firms, proudly serving over 30,000 IT and HR professionals. The company produces unbiased, highly relevant research and provides advisory services to help leaders make strategic, timely, and well-informed decisions. For nearly 30 years, Info-Tech has partnered closely with teams to provide them with everything they need, from actionable tools to analyst guidance, ensuring they deliver measurable results for their organizations.

To learn more about Info-Tech’s divisions, visit McLean & Company for HR research and advisory services and SoftwareReviews for software buying insights.

Media professionals can register for unrestricted access to research across IT, HR, and software and hundreds of industry analysts through the firm’s Media Insiders program. To gain access, contact [email protected].

For information about Info-Tech Research Group or to access the latest research, visit infotech.com and connect via LinkedIn and X.

SOURCE Info-Tech Research Group

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