How do you use market segmentation to target your agribusiness customers?

1 Identify your market segments

When segmenting the market, the first step is to identify the different groups of customers in the market. Various criteria can be used for segmentation, such as geographic, demographic, psychographic and behavioral. To gather information about your market segments, primary or secondary data sources like surveys, interviews and industry reports can be used. Additionally, tools like SWOT analysis, PESTEL analysis or Porter's five forces analysis can be employed to assess the strengths, weaknesses, opportunities and threats of each segment.

2 Evaluate your market segments

The next step in market segmentation is to evaluate the attractiveness and feasibility of each segment. To do this, you can use criteria such as size, growth, profitability, accessibility, and compatibility. Quantitative or qualitative methods such as market share analysis, breakeven analysis, customer feedback, the BCG matrix, the Ansoff matrix, or the GE-McKinsey matrix can help you compare and prioritize your segments. It's important to consider how large a segment is in terms of customers, sales, or revenue; how fast it is growing or declining; its profitability in terms of margins or return on investment; how easy it is to reach in terms of distribution or communication channels; and how well it fits with your mission, vision, values, and capabilities.

3 Select your target segments

The final step in market segmentation is to select the segments that you want to focus on and serve. You can use an undifferentiated approach to offer the same product or service to the whole market with a mass marketing approach, or you can use a differentiated strategy to offer different products or services to different segments with a tailored marketing approach. Additionally, you can opt for a concentrated strategy that offers a specialized product or service to a niche segment with a focused marketing approach, or you can use a customized approach to offer a personalized product or service to individual customers with a one-to-one marketing approach. To choose your target segments, consider criteria such as your objectives, resources, capabilities, and competitive advantage. Furthermore, you can use tools like the value proposition canvas, the customer journey map, or the customer persona to design and deliver value to your target segments. Market segmentation is an invaluable tool for agribusinesses that want to understand and satisfy their customers better. By targeting your agribusiness customers with market segmentation, you can create more effective and efficient marketing strategies that can boost your performance and growth.

4 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?