Most successful marketers understand the importance of market segmentation to direct an efficient and effective marketing plan. By understanding your key segments, their attitudes, perceptions and buyer values, you can craft customized marketing messages that can be highly targeted to each segment.
There is a trend to adopt what is called “standardized market segmentation” that attempts to define segments across the entire audience. While this method can be highly effective for general consumer products, it falls short when segmenting unique or business-to-business markets such as agriculture.
From an attitude or perception standpoint, most farmers have many characteristics in common. Standardized market segmentation models apply to all consumer types can provide general descriptions of your market audience based on their demographics and attitudinal profiles. But to suggest that farmers’ key buyer values and purchasing intent is common across all product or service categories is misguided at best. Farmers don’t have the same buyer value criteria to purchase a new tractor or combine as they do when purchasing animal health products, seed corn, or when obtaining an operating loan.
Developing customized market segments for your brand and category is an investment that has long-term benefits. By understanding your audience and their key buyer values for your product or service category will ensure that your segmentation maximizes your marketing efforts.
Avant Marketing Group utilizes its DABT Model for market segmentation. The model focuses on defining the Demographic, Attitudinal, Behavioral and Transactional characteristics of customers for your brand or product category.
Demographics – This component captures the basic profiling data including age, location, size of operation, and type of production.
Attitudes – This component can be unique to your product category. For instance, a farmer might be extremely conservative regarding financial management, but willing to pay premium prices for his farm equipment.
Behavior – This component includes purchase frequency as well as informational and media habits.
Transactional – The final component captures the actual purchase behavior. For example, a farmer may feel comfortable purchasing animal health products from an online supplier, but keeps his seed purchases local based on his relationship with the dealer.
The combination of all four components of the DABT Model ensures that you have a comprehensive identification of your market segments that can be prioritized and targeted in your marketing plan.
For more information concerning market segmentation, contact Mark Vogel: [email protected].