Market Segmentation & Targeting
Over the past few months we have used the terms market segment and targeting in these blogs, so this month we are going to delve into what exactly those terms mean.
Market Segmentation is defined as - the process of dividing your customers into distinct groups of buyers who have different needs, characteristics or behaviors, and who might require separate products or programs.
For pharmacies, segments are typically seen as: diabetics, people taking 5+ medications each month, nursing home customers, etc. However, with marketing we need to look more at how these groups of customers respond to different marketing strategies. Once we know what segment we are focusing on, we can adapt the marketing strategy to appeal to that particular group of people.
Targeting involves evaluating each market segment's attractiveness and deciding on which market segments to enter. Your pharmacy should target segments that can profitably generate the greatest customer value and sustain it over time.
For example, if you live in a town with an older population, patients typically respond well to offers of free home delivery, compliance packaging and medication synchronization programs vs younger populations might focus more on vitamins, supplements and compounding.