{"id":3429,"date":"2018-07-05T09:22:18","date_gmt":"2018-07-05T01:22:18","guid":{"rendered":"https:\/\/www.brand360.com.my\/?p=3429"},"modified":"2024-02-05T13:25:59","modified_gmt":"2024-02-05T05:25:59","slug":"market-segmentation-how-it-amplifies-your-brand","status":"publish","type":"post","link":"https:\/\/www.brand360.com.my\/chinese\/target-audience\/market-segmentation-how-it-amplifies-your-brand\/","title":{"rendered":"Market Segmentation & How It Amplifies Your Brand"},"content":{"rendered":"

Market Segmentation in Malaysia & How It Amplifies Your Brand<\/h1>\n

\"market<\/p>\n

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Definition of Market Segmentation<\/u><\/b><\/h2>\n

When we talk about the market, we\u2019re not referring to bazaars.<\/p>\n

Although, who doesn\u2019t enjoy a weekly stroll at their local Malaysian night market. \ud83c\udf03<\/p>\n

In case you\u2019re wondering, the market just refers to the total sum of people inhabiting a large area, region or country. \ud83c\udf0e<\/p>\n

Following that definition, market segmentation refers to the activity of dividing the population into groups that share similar traits and characteristics. \ud83d\udc68\u200d\ud83d\udc68\u200d\ud83d\udc67\u200d\ud83d\udc66<\/p>\n

People have different needs depending on their lifestyle, gender, personality and other differentiating traits.<\/p>\n

Companies segment the market so that they can develop a specific strategy that caters to the segment\u2019s needs. \ud83c\udfaf<\/p>\n

So that brands can position themselves<\/a> to meet the market\u2019s needs better.<\/p>\n

In this article, we\u2019ll focus about market segmentation in Malaysia. Stay tuned! \ud83c\uddf2\ud83c\uddfe<\/p>\n

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\"CTA\"<\/a><\/p>\n

Market Segmentation in Malay<\/u><\/b><\/h2>\n

The term Marketing Segementation can be directly translated as “Segmentasi Pasaran.” Segment in Malay is known as “bahagian”.<\/p>\n

Here are some comparative sentences in English and Malay to illustrate the concept of market segmentation:<\/p>\n

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  1. English: “Market segmentation allows companies to focus on specific consumer needs.” Malay: “Segmentasi pasaran membolehkan syarikat untuk memberi tumpuan kepada keperluan pengguna tertentu.”<\/li>\n
  2. English: “By segmenting the market, businesses can more effectively allocate their resources.” Malay: “Dengan mengasingkan pasaran, perniagaan boleh mengagihkan sumber mereka dengan lebih berkesan.”<\/li>\n<\/ol>\n

    Importance of Market Segmentation in Malaysia<\/u><\/b><\/h2>\n

    \"Market<\/p>\n

    Now that you know a bit more about market segmentation, let\u2019s explore deeper into how does market segmentation in Malaysia help your business. \ud83c\udfe2<\/p>\n

    1. To better serve the needs of the market in Malaysia<\/b><\/h3>\n

    You know, life is funny.<\/p>\n

    When you think of yourself more, you actually get less. The saying is true: you get what you give. \ud83c\udf81<\/p>\n

    This is true even in business. When you are able to serve the market better, you will stand a chance to get more. Why?<\/p>\n

    It\u2019s because you are catering to people\u2019s wants, needs, desires, problems and pain points. \ud83e\udd1d<\/p>\n

    So, when you create a product that resolves people\u2019s problems, they will remember you for that and may pay more attention to you.<\/p>\n

    Think of doing market segmentation in Malaysia like a laser gun. It gives you laser-focus to hone in and address your audience\u2019s unique needs<\/a>. \ud83c\udfaf<\/p>\n

    What does that mean? Well, one group might need a product benefit that other groups do not.<\/p>\n

    So, after you\u2019ve identified which particular group of audience you want to target, you can do a market segmentation in Malaysia to devise a marketing strategy that caters to that exact group. \ud83d\udc68\u200d\ud83d\udc68\u200d\ud83d\udc67\u200d\ud83d\udc66<\/p>\n

    Hence, better serving the needs of your customers and this could lead to potential repeated purchases of your products because you resolve their pain points.<\/p>\n

    Like we said, doing market segmentation in Malaysia gives a laser gun focus.<\/p>\n

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    2. Staying relevant across a customer\u2019s life cycle<\/b><\/h3>\n

    This second benefit of doing market segmentation in Malaysia is very crucial for the long run success of your business. \ud83c\udfe2<\/p>\n

    Why do we say that? \ud83e\udd37\u200d\u2642\ufe0f<\/p>\n

    It\u2019s because when you truly understand the life cycle of your customer, then you can tailor your products to fit a specific need in your customer\u2019s lifetime<\/a>, or across his\/her life events.<\/p>\n

    This means your brand will be relevant across their lifetime, from childhood to adulthood. How crazy is that?! They could be your repeated purchaser for life! \ud83d\udcb0<\/p>\n

    Many brands produce different types of cars that fit into different age groups and life cycles.<\/p>\n

    Take Perodua for example, it designed small-sized cars for first-time car owners. \ud83d\ude97<\/p>\n

    On the other hand, Axia cars are a sedan specially made for young families, and the Alza which caters to older and larger families. \ud83d\udc68\u200d\ud83d\udc68\u200d\ud83d\udc67\u200d\ud83d\udc66<\/p>\n

    By making cars that answer customer\u2019s needs across their different life stages, Perodua has fortified their brand loyalty and took their market segmentation in Malaysia to the next-level!<\/p>\n

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    3. Increase brand value by gaining market share<\/b><\/h3>\n

    You\u2019d also be delighted to know that doing proper market segmentation in Malaysia can also help to increase sales. \ud83d\udcca<\/p>\n

    Larger sales also increase market shares which then increases your brand equity.<\/p>\n

    Yes, it\u2019s true. Market segmentation in Malaysia isn\u2019t the only way to increase market shares but it\u2019s hard to argue when brands like Perodua have profited largely from doing market segmentation.<\/p>\n

    Don\u2019t believe us? Check out this article<\/a> – Perodua boasted a strong 35% share in the Malaysian market which gives it a strong competitive advantage. \ud83d\udcc8<\/p>\n

    The many Perodua Myvis you see zipping across the road today is a testament to Perodua\u2019s hard work and excellent market segmentation in Malaysia. \ud83c\uddf2\ud83c\uddfe<\/p>\n

    Read: The Power of Brand Value<\/a><\/strong><\/p>\n

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    4. Solidify a strong brand presence<\/b><\/h3>\n

    When your brand continues to gain market share and brand recognition<\/a>, you\u2019ll become a force to be reckoned with. \ud83d\udcaa<\/p>\n

    You could become the iPhone of the mobile phone industry. The Coca-Cola of the F&B industry. The GrabCar of the taxi industry.<\/p>\n

    These brands are powerful disruptors in the market, they can easily monopolise the market because of their power and dominance.<\/p>\n

    Your competitors will see you as a formidable foe and your brand will also become more well known amongst your target audience. \ud83d\udc68\u200d\ud83d\udc68\u200d\ud83d\udc67\u200d\ud83d\udc66<\/p>\n

    Do you remember that back in the 1990\u2019s Perodua was known as the butt of the joke because of its tiny Kancil cars? \ud83d\ude97<\/p>\n

    But since then, through strategic innovation, Perodua has manufactured better-performing cars like Axia and Bezza which are sought after in the Malaysian market today.<\/p>\n

    Today, Perodua still remains as the pride of the nation.<\/p>\n

    Look who has the last laugh now. It\u2019s certainly not Perodua\u2019s competitors, but Perodua itself.<\/p>\n

    That\u2019s why market segmentation in Malaysia is not only important, but essential. \ud83d\ude42<\/p>\n

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    5.Nurtures and encourages innovation<\/b><\/h3>\n

    Rather than coming up with new products on whims and guesses, better products can be created based on the existing gap or need in the market.<\/p>\n

    By doing market segmentation in Malaysia, you can identify which part of a customer\u2019s life can be developed or improved and spot opportunities<\/a> to deliver a relevant product.<\/p>\n

    Just take a look at the big Swedish music-streaming brand, Spotify. The brand was able to detect a whole segment of music-listeners that enjoy personalised playlists. \ud83c\udfb6<\/p>\n

    Given that their target audience are mainly millennials and younger people, Spotify brilliantly integrated their brand with social media.<\/p>\n

    Through the integration of their app on Facebook and other social media platforms, their listeners can now sign up and listen to music for free! \ud83e\udd29<\/p>\n

    This improves their brand awarenes<\/a>s and at the same time is beneficial to their company because they innovated on how they can better serve their users – that is through social media.<\/p>\n

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    Read: Differentiated Marketing Examples: Definition, Overview, Advantages and Strategy<\/a><\/strong><\/p>\n

    5 Types of Market Segmentation in Malaysia<\/u><\/b><\/h2>\n

    \"Market<\/p>\n

    There\u2019s more than one way to do market segmentation in Malaysia. \ud83c\uddf2\ud83c\uddfe<\/p>\n

    But this would depend on how you want to position your brand and what it aims to do.<\/p>\n

    So, let\u2019s dive in and explore 5 types of market segmentation to help you improve your business strategy<\/a> for the long haul. \ud83c\udfc3\u200d\u2642\ufe0f<\/p>\n

    1. Demographic Segmentation<\/b><\/h3>\n

    The first type of market segmentation is demographic segmentation.<\/p>\n

    As a business owner, you might have also come across this type of market segmentation in Malaysia before.<\/p>\n

    It is considered the simplest form of segmentation and works for many brands in various industries like F&B, FMCG and technology.<\/p>\n

    Just in case you\u2019re curious, this method divides the population based on these factors:<\/p>\n

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    • Age<\/li>\n
    • Race<\/li>\n
    • Nationality<\/li>\n
    • Income<\/li>\n
    • Gender<\/li>\n
    • Life stages (high school, university, newly weds, retired, etc.)<\/li>\n<\/ul>\n

      To give you a practical example, a popular brand that uses this sort of segmentation is Garnier.<\/p>\n

      While the skincare brand is mainly focused on targeting women, we see a slight difference in their line of Garnier men\u2019s products.<\/p>\n

      Their men\u2019s products use a different tone of voice, colour scheme and advertising to appeal to their male audience\u2019s masculinity. \ud83d\udcaa<\/p>\n

      As such, it\u2019s quite clear that Garnier advertising is focused on gender targeting for their male products. \ud83d\udc68<\/p>\n

      So, regardless of whether you are an SME or multinational corporation, you can consider using this segmentation method if you think it will help advance your business.<\/p>\n

      2. Behavioural Segmentation<\/b><\/h3>\n

      Another classic type of market segmentation is behavioural segmentation.<\/p>\n

      Like its name suggests, behavioural segmentation is about segmenting groups of audience based on:<\/p>\n

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      • their buying patterns;<\/li>\n
      • the benefits they are looking for in a product\/service; and<\/li>\n
      • their decision making abilities<\/li>\n<\/ul>\n

        This type of segmentation is extremely useful to target seasonal buyers during festivals like Christmas, Valentine\u2019s Day, Hari Raya and Chinese New Year. \ud83e\udde8<\/p>\n

        To discover your audience\u2019s behaviour, you\u2019ll need to understand what benefits they are looking for when considering whether or not to buy a product.<\/p>\n

        Example: If you\u2019re a shampoo company and you learned that hijab wearers<\/a> prefer certain types of shampoo, you can try to analyse why they prefer them over others.<\/p>\n

        This way, you\u2019re digging into their \u2018why\u2019. \ud83e\udd14<\/p>\n

        Why do they make certain purchasing decisions? Why do they choose other products over yours?<\/p>\n

        By using behaviour segmentation, you\u2019ll discover the answer to these questions as you analyse your audience\u2019s behaviour deeper. \ud83e\udd3f<\/p>\n

        3. Distribution Segmentation<\/b><\/h3>\n

        This approach segments your audience based on your brand\u2019s distribution channels.<\/p>\n

        An example of these distribution channels could be done online, the company\u2019s bricks-and-mortar store or even postal mail. \ud83d\udcea<\/p>\n

        Many multi-level companies use the distribution segmentation method to identify how many of their potential customers would buy from a conference or mail-ordered catalogue.<\/p>\n

        Do you remember receiving those Tesco flyers\/brochures in your mailbox in the morning? \ud83c\udf05<\/p>\n

        Tesco is a prime example of a multi-level company that uses the distribution segmentation method through mail brochures.<\/p>\n

        Other fashion brands such as Victoria Secret have also dabbled into mail-order catalogue business before the advent of the internet.<\/p>\n

        4. Geographic Segmentation<\/b><\/h3>\n

        This approach segments the market into different regions, subregions, language and culture.<\/p>\n

        Fun fact. Did you know that even in Malaysia, there are different areas that will respond differently to the same products\/services?<\/p>\n

        That\u2019s because urban and rural areas have different needs. They are also heavily influenced by the dominant culture and language used in that particular region. \ud83c\udf0e<\/p>\n

        For example, if you\u2019re marketing your products in Kelantan, it would be very wise to follow the norms and rules there which could include printing your advertisements, billboards and signboards in Jawi language.<\/p>\n

        Here\u2019s a great example to show you. \ud83d\udc4d<\/p>\n

        This billboard in Kota Bharu, read as \u2018Melangkah Jauh\u2019 or Leaping Far is a good example of such billboards you\u2019ll see in rural states.<\/p>\n

        Photo Credit: abunuha.wordpress.com<\/a><\/p><\/div>\n

        On the other hand, if your business is from Sabah or Sarawak, you would have to take a different approach from how businesses market themselves in Kelantan.<\/p>\n

        Maybank was smart when executing their marketing strategy. They focused on geographic segmentation and produced this heartwarming commercial in 2007 in Iban language that has Malay subtitles.<\/p>\n