Market Segmentation in Saudi Arabia

Introduction

In this article, we have narrowed down two of the most popularly used types of market segmentation in Saudi Arabia.

It has been a practical approach for different industries to classify and categorize customers to narrow down specific groups and aim for the right people to send your campaigns to. This strategy also ensures more efficient spending of your company’s marketing expenses.

When trying to reach customers with a marketing campaign, proper segmentation, targeting the right market, and sending a suitable message, is essential to every marketing strategy. If your aim is too broad, your campaign might reach only a few people who then become your customers. But at the same time, your campaign will ultimately stretch out to more uninterested people than wanted.

Types

Demographic Segmentation

Saudi Arabia is one of the most consumer-oriented communities in the world. This segmentation allows your team to categorize customers in a way that helps identify the best way to promote and advertise your brand. 

Picking the right factors and variables for this segmentation is crucial for your campaign’s success because choosing unsuitable variables might cause a limited range for the campaign. Although this may be the case, if you have picked the correct ones, it will enable you to construct improved copies with better personalization, product relevance, and advertising effectiveness.

The following are the three basic variables of implementing Demographic Segmentation:

  • Gender – Under gender segmentation, the database is split into male and female. In Saudi Arabia, the male population is higher than the female population. Additionally, many challenges arise from the difference in interests in products and services for men and women. Thus, companies must consider all these factors and create different strategies for both genders. This segmentation is not about gender stereotypes but a clear, constructive, and relevant presentation of targeted marketing. When done well, this strategy can be a powerful tool.
  • Age – People of different ages have different interests. According to multiple news and research, Saudi Arabia has a strong base of domestic consumers, strengthened by a growing population of young people. But we can surmise that the majority of consumers, regardless of age, are shifting to anything online. 90% of households in Saudi own at least one mobile device and have access to the internet. Businesses should take this as an opportunity to utilize age segmentation. 
  • Nationality – Saudi Arabia is the fourth largest state in the Arab world. It has a reported population of more than 35 million. More than a third of this population are expatriates of different nationalities like Syrian, Indian, Pakistani, Filipino, Westerners, and others. This information alone shows how effective segmentation and target marketing would be if used correctly. With Nationality segmentation, you can target as high as 30% of the Saudi Arabian market to promote your products and services.

Geographic Segmentation

Geographic segmentation splits your audience depending on their location. You may aim broadly by targeting continents or countries, narrow the segmentation to regions and cities, or start with a small area like a neighborhood or a district.

This type of segmentation is one of the most popular and easiest to implement. Undoubtedly, a customer’s location influences their purchase decision, and it is easy for businesses to aggregate customer information which likely includes their addresses. 

Conclusion

Your priorities should include improving your marketing strategy and enabling a more precisely targeted campaign. If you aim to get consistently improving campaign results and wish to control your market segmentation in Saudi Arabia, then you need the proper tools and the best marketing partners. Netaq Solutions provides both! Join now and create your first campaign.

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