If you read anything about marketing, you know the basic philosophy of all marketing is market segmentation.
What’s market segmentation? It’s the way you analyse your market to understand how different groups of potential customers “tick”. Why is it important? So that you can focus your attention on the group or groups of potential customers who are most attracted to your offerings, and find them in the places they gather, whether virtually or physically.
Let’s take an example. Say you sell luxury fashion items. Who is your market? You might say men and women who like to stay fashionable.
Okay that’s great but that’s still a large slice of the wider market – are you sure all of them would be attracted to your offering? If you segmented that market you might be able to come up with at least two segments – men who like to stay fashionable and women who stay fashionable. If you then looked at the characteristics of the first, men who like to stay fashionable, you might find that say as a group their majority age group is between 18 and 25 and they don’t spend their money on fashionable fashion but rather trendy tech. Whereas the group of women are between the ages of 17 and 38, buy fashion, and often buy for fashion their partners. So who’s your better target market?
This week’s video how-to is about how you look at your market to hone in on your real target market.
Market segmentation is so crucial to targeted marketing.
Once you know your customer in this great detail, you can craft messages that appeal to them – for the luxury fashion item retailer, once you know your market comprises of women between the ages of 17 to 38, have income or access to income of over $100,000 (say access to parents of those below 25!), buy a fashion item once a fortnight, and buy for their partners, then the messages start to be about them, not their partners or even your product.
Once you know your customer in detail, you can place your offerings in a specialist, luxury-feel website, not EBay. You can advertise in top end fashion magazines, not the weekly gossip rag.
Of course, market segmentation is all about having a focused marketing plan that uses the needs your offering satisfies to reach the target market that most have those needs, and combines that knowledge with messages and a business model that serves them. My online marketing plan creation workshop called SMART Marketing will take any small business through 7 easy steps and realise a pragmatic implementable marketing plan for your business. Go to https://teikoh.mykajabi.com/p/smart-program in order to find out more.
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