There are two important perspectives of Market Segments. This article discusses both and you will learn why both perspectives are needed to maximise your profit.
The first perspective is whole of market. That just means that you need to identify what segments the whole market is naturally split into. We’ll talk about why you need to know this in a moment.
Continuing our motoring theme – there are compact cars, medium and large, luxury and economy. Some vehicles also carry more goods, some inside the vehicle and some outside.
Knowing all the segments means that you can decide which markets your business can complete in, and so which you will target. A famous tractor manufacturer went to an equally famous motor vehicle manufacturer and was not impressed with the service – so he added luxury cars to his market segments. He had the equipment to manufacture these vehicles, so he did. He did not have the capability to mass-produce cars so he has never entered that market. (If you’re not sure who this is – research the history of the Lamborghini Tractor).
Now that you know the overall market segments and which ones you will target you can produce a marketing message for each one. You can produce an offer that will appeal, say it in their language, place it where they will see it and respond to it, and be prepared to serve them in appropriate ways.
Some segments – older people, for example – may still respond best to personal service, whilst others may react better to instant, 24/7 internet based shopping. The needs of each market segment will drive how you best serve them, and thus your potential profits – but only if you know what they are.
Have you targeted different market segments and made a difference to your business? Share your experience with our readers and create a back link to your business.