If you are starting a business or already have it, you must learn to segment your market. Obviously, in order to make a segmentation, you must first know what a market is and why it is important to identify it for the health of your business.
Every business or company must know who are the type of people who approach their establishment or who are interested in the type of service/product they offer as a company. For this, it is necessary to know the market in which you are working. So it is important that you read the following paragraphs in detail in order to have all the necessary details.
How to segment your market?
First of all, let’s define what a market is; the Market is understood as the tangible or intangible sector where offers and certain services or products are made between natural or legal individuals. So depending on the activity of your company there will be a market for it in most cases.
In this market, there is a certain class of clients. Based on this we can establish that for example: in the heavy machinery market, the same companies are not found as in the food market. In both contexts, so many bidders (businesses); how potential customers (and buyers) are totally different.
Why is it important to segment your market? Because as you may have noticed, not everyone will be interested in your product. For example, if your business is to sell beauty products. Your main market is women.
Knowing this is extremely essential. Why? Because based on this you can have the axis to be able to build your marketing and sales strategy; including even your advertising.
Really know what you sell
That’s right, first you must be clear about what you sell in order to know later who you will sell it to. Taking the example of beauty products. It is not the same to sell imported high-cost and renowned beauty products as it is to sell inexpensive wholesale products whose brand is not important.
Depending on your product (and other important factors), a certain class of people will approach your business and others, on the contrary, will move away.
Know your client
Once you are clear who you are; You will know who you may be interested in as a business, and now if you can start segmenting your market. In order to do it, what you have to do is analyze the customers that make up your market.
How is this analysis done? Basically you can do it by answering a few important questions. Some of those questions are:
Sex of my client: remember depending on the business it may be only women, men, or both.
Age: age is extremely important, since depending on a person’s age range, tastes vary, following the example of beauty; A woman in her 40s may be more interested in buying an anti-wrinkle cream than a woman in her 22s.
Likes: What are your customer’s likes? Depending on their tastes, it may not even enter your business. Or on the contrary, it may be completely loyal.
Purchasing power: perhaps one of the most important factors; If there is no purchasing power, there is no transaction and therefore the market is very difficult and complex.
Needs: once you have some information about your client, you can ask yourself better what you need. And based on that, build offers. The result? You will increase the possibilities of purchases.
Once you have the profile of your client. Practically your market is segmented since only the people who have that profile are the ones who will be interested in your business. The other few that actually come in are very unlikely to buy.
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