Every company or small / home business exists for the purpose of providing their product or service to the market place. With this point in mind it is sometimes baffling not to mention amazing that a great deal of businesses do not spend time on market segmentation (or niche marketing and we will use the terms interchangeably) as a regular part of their business strategy planning sessions. Failure to focus on implementations of market segmentation essentially means that the given business may well end up selling their product or service into a section of the market place which is not as good as a fit as it otherwise could have been. To develop your Market Segmentation or Niche Marketing strategy consider the following process steps :-
- Determine which set of Market Segmentation criteria you will use within your company for a specific product or service. You can segment the population by Age, Race, Earning Capacity, Geographic Location, Skin Colour, Language Abilities, Marital Status and so the list can go on. You need to determine which set of characteristics you will use to determine you target market.
- Determine if you need to further segment any of the major categories identified above. E.G. you may identify Music Lovers as a segment of the market however, on closer inspection you may find that you need to further segment by classification of music, Jazz, Rock, R&B etc and the list can go on.
- Consider which section of the population fits with your product or service, E.G. you are selling a sports car with two seats which costs in excess of $60K. Would you spend thousands of dollars sending out leaflets to young mothers with children at school or would you go to college campuses to target postgraduate students ? Of course not but in effect this is what many small businesses do.
- Look for the group of people within society willing to pay you the maximum amount of money for your product or service.
- Stand from your company’s point of view the landscape which is called the marketplace, this will help you to determine who your ideal client is.
In summary, there are various components which make up a marketing strategy, niche marketing or market segmentation strategies play a major part in the overall marketing strategy of any organization or small business. Use the process above as a template for your niche marketing planning exercises, this will chang ethe way you approach your business in the future.
Stephen C Campbell