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 :-

  1. 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.
  2. 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.
  3. 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.
  4. Look for the group of people within society willing to pay you the maximum amount of money for your product or service.
  5. 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

http://www.businessmansencyclopaedia.com/

When I start a Business Consultation session I introduce my clients (or refresh their minds) to Category Marketing. Unfortunately most small business and home business do not stop to take time up front to work on Business Planning and laying a solid foundation on which to base their businesses. Failure to do this invariably leads to problems and complications further on down the road.  So what is this category marketing about ?

You as the business owner should take time to sit down and plan out which category of the market your product or service fits into. What is meant by this ? consider the manufacturer’s of cars – when they are planning to produce a new car they determine the category of car which will be produced at the design stage. That is to say, the car could be a Mini Car, a Sports Utility Vehicle, a Multu Purpose Vehicle, a Sports Car, a Soft Top convertible and so the list can goes on. A car is not just a car – the master category of car (your product or service) can and must be split up to provide a solid foundation from which to launch your business.

To define the category for your business, take a blank piece of paper, consider the example of the cars and try to come up with at least five different categories in which your product or service can be placed. You may be a plumber but where does your area of speciality lie ? bathroom, kitchens, central heating ? Let’s take the example of a motor mechanic -when building your business it may well serve you to determine where your speciality lies – do you work on brakes, fuel injection, exhausts, bodywork and the list could go on.

It is hoped that this brief post will serve as  a catalyst to get you to move toward thinking like a business stategist as you work on the foundation of your business.

For more tools and techniques related to developing your business see http://www.businessmansencyclopaedia.com/

Stephen C Campbell