Business Strategy : Marketing Segmentation

Every company or small / home business exists forcourse you would not but you may well take a similar
the purpose of providing their product or service toapproach if you were representing a music
the market place. With this point in mind it isproduction company who were promoting one of the
sometimes baffling not to mention amazing that ahottest christian artists on the scene.
great deal of businesses do not spend time onWhen considering market segmentation we have to
market segmentation (or niche marketing and we willstand from the company's point of view and we look
use the terms interchangeably) as a regular part ofout from the company and view the landscape which
their business strategy planning sessions.is called the market. In essence we are looking out at
Company's often ask about how to do marketthe sea of the population all of which may be clients
segmentation and some of the many answers toof ours. Here follows a process on how to
that question will be addressed here. Failure to focuseffectively segment your market.
on implementations of market segmentationNiche marketing looks at splitting up the target
essentially means that the given business may wellmarket into group for which you can use to target
end up selling their product or service into a sectionyour product and service to. The market can be
of the market place which is not as good as a fit assegmented by race, age, earning capacity, living area,
it could or should be.marital status, disposable income, height, skin color,
The companies which command significant marketparents, single parent families, music lovers etc, etc
shares are the ones which make sure their productswhich when devised correctly will give you a firm
or services are carefully targeted to a specific nichebase for which category of product you can sell to a
in the market. Let's consider car manufacturers whoparticular Market Segment.
wish to sell a sports car with two seats and costs inIn the examples above let's consider music lovers;
excess of $60K. This should get you thinking, sostraight away we know that within this market
consider this if you were tasked with selling this typesegment or niche there can be jazz, classical, opera,
of car who would you target ? would you spendrap, r&b, latin and the list can go on. What is the
thousands of dollars sending out leaflets andpoint here ? the point is that section or niches in the
information to young mothers whose children are allmarket can be further segmented to determine very
at school ? Would you go to college campuses tovertical or narrowly defined sections of the market
speak to post graduate students about buying theirplace. When we carefully segment the market to
first car ? or how about going to visit local workingvarious degrees we end up with the situation where
men's clubs ?our product dovetails into a section of the market
As we continue to consider finding an appropriate fitperfectly and all of our marketing and advertising
within the market for our product or service consideractivities and budgets are seen to work in a most
the latest video game which has entered the market.efficient manner.
If you were tasked with making maximum sales ofIn summary, there are various components which
this product in a given period of time what groups ofmake up a marketing strategy, segmentation
individuals would you get together into a room to talkstrategies play a major part in the overall marketing
about the product in order to effect the most ofstrategy of any organization or small business. Using
amount of sales. Would you call up the local churchthe examples above and using it as a template for
and ask the pastor for permission to address theyour niche marketing exercise will serve your
congregation after the next prayer meeting ? Ofcompany well.