Market Segmentation is a simple concept, that can help your business to gain an advantage, even in very competitive online categories.
You know that 20 percent of buyers consume 80 percent of your product, so the idea of market segmentation is that you could sell much more products with much less effort if you can identify that 20 percent and find others like them.
People that's interested in it, and consume your product, can be thought of as a market segment. So the idea behind market segmentation is to target, communicate, sell and obtain feedback of your best customers.
In order to survive and prosper as a company, you need to choose the right segment fo the market, then you will achieve large sales volume and profitability
In a market segmentation campaign, to choose the right segment of market, the segments should be:
- big enough to generate good sales volume
- reachable by your company's distribution methods
You must also know which are similar products that can be offered to your buyers, and your competitor's sales strategy.
You need to satisfy and keep those consumers that love your products or services, being aware that new products are going to be offered to them and with different strategies.
And of course, once you have segmented your market, you must offer different products and maybe use different sales strategies for the different segments.
In an example, if you offer sports shoes, the market segmentation can be done by sport or by gender, and then further segment your market with specialized models for each sport, gender, and age.
As you know, we are a home business site. Many people are interested in having their own home business, but, do they all want the same?
You can be sure that not everybody wants the same, and that's why we have
- The Monthly Residual Income Program for those that want to build a big business with hundreds of affiliates working for them
- Make Money With Your Own Web Site for those that want to start their home business owning a web site
- How to Sell on the Web for those that want to become marketing experts
- The Viral Marketing Secrets for those that believe that viral marketing is the best marketing tool that you can use
Every time that a new product's idea comes to your mind, you must first estimate the size of your target market, to know if there are going to be enough buyers to provide you enough sales and profits.
Another important issue is that you must try to sell more than once to the same prospects. 30% of people that already bought from you, will want to buy again.
So if you offer a product that is bought once in a lifetime, unless you have such a big market that you don't care, you should try to find something else to offer to your segment of the market.