Using Market Segmentation to Improve Your Business

This episode explains market segmentation, strategies to identify your target consumer, and different ways to incorporate the Exit Mindset in this process. Key Links Sign-up for your FREE COPY of Exit Mindset (Releasing soon!) http://exitmindset.com/ ----- What is Market Segmentation? One of the most important elements of your business is who is purchasing your product. Market segmentation refers to the different types of consumers you target and how those consumers are categorized. Segmentation and Target Market Analysis Wouldn’t it make more sense to you target people who like your product? When it comes to market segmentation strategy, you have to consider all three principles - product, infrastructure and conversation. Product Is your product right for the market segment you’re targeting? First, look at your revenue. Then, evaluate your market research. Infrastructure This can cover a wide range of departments and processes, including support, sales, operations, marketing systems — and everything in between. You need to identify the problem areas and troubleshoot how to make tweaks and improvements. Conversation This refers to all of your verbal and non-verbal communications with the consumer. Most businesses only focus on changing the latter, while ignoring the non-verbal conversation. Brainstorming Ideas for Market Segmentation Create three columns; one for your product, one for infrastructure, and one for conversation. In each column, write down three things that you could change to improve the corresponding principle in relation to your market segmentation. This will likely require a brainstorming session with your team, write down nine different ways that you could implement the idea. Methodology can bring about the results you want, especially if you designate a team member to focus on each strategy. If you actively work to implement ideas and assign them to your team members, you’ll find that your ideas can become reality. 4 Consumer Market Segmentation Classifications There are hundreds of factors to consider, but here are four important types of market segmentation. Age Your infrastructure would need to be tweaked as well. You may hire different staff to handle certain processes based on the age of your target market segment. Oftentimes, business owners over-generalize their target market. Try to specify your ideal market segment as much as possible. Gender Gender can affect certain needs, desires, and expectations. As a result, you’ll have to adjust your product, infrastructure, and conversation accordingly. Income Income is a major factor to consider when specifying your target market segment. You’ll also have to consider the spending and saving habits of your target consumer. Family Dynamic The family dynamic of your consumer could affect your product, infrastructure, and conversation. These factors will all affect your consumer’s needs and interests. Taking the Perspective of a Buyer Selling to the wrong market segment or not exploiting your product to its full potential could severely reduce revenue. In turn, this could devalue your company and decrease the incentive to buy it at a fair price. Buyers will offer yo...