Small Business Market Segmentation...Explained.

Know your target market because you can't be all things to all people!...  OK so I'm sure that you are aware of the term target market..... yep demographic, geographic and psychographic analysis  are all great ways to determine your target market..... But what happens when our target market is  too broad and generalised in nature....well... we break that target market down into segments....

Segmentation for your small business means dividing your target market into groups of consumers who have unique needs, characteristics and behaviours that will require unique products or marketing mixes.

Segmentation helps truly define a number of customer specifics....focuses your marketing efforts toward your customers needs, wants, fears and dreams to become  more relevant than the business down the road still happy creating marketing around basic demographic data.

 So how do I segment my target market?

Well lets start with four elements that need to be taken into consideration when forming market segments.

Measurable

without knowing how many potential consumers there are….it may not be worth the effort / risk.

If potential customers cannot be measured, you cannot create a measured marketing budget to target the segment...

Accessible 

A potential market segment must have its own marketing channels to effectively reach the target audience…how much marketing noise is in the particular market, if the niche isn't so "nichey" (I'm claiming that as a word)....maybe the segment isn't viable.

Different

Milk is milk….or is it??

A market segment will have a different response to the overall marketing mix (4, 5 or 7 P's which ever you prefer)  When a group of consumers inside that market express demands for product adaptation, it morphs into its own segment. 

Profitable

How sustainable is the segment and is it big enough to make a profit?

Selling lactose free milk would be a great market segment right now....but 25 years ago it was either full cream or skim and a lactose free range wouldn't sell.   

 Lets segment the milk market!

40 years ago milk was bloody milk, boy how times have changed...Cue the video!......

High protein, reduced lactose, no fat, low fat, skim milk, powdered milk, high calcium, extra dollop, A2, smarter white milk, omega 3, vitamin enriched……soy, almond, coconut.....goat and sheep.....

Segmenting takes customer analysis one step further.... it looks at purchase behaviour and the customers individual wants, needs, fears and dreams.... 

 I dream of a Utopian society free of inhuman treatment of animals.....buy ETHICAL MILK

I want my family to reduce chemical ingestion....buy ORGANIC MILK

I'm a 40yo woman that  needs to reduce the risk of osteoporosis... buy HIGH CALCIUM MILK

I'm a mother of 4 kids who needs cheap milk...buy GENERIC MILK

I'm a 25 year old women that fears I'm putting on weight...buy LOW FAT MILK

Most people consume milk.... and  segmenting the target market provides consumers greater choice and the manufacturer more profit. Certain milk costs more than others...but the demand is there for a number of specific varieties of product. Milk is not just milk!!! 

Segmentation allows you to look at your target market and really understand the who, what, when, where, why and how of your customers relationship to your products.... 

By better understanding your customer, you can not only provide more relevant products, but really narrow down your brand message to create more relevant marketing communications that are more genuine and less MASS market orientated. 

Real world...

When I first started introducing the Define marketing business to local owners I segmented potential clients into business types.... I met with hairdressers one week...mechanics the week after, each market segment has different and quite unique needs and marketing challenges.... 

I was able to focus my research efforts on the weekly business segment... better understanding potential clients needs allowed me to effectively communicate how I could help with specific challenges business segments would face......

think about your current target audience... how can you segment your particular list of clients in order to provide more specific and personalised service? Do you have any interesting segments that you have created along the way that you would like to share? Feel free to comment below.

Interested in marketing Segmentation for your small business? Go to www.definedesigndeliver.com.au to see how our service will help your business.

New Years marketing resolutions already busted?

Wow.... its already February and some of my own 2015 business objectives are well on the way to becoming a reality (yay me!) .... but there are a few that AHEM* seem to have been pushed aside...like this blog (*awkwaRD*)

So many times we start the new year with really clear goals and laser focus on what we want to achieve... then all of a sudden we find our selves sitting behind our desk counting the days until the Easter holidays.... you hearing me? 

But losing your marketing mojo isn't the end of the world...it just means you have to (once again) REFOCUS and get your mind back to improving your small business, making your goals more realistic, more business specific and in some cases.....less alcohol derived hahahaha 

   

So how can you get  back on track and maintain the motivation to make 2015 the year that you wanted it to be?... here are 3 things that can improve your success in meeting your small business marketing objectives in 2015... 

1. Fix the problem child

What part of your small business marketing is under performing? What was the marketing thorn in your side in 2014? Time to look at it through fresh eyes, spend some time analysing the root of the problem and find a solution!

Break off the ties that bound you in 2014 so that you can start working with a schedule that provides more time for marketing that will work, or have the ability to grow at a greater rate. Prune the dead wood so that new growth can emerge.... no fruit grows on a dead branch and watering a dead plant is simply a waste of time. Letting go of an aspect of your marketing can be hard, especially when it may have been your pet project, but harden up and make the tough call.....every part of your small business must provide a return on investment (ROI) within a realistic time frame...if it isn't...don't let it take up all your time and affect projects that will have more impact!

2. Create something new

What projects can you start developing to get your marketing mojo back on track? With some extra time in your schedule from fixing the problem child... get to work creating a new project.... get a new marketing campaign planned for your social media accounts... keep it fresh...do something that you haven't tried before to reinvigorate your creative side. Having a new "toy" will have positive flow on affects into your regular everyday work..... get refreshed creatively and take your small business ahead with something innovative.    

3. Keep moving Forward

Each step gets you closer to your goals.... look at your current marketing objectives and remind yourself of the awesome feeling you will get when at the end of the year all your marketing goals have been met and that you achieved what you set out to do. 

Keeping on track is much harder than simply setting the course, marketing strategy demands that you adapt and adjust your plans in order to meet your goals.... A plane landing at an airport cannot move the runway....but it CAN change direction and adjust to the conditions so that it lands successfully.... 

Unless you have set totally unrealistic goals...don't move your goal posts  so that you can achieve them more easily.....think outside the box...innovate and create an environment and conditions that will allow you every chance to meet your marketing objectives. 

So get inspired...your plans for 2015 can be salvaged with some refocus and strategic thinking.

Don't get discouraged and give up on your plans, a bit of determination might result in huge results to celebrate at the end of the year. 

I would love to hear how you have kept yourself motivated and on target to reach your marketing goals in the past or for this year.... feel free to comment below and share your experiences with everyone....We also post small business marketing tips and advice regularly on Facebook so don't be a stranger, if you like the blog our Facebook posts shouldn't be missed.    

 

 

 

 

 

Small Business Touchpoints

A thin business card is like a limp handshake and an unanswered social media comment is like walking into a business and getting completely ignored by the staff.

Sometimes the things described above are the first impression a customer receives from your business, and these days first impressions can come from ANYWHERE... so managing your touchpoints and creating positive first impressions is what this post is all about.      

Touchpoints?

EVERY part of your business that a customer comes into contact with is a touchpoint. Your Answering machine message, brochures, email signature.... your vehicle access, choice of toilet paper and EVERYTHING in between.

If a customer sees your brand or anything about your business it means they are already SEARCHING for a product or service that you may provide.You need to properly manage these customer contacts. You need to make your touchpoints consistent with your brand AND your touchpoints need to be geared towards meeting the needs of your target audience. 

"Customers are looking for confirmation,

 that what you offer

is going to meet their needs." 

Because every business is different, touchpoint selection changes as well. An online business relies heavily on providing easy site navigation and usability, a retail store utilises in-store displays and customer service; each have there own unique touchpoint requirements. If your customer reaches a touchpoint and thinks that your business may not meet their needs they will simply walk away and purchase somewhere else.... if your touchpoints lack impact customers have plenty of other options available to them, they won't even bother to walk through your door even if you do have products that meet their needs.

Real World...

A quote from a plumber can be hand written or it can be an opportunity to display their logo and relevant promotions to the customer... and although only a small aspect of a business, with proper analysis any touchpoint can have more impact.

EG:  Your plumber comes around to do a quote on a bathroom renovation. When you receive the emailed quote a clickable promotion for kitchen renovation plumbing is found  at the bottom of the email with a few short testamonials. 

This indicates that...

• the plumber does regular renovation work
• combining bathroom and kitchen plumbing may lead to a greater discount
• the plumber has experience
• positive testimonials indicate the plumber does a good job   

The plumber also benefits from...

• greater awareness of additional services
• direct marketing to generate future sales
• click through onto the business website
• increased customer engagement

Do your emails contain links to your current promotions?  If your prospective customer is already engaged make the most of it!

A word of warning... 

Badly executed touchpoints will turn customers away. Following up a positive customer service contact with 10 automated promotional emails will undo your customer service efforts and lead to instant distrust. A hand written quote may seem unprofessional compared to a printed quote on company stationery... on the flipside... some people may perceive a hand written quote as more genuine and personal ...it all comes down to your customers perception!

Now is the time to sit down and write a list of ALL the ways YOUR customers come into contact with your brand. Analyse each touchpoint and note how a customer would perceive your brand via that point?...are your touchpoints as good as they could be? If your touchpoints don't match up to your brand its time to get to work, prioritise the list and make that first impression count. 

 What innovative ways have you used to create memorable touchpoints? 

What are your thoughts on Touchpoints for your small business? 

Feel free to comment below.