Market segmentation gives room for a more manageable business endeavor. It is a marketing technique in which a large market is broken up into small sub-markets that can be handled more easily. It is one way of reaching to a more definite segment of consumers to ensure success in product selling and to dominate a certain market group. Through market segmentation, companies are able to manage the sale of their products more conveniently because the target market is reduced to a more convenient size. However market segmentation does not just entail plain segregation. You need to create models to serve as examples and guides in the implementation of your marketing plan. Here is how to create market segmentation models:
- Draw your goals and objectives and name the products or services that you aim to deliver.
- Come up with a basic model structure that can serve as a foundation for other market segments. This will later serve as a pattern for other market segmentation models that may shape later on as you expand your business.
- Know and identify what product you will put up for sale.
- Categorize your target customers and find out what they want.
- Consider the demographic changes that may affect the sale of your product.
- Incorporate a well-developed marketing process to reach your target customers.
- Visualize what policies or action plans your competitors will most likely launch with their own products and services. Though your goals and priorities run parallel to theirs make sure you inject variety in style in terms of marketing methods.
- Mark the different phases of business process scheme including the various promotional activities that come along with marketing procedure.
- Make an assessment of how your present product offering appeals to a certain market segment. Does it have value to the customers? Does it answer a current and immediate necessity, or does it answer a long term need?
- Set a specific date on which to launch your offerings to the public. Analyze the market positioning on this date based on preceding marketing activities to be possibly undertaken by other companies.
- Set down an evaluation process to estimate the actual monetary returns once you commence your sales.
- Conduct surveys and interviews of client groups that more or less represent authentic consumers. Record the data gathered for later use in value-assessment of your products or services.
- Construct a value model based on researches and surveys. This will help determine how people regard your offerings. Do they prefer it to other previously introduced products? What is their opinion on the price, quality and marketability of the products? These are some questions that you should find answers for.
- Validate your value model by expanding your research and conducting more interviews with customers. Through this validation, you will be able to review your product and perhaps make improvements in certain aspects, based on the opinion of the public.
- Lastly, implement the market segmentation model through information dissemination. Publish articles about your offerings. Unless you create awareness about your products, your model is rendered futile.
Creating market segmentation models is not a one-man thrust. Rather, it is a collaboration of ideas among management, supervisory and rank and file teams who are directly involved with marketing goals.