How Are Market Segments Useful To An Entrepreneur
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Market segmentation is the process of dividing a target market into smaller categories which can be really useful to an entrepreneur.
The reason why market segmentation is so important is the idea that “your customers are your product”. An entrepreneur needs to understand the basic needs of potential customers as it can help them grow their sales.
For example, a seller might notice that their potential customers are talking about a topic such as child birth in chat rooms. This might trigger the seller to include an epidural (pain relief) option on their product.
As an entrepreneur, if you have the skills and knowledge to understand and prepare such a product, you will stand to make more money.
If you were an average seller who sells a mediocre product, you will make less money and sell less products. In the end, you will have only a few successful products out of the millions that you sell.
However, entrepreneurs can make great deals with someone who sells a superior product. If you were an average seller who sells a mediocre product, you may miss out on potential customers who buy a superior product.
Market Segmentation is a Management Skill
The approach of segmentation can be thought of as the art of dividing a market into a few sections that can be really helpful to an entrepreneur.
When it comes to segmentation, there are certain common strategies that can be used to find out information about your customers.
The common strategy that is used is to ask about their lifestyle, demographics and interests. These questions are usually found by using a combination of data mining and statistics.
If you need to find out information about your potential customers, you can use the golden mean quotient to get an idea about their preferences and preferences of your potential customers.
The golden mean can help you find out what products are popular, what products your customers might like, and what services are popular.
Here are a few ways in which you can use the golden mean quotient to obtain the above information:
1. Answer the following questions:
- Which products do your customers like?
- What is their lifestyle?
- What are their demographics?
- Which services are popular with your customers?
Here are the answers to these questions:
Some of your customers like video games such as FIFA Football, Call of Duty, PUBG, etc. Some of your customers like guns such as AR 15 rifle, pistols, etc.
The service that you offer is customer support and its popular with your customers. You can offer different services that customers like the most and which helps them solve the problem or pain point that they have.
2.Include findings in your business plan
These two questions are important for segmentation but a further technique that you can use is to include the findings in your business plan. You can categorize your customer group by gender, income, age, geography, etc.
An example of a customer segmentation can be given below:
Let us take a look at the set of questions that you will use to categorize your potential customers:
- How many people are in the group?
- What percentage of your customers are male and female?
- How much money are they making?
- What is the age group?
- How many are playing Call of Duty: Black Ops 4 at the moment?
- How many are playing Black Ops 4?
3.Participate in an online survey
Another method that you can use to get insights about your potential customers is to ask them to participate in an online survey. This can be done through MailChimp. The mailchimp.com is a free email service that you can use to send surveys to your potential customers.
An example of a survey:
Here are the questions you can use to ask the participants in the survey:
What are your first name, last name, date of birth, and email address?
What is your company name? Which country do you live in?
What is your occupation? Do you like to play video games?
If your website has some social media accounts such as Facebook, Twitter, Google+ and LinkedIn that you can utilize for engaging your customers, then you can use those accounts to interact with your customers.
You can use them to ask your customers for feedback and feedback on your product.
4.Conduct social media analysis
The last method you can use to get insights about your potential customers is to conduct a social media analysis. This can be done through a tool like Sprout Social.
The major tool used in this process is Facebook.
When you choose to do this, you will need a Facebook account. The goal is to get insights and ideas about your customers through this social media account.
These insights can be used to enhance your marketing campaign so that you can enhance your conversions.
A good idea would be to use a good set of metrics in order to evaluate the effectiveness of your social media campaigns.