I have been told my business could benefit from segmentation – what does this mean?
Effectively this means dividing customers/clients into groups that have the same needs. A marketing mix can then be developed or adapted to cater for each homogeneous market chosen to target.
Each group identified must be:
Measurable - Information must be available to determine the size of the market, eg how many businesses are there and where are they located?
Accessible - The organisation must be able to promote the service to the whole segment identified using the same method / media ie trade magazines.
Substantial /Stable - The segment must be a good investment of time and resources put into it, ie effort = profit. It must be a segment forecast to be around for some time.
Homogeneous - The segment defined must act the same, for example, identifying not for profit organisations in South East England as a segment may not mean they all behave the same way.
- The organisation can match its strengths inside the business with the segment.
- It can monitor the segment easier.
- It can become an expert in a particular field.