After identifying potential market segments, the crucial next step is selecting the right ones to target. This ensures your resources and marketing efforts focus on the customers most likely to buy your products or services.
1. Evaluate Segment Attractiveness:
Analyze each segment based on:
- Size and Growth Potential: Is it large enough with potential for future growth?
- Profitability: Are the potential profits attractive?
- Accessibility: How easy is it to reach with your marketing and distribution?
- Competition: How intense is the competition? Are there underserved niches?
- Strategic Fit: Does it align with your company’s overall mission, values, and resources?
2. Select Your Target Market(s):
Choose the segments offering the most significant potential. You might select one primary target or multiple segments to pursue with different strategies:
- Undifferentiated Marketing (Mass Marketing): Targeting the entire market.
- Differentiated Marketing (Segmented Marketing): Targeting multiple segments with different offerings and messages.
- Concentrated Marketing (Niche Marketing): Focusing on a single, well-defined segment.
- Micromarketing: Tailoring products and marketing to specific individuals or locations.
3. Develop Your Targeting Strategy:
Craft a comprehensive strategy that includes:
- Positioning: Define your unique value and how you want to be perceived.
- Messaging: Develop targeted messages that resonate with the chosen segments.
- Channels: Choose the most effective communication and distribution channels.
- Metrics: Establish clear goals and KPIs to measure success.
Tips:
- Conduct thorough research: Understand your potential customers.
- Be specific: Clearly define your ideal customer.
- Test and iterate: Continuously refine your strategy.
- Be adaptable: Markets change, so adjust your targeting as needed.
Example:
A high-end athletic apparel company might target young professionals, avid runners, and athletes seeking cutting-edge technology. They would then tailor their products, messaging, and channels to each segment’s specific needs.