1. Target
At this stage, you must determine which market segment is the best for your business. To determine this, there are three factors you need to consider:
Profitability
Profit is the main goal of your business, right? Therefore, you have to make sure that the segment you want to target does generate the biggest profit.
Do not let you target students, but the product being sold is a sports car. Yes, indeed there are students who can afford it. But, isn’t it better to target people who are already working?
Its Size and Growth Potential
Segmentation does divide the market into small groups. However, that doesn’t mean you can simply divide all markets. Divide the market that is large enough and avoid dividing the market that is already small. Because, a small market will limit the development of your business.
In addition, you must also pay attention to the potential growth of the market in the future. Do not let you choose a market that has stuck or is shrinking every day. Your profit may not increase, but even decrease.
Ease of Access
Why choose a market that provides profit and has great potential, but you can’t sell there. For example, suppose you target the United States market but don’t know how to sell products or communicate with potential customers there.
Therefore, you must choose a market that is easily accessible—both to you and to the consumer. Pay attention to things that could hinder access to the market. For example, are there technological limitations, cultural differences, to applicable laws. Do not let you sell laptops and target the North Korean market because there is no internet access for the public.
2. Positioning
Positioning here is how you position your business in the target market segment. In other words, you must be able to offer something unique that makes consumers choose your product over competitors. Take the iPhone for example. Apple positions the iPhone as a luxury smartphone with premium quality. In this way, the iPhone’s target consumers are people who don’t just want to buy a smartphone. But, also people who seek prestige and luxury at the same time. Well, to position your business properly, there are two tips that you can try:
Offer Solutions to the Problems Faced by the Segment
Each segment must have one or more problems in it. To find it, you have to do in-depth research first. You can watch the market movements closely or ask many consumers directly.
Once you know what problems you are facing or potential problems that will arise, you can offer solutions. This solution is of course in the product or service you sell. In this way, consumers will make their choice on you. Because, you offer something that is not owned by competitors.
Find Your Unique Selling Point
What sets your business apart from other competitors in the segment? Why should consumers choose your business when competitors A and B also offer the exact same thing? What makes you different?
To answer all these questions you must find the Unique Selling Point (USP) of your business. USP is what makes you different and is the main reason why consumers are willing to spend money on you.
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