I see a repeated trend with clients. When I ask them what their target demographic... many of them confidently reply "everyone." Or they think about the question for a moment and respond "anyone who... lives in Northwest Arkansas." So I've opted to rephrase the question.... "Who is your ideal client/ customer?" You should be able to narrow it down to at least a few common characteristics. It can range from where they shop to gender to interests.... education, income and... well, you get the picture. That's why I love market segmentation. You don't have to have just one ideal customer. The key here is to establish several different groups of people to appeal too. I'll create a separate post on market segmentation. The benefit of developing marketing segmentations is that it allows you to create strategic plans to reach this group.Today we will focus on the four Ps of Market Segmentation. The idea was established by Neal Borden in 1964. These 4 Ps should help you to identify who's attention you want to gain.Product, Price, Place, and Promotion. These 4Ps help you to identify how to create your strategy.
Product - This can be a tangible item or intangible service. The question at stake is not "what is your product?" It's "what problem does your product solve?" Who would have this problem? Where might they hang out? How can reach those people with the problem that your product/ service can solve? It is important to not only identify these individuals but to understand them and to put yourself in their shoes.
Price - How the item is priced will greatly affect who your audience is. You wouldn't target college students with part-time jobs if you were selling a high end, name brand purse... would you? If your product is a luxury item, it is important that the customer can justify the purchase. Having a positive customer perception is imperative.
Promotion - You have to be able to tie in the product and the pricing when using promotions. Promotions can vary in many forms and techniques. It can range from advertising, sales promotions, and public relations. Maybe you offer a discount for spotting your ad and mentioning it. There has to be a benefit to the promotion you are setting or a strong message that will resound with the client.
Place - How will your product or service be accessed by your ideal customer?It is important to realize that these four should be used in conjunction and give you a steady outline of how to identify your market segmentation.
Let me know if this was helpful and what you would like to see next!! Kelsey Smith