Determine the Appropriate Market Segmentation or Your Business Fails

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Market segmentation is a sentence that quite scary and seem complicated for some people who jumped to build a business. In fact, market segmentation is one important element in our efforts to increase sales.

Well, I will explain in simple language and easy to understand what it is market segmentation. Some say market segmentation is a method of how to view market creatively. That is still ambiguous for business beginners, so it's simply a process of market segmentation is to determine the primary target of product or service will we sell.

You are still confused with definition of market segmentation above? Well, one of the effects if you don’t know who is right for market segmentation of your product is what you will do and no matter how great marketing costs already incurred will be useless, even if your product have high quality.

The easiest example of market segmentation is that you are selling a luxury car (product) at a price of $ 100,000 (price) and then you sell to a beggar (targeting & segmentation). Although that luxury car you have crazy discounts up to 75% (promotion),  beggar will not buy. Why? Because he was not need. It's different if you are selling to the luxury car lovers market segmentation, the result will different.

It was also same as when you sell chicken meat to the market segment of people who are vegetarian or you are selling shark fin to the traditional markets are not necessarily the people who love to eat seafood and the deep pockets of consumers come to the place.



The result must be zero, even though prices have you down furiously until well below market prices. This is because the behavior of different markets.

Suppose we want to set up a boutique business. The first question is whether we are going to sell the women's or men? For parents, adults, teenagers or children? Once we decide on one of them, such as women's clothing. Congratulations we have made a meaningful segmentation. This is because the level of a certain age and gender differences is the different markets and we have to choose one of the group is to segment the market.

Then how do I find the right market segment? Market Research!  Once you know who your target market, you will be much easier to do deals and make sales. So, look at your market segmentation is always creative. Determine which market group that you select, design and marketing tactics you, then do the sales. That way you are likely to be larger to increase sales, right?

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