In a perfect world, your business would have an unlimited budget to market itself and find new customers and increase sales. You would have been able to buy lots of online – and offline advertising space, run promotions to build traffic in-store and online, launch a proactive public relations campaign to increase your product and brand’s visibility and awareness and maybe even fireworks. Unfortunately, this is not true for most businesses. Reality is that, most small to medium businesses have more great ideas on how to “peddle” their products than available resources. So, what is it a business owner could do?
The answer lies in knowing your customer extremely well. Target market identification and segmentation deals with identifying customers and / or customer segments so that you could focus your marketing and sales efforts where you have the highest probability of success. This allows you to optimally apply your resources to reach prospective customers. The traditional approach to market segmentation entails dividing the markets using four lenses namely: demographics, geography, psychographics, and behaviours. Although this is a good starting point there are so much more to know about your customer.