consumer research

Identifying New Market Segments

Identifying and defining a new market segment can present many exciting opportunities. When done in a professional manner, it is possible even in today's crowded Business World, to find a new niche for your company's product or service. Well there are many steps in the process, there are a few steps that feature prominently at the top of the list of priorities. The first step is to come to terms with defining your target market. You can go into as much or as little detail as you like when defining a target market. The more detail you provide, the better the plan turns out. Key identifiers may include geographical location, demographics, and even cultural or religious beliefs. The more confident you are about your segment definition, the better.

Once phase 1 is completed, it's helpful to go a little deeper. Success lies within the details, which can be ironed out by asking a few key questions. Arguably the most important question of all is whether or not the segment you have defined is large enough to support your business' product or service. This will help you get an idea of whether or not this segment will fit in with your company's business model.

The third step involves taking an even closer look at your existing data. Many types of data will assist you in your entry into a new market segment, such as the current purchasing habits and patterns within your desired market. The key is to focus on gathering as much information as possible.

Following these steps doesn't in itself guarantee you success, but will go a long way in helping you to bring it about for yourself. When in doubt, do more research and don't be afraid to ask questions.

Knowing About Market Penetration

In the marketing sphere, it is often necessary to keep your fingers in many pies, so to speak, in order to maintain a competitive edge. When marketing a new product, it is of utmost importance to keep a close eye on your market penetration statistics. Market penetration, in a nutshell, refers to the extent to which a product or service is being purchased by customers in the current market. As one would imagine, the market penetration figures for a new product can give a real-world representation of the efficacy of a company's marketing strategy as a whole. The more convincing you've been, the higher the number tends to be. There are a number of strategies that exist to increase your market penetration, such as dropping the price of your product, bumping up the number of promotional schemes and encouraging non-users to take the plunge and try something new.

All in all, the market penetration figures for a product or service will give you a very clear impression of its popularity, and by extension can validate an entire marketing strategy. It gives a solid impression of the initial and ongoing impact your strategies are having on customers and as such, should be regularly monitored.

Market Analysis: Understanding your Customers

In order for any business to succeed, an understanding of customers' wants and needs is vital. It is of the utmost importance to gain an understanding of your market long before you take a serious financial plunge. A properly structured market analysis will provide you with all the information needed to make smart choices further down the line. Without this solid foundation, any business may struggle to stay afloat, let alone play in the "big leagues". Consumer research is generally the best starting point for market analysis. In order to provide customers with a product or service that they truly need, you need to understand their behaviour a little better. Find out what makes your potential customers tick, and then find out how your product will be able to fulfill these needs. Open up the channels of communication, do a survey or two, and spend some time figuring out how you can gain the edge on your competitors. Do some trend-spotting, and zone in on any gaps in the market that your company may be able to fill.

Decide on your target market and then build the rest of your business plan around this focus. Play to your strengths.