Well thankfully there’s a great way to help you SMASH the right market! This handy acronym will let you analyse a segment of the market so that you can decide which ones to pour your efforts and resources into!
Here’s how it works:
When it comes to sales, size does matter. You need to find out whether this market segment is actually big enough to be profitable.
Some segments might be easy to sell to, but that won’t be much help if there aren’t many people in it! You’ll get off to a great start, but once you’ve won everyone over you could see your leads drying up very quickly.
Each segment will have defining characteristics. There are all sorts of ways to divide potential customers into groups, but some are more easily measured than others.
For example, you might know that your product is perfect for people who like flamingos, but how easy will it be to find those people? But on the other hand, if your target market is managing directors, or people with a London postcode, then you’ll have much more luck!
You need to think carefully about how easy it will be for you to access this segment of the market. Will your current resources or distribution channels reach it, or will you need to invest a lot into something else?
Some segments might not even let you in the door until you raise your profile in the industry, or might be overseas and require you to invest in a new international office and team. Make sure that the business opportunities outweigh any costs involved in reaching them!
Before you’ve even settled on a target segment, you need to be thinking long-term! For instance, will the segment even exist long enough to make it a worthwhile investment?
Look at the fast-moving world of technology, for example. Say you create and market a product which works with the latest iPhone. It might sell well for the first year or two, but after that a large chunk of your customer base will upgrade to the latest model, making your product obsolete. Will that be enough time to make it pay off?
This segment of the market will share certain characteristics, but that doesn’t mean that they will share everything in common. For instance, you might be targeting people with sport cars, but owners of certain models might be extremely loyal to that particular brand, and may not even consider the alternative you’re offering!
You should also think about whether most customers in the segment will respond to the same marketing approaches. If not, then perhaps it will be too difficult to sell to, and other segments might make better choices.
Use this technique and you’ll end up finding the perfect target market! Now get out there and completely SMASH it!
If you liked this, then you’ll love our training course on ‘Understanding Customer Segmentation and Profiling’! It’s 100% online, and completing it will even earn you an internationally recognised qualification from the ISMM!