The best way to go about in running a simple business is to figure out what it is that you should focus on selling and who you should be selling to. It’s every important that you’re able to understand that market that you’re in so that you can easily figure out who your target audience is going to be.
Considering the fact that there are many different types of customers, you must be able to divide them into the ones that you shouldn’t focus on and the ones that you should be selling to. Which is why this article is going to teach you all about market segmentation analysis and how you can go about in conducting one. You can also read sample market analysis templates.
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Market Segmentation Analysis Template
Market Segmentation Analysis Template
Sample Market Segmentation Analysis
Simple Market Segmentation Analysis
How to Do a Market Segmentation Analysis
Remember that the entire point of doing this is so that you can easily identify who your target audience is going to be. The more you understand the market that you’re in, the easier it will be for you to come up with the strategies that will allow you to win over of the people you want to sell to. It’s the best way to ensure that your business is able to stay ahead of the competition and it can help ensure that yours is one that can last for many years to come. You can also see market analysis templates.
With that in mind, here are the steps that will allow you to conduct an effective market segmentation analysis:
1. Evaluate the Market that You Want to Pursue
Decide which methods you want to define your segments by and which definitions best fit your business model. There are many different ways in which you can categorize the different market segments. Here are a few examples of what you can do:
1. Categorize them by demographics
This is where you will take a look at all of the different statistic characteristics of the people that you’re trying to market and sell to. You’ll be trying to see the age, gender education level, and even the household size of the consumers that are in the market. This is one of the easiest ways for you to determine who your target audience is supposed to be. You may also see stakeholder analysis templates.
2. Categorize them by geography
This is where you will be taking a look at where your target audience is going to be located. What you’re basically trying to do is understand where your target audience is situated in to see if your business is able to cater to them. Also, this will help you understand where your products and services are going to be used by your target audience. You may also see business needs analysis templates.
3. Categorize them by lifestyles
Each type of customers has their own lifestyle. You want to be able to understand the lifestyle of your target audience as doing so will allow you to come up with the products and services that will suit them. So what you’re going to have to do is to see what kind of activities your target customers are going to be participating in. This includes everything from what kind of hubbies they decide to take part in to what kind of vacations they enjoy. You can also read hazard analysis templates.
4. Categorize them by psychographics
This is where you categorize your consumers based on what their psychological and emotional traits are. So basically you’re trying to understand what kind of behavior they have when it comes to choosing and purchasing whatever products or services that they want. This will help you tell if your target audience are aggressive or will wait for you to approach them, are practical or impulsive and much more. You can also read case analysis templates.
5. Categorize them by life stage
This category uses the demographic and psychographic characteristics that groups have in common so that you will be able to determine where or when your targets are in their life cycle. Are they in their college days? Maybe they’re those that belong in young families? Or maybe they’re the type who don’t have children? This will help you see where they are. You can also read printable analysis templates.
2. Qualify Your Chosen Market or Markets
Now that you’re finished categorizing the different marketing segments, you should have an idea as to what kind of market you want your business to enter. But before you choose what kind of market or markets you want to be a part of, you must assess the ones that you’ve listed down to see what kind of potential they have when it comes to profits. You may also like analysis examples.
So as you’re choosing, you must be able to answer the following questions:
1. How large is the market segment now?
You’re going to have to answer this as you need to be able to figure out if the market segment you’re going to answer still has enough room for one more business, namely yours. If you think that it’s still large enough, then you may go for the option to enter the market. But if you see that there’s too much competition in it, then it’s best that you aim or another market segment. You may also like sample market analysis.
2. How easy or difficult will it be to enter the segment?
Let’s say that you’re focused on one particular segment because you know you can do well in it. You still have to think about whether or not it will be easy for your business to get in it. You need to take a look at all of the different factors that could affect your decision before you decide to make one. You may also read job analysis templates.
3. How will the segment grow into the future?
This will definitely affect your decision as you want to see if there’s a future to whatever market you decide to be a part of. If you think that it’s still going to grow even after a couple of years from now, then that’s a good segment that you should enter. If not, then best look at other segments that might have a considerable future. You may also read free gap analysis.
4. Does the segment fit well with the business that you’re running?
This is a questions that’s very important as you want to make sure that once you enter a particular segment, you must be able to meet its demands. You must also make sure that the one you decide to enter is one wherein you can adapt to whatever changes could happen. You may also like printable project analysis.
5. How difficult will it be for you to get the date to fully understand the segment?
You want to make sure that it’s easy for you to understand the good and bad of the segment that you want to be a part of. And knowing whether you can easily get information about it can help you determine whether you should enter the market or not. You may also read customer analysis templates.
Market Segmentation and Target Marketing Analysis
Market Segmentation Analysis Example
3. Gather and Analyze the Data of the Market You Want to Enter
As time and simple budget allow, use primary and secondary research sources so that you can have a better understanding as to whether or not you should enter the market that you’re interested in. You’re going to want to take a look at your sales data. Who purchases how much of what products or services? When do they usually buy what they want or need? Where are they located? Who does the actual purchasing and for who are those purchased items or? The more you understand the market, the more information you’ll get to help you consider your options.
Mine information from free or low-cost syndicated reports produced by market research firms so you can get more insight about the market you wish to enter. There are some that you can trust, but just make sure that they’ll get you what you need. You may also read financial analysis samples.
During your research, look for key similarities and differences among the general customer base. Do certain groups bunch together or break apart from others based on geography, demographic breaks or behavior? This cluster analysis gives you more clearly delineated segments and it can give you ideas on how you can communicate with your target audience via your promotional efforts. You can also like sample organizational analysis templaets.
Also, it’s important that you use the information to help you come up with the marketing strategies should you decide on the particular market that you want to enter. Since you’ve already gathered most of the data you need, you should be able to easily figure out what kind of strategies you’ll want to focus on in order for your to make your target audience engage with your business. Just be sure that you use accurate information to know exactly what you have to do.
Although all of this won’t be easy, it’s still best that you learn about the market segments. So follow the steps above if you want to have a good idea as to what kind of market you should be entering into. You may also read customer analysis templates.
If you want to know about the other types of analysis that you can conduct, then all you have to do is go through our site. It has all of the information that you need within the many different articles that you can access. The only thing that you have to do is to read these articles thoroughly so that you can make effective use out of whatever they tend to provide. You may also read requirement analysis templates.