Showing posts with the label target market

The Benefits of Niche Markets on Small Business Success

Small and large businesses use different approaches to successfully navigating their markets based upon the resources available to them. Large businesses reach for larger target segments while smaller businesses focus on attracting a smaller group of motivated customers. Niche markets offer an entry position for small business to start building their customer base before expanding into new niches. Small Business Does Well in Underserved Markets Small businesses are likely to succeed in markets currently not being served sufficiently by other businesses. They do so through creating brand recognition among those that desires their unique types of products and services.   Highly motivated customers will recognize the brand the next time they consider making a purchase. For example, it would be extremely difficult for a small business to compete against a large retail outlet by selling disposable pens. However, through selling unique pens, customized pens, embroidered pe

The Process of Market Segmentation

As most companies cannot compete in an entire market, they usually break down it down into smaller markets. This process of market segmentation affords the opportunity to focus selling products in one, or a few, defined areas. It helps to create focus and effective use of marketing resources to maximize return on investment. Effectiveness is seen as dollars spent and dollars earned.  As companies gain resources and knowledge, they begin to use market research to develop complex and effective marketing strategies. The process of evaluating a market segment helps in developing strategies that further create efficiency in target marketing ( Kutkut, 2012). Target marketing is the chosen focal point of the products/services, advertisements, and related efforts.   As the skill level of managers rises, so does the success of reaching and influencing the target market.  There are generally four levels of market segmentation that include (Finch, 2012): Mass Marketing: The firm