How To Scientifically Choose Your Market Part 3 by Zama Zincume
If you’ve been following the discussion in this series you’ll be aware that it’s important to start with the prospect, not the product. In generating your market ideas you need to be very clear about what type of business you’re in.
When you’re in “business-to-business direct marketing”, it’s when selling a product to a business or professional audience. In “business-to-consumer direct marketing”, it’s when you sell goods, services, and information to the general public. So come up with as many products as possible that would be of great benefit to your market. You have to find a big need and fill it
However, there are four critical keys to effective marketing that you need to look at.. These are principles that you need to pay close attention to. You need to revisit them even when your business is running and you’re selling your products.
SPECIALIZATION
Trends have shown us that specialization is the key to success. Doctors that are successful are not just General Practitioners but those who are Surgeons and Cardiologists. It is those who specialize in a specific area that succeed.
You must focus and decide in exactly which area of your product market you are going to specialize in. Your focus can be in product/service, customer/market or geographical area.
If you live in South Africa you’ll know that there are companies who specialize in a product/service area like Cashbuild (hardware). They have also segmented their market.
Edgars specializes on apparel and South African Breweries are leaders in beer marketing to a specialized market.
DIFFERENTIATION
Your success in creating wealth in your business requires that you be both different from and better than your competitors in some clear distinct way. Be very clear about your area of excellence. Are you offering better products or services that are better than your competitors?
Your area of excellence is created by becoming very excellent in some area that is so important to your potential customers.
Your competitive advantage can also be distinguished by your unique selling proposition. What this means is that you are offering one benefit that is exclusive to you. It is unique. No one else has it.
You have seen how McDonalds is located. It’s easy for the customers to come in and out. This is unique to them. Be the best in what you are offering.
SEGMENTATION
A good example I have seen in South Africa is how Edgars has segmented the family clothing market. They have separate chains to cater for each broad segment like Jet.
You divide your prospective customers into separate groups, based on the product or service area you are specializing on. You clearly define and identify those customers who are ideal for what you sell and who are appreciate and are willing to pay for that product.
In market segmentation, you start with a description of your ideal or perfect customer. Describe the customer. You can even segment your segments. Finding niches within niches.
Your only hope in acquiring customers is to focus most of your time and attention on:
- Determining exactly who your customers are?
- Where they are?
- What you have to do to get them to buy from you rather than from someone else.
CONCENTRATION
After applying the principles of specialization, differentiation and segmentation, you must concentrate your limited resources to the product you have chosen. You have to laser focus your time, energy, and money on those prospective customers that you have identified to be the most likely to buy from you.
Marketing always include everything you do from the day you start into business, including choosing your name, products and every other elements of the marketing mix, right up to the moment of selling.
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