Market Dissection



As brutal as it might sound: let’s dissect the market
it is crucial to have a deep understanding of the market you are operating in.
In previous posts, I have briefly mentioned the importance of selecting your target market. So, if your product is ticking all the boxes, you truly believe in your processes BUT the business is still hardly viable, then there must be something wrong with the market you have chosen to operate in.
Target market is defined as the market you intend to sell your products and services to which includes a targeted set of customers. As Alan Lafley the author of Playing to Win says you need to know “ Where will you play and how will you win”.  In order to reach out to your appropriate target market, you need to be able to divide the market into different segments. So, each segment will dictate who will be your potential customer.
You can have different approaches to market segmentation, just make sure you are asking yourself:
- If you have targeted all those potential customers that fit into the segment,
- Whether you understand your target fully,
- If your target will benefit from your products and services,
- If they can afford them,
- If your idea, product or service is easily accessible
The ultimate purpose is to learn as much about your customers and to be able to define your products within your customer’s expectations and preferences.
One approach can be dividing the market as follows:
v Demographic Segmentation (Age, earning brackets, high end and low end buyers…)
v Behavioral Segmentation ( User’s decision making patterns)
v Geographic Segmentation
v Psychographic Segmentation (Life style, social class,…)

For example, if you are offering adventurous travel packages and your main customers are senior people, you have definitely targeted the wrong segment Or if you are manufacturing high quality and expensive commercial furniture but your main audience is small businesses or start ups, you are not going to inject $$$$ into the business.
 Keep in mind that studying the market will give you valuable insights and increase your competitiveness and customer retention which boost your profit potential and create further opportunities for business growth.

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