In our earlier blog posts we covered important issues surrounding taxes and tax compliance.
In this issue, we are going to look at a whole new topic of interest that is important for you as a business owner or entrepreneur. In fact, it’s a topic that many businesses, may have never heard of or have even given a second thought.
When startups and entrepreneurs put together a business plan for their specific business venture, they will usually define their market segment in terms of size. Why? Because at the ending of the day, the key question is “What is the dollar value of that part of the market my company is interested in’’? And that is fine and is the bottom line for most businesses. However, after the market segment has been determined, most businesses and entrepreneurs do not take the time to determine the characteristics of the persons within the market they are targeting. Sounds a little confusing? Put another way, when
selling a product or service, one should know who they are selling that product or service to. It is not enough to just define a particular segment or group of people.
You may ask some basic demographic questions such as their age and gender. But to further define your customer, it is important to determine other traits that define the type of customer your product or service caters to. Other relevant questions you may ask are:
What values and benefits are my customers seeking
What are their beliefs?
What are their social habits and interests?
To which Income category do they belong?
How is their household unit defined?
The above are just a few examples that may be relevant to your product or service.
Defining your customer in this manner helps your business to better define the types of products and services you should cater to your market segment, defining your customer in greater detail as you go along. Over the long run, it will also help you to reposition your products and services from time to time as customer characteristics evolve. This type of evaluation keeps your company innovative and allows you to spend more time marketing to the right customers.
If you have questions about this article, feel free to contact us. You can also find our latest blog posts on our web site.
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