Market Segmentation

You can begin by finding out what markets your competitors are currently serving, where market opportunities exist and which markets will be most profitable for your business. You want to ensure that your customers will have easy access to your products and services. Will they access them through your business location, by phone, fax, e-mail or your website? Will they buy directly from you or through a dealer, distributor, independent sales agent or retailer? Determine and eliminate markets that are inundated with other products and services that will be indistinguishable from yours. You want to focus on customers who are willing to pay a price for your products or services and markets that allow you a reasonable profit margin.

Through market research, you can also discover if your potential customers fall within a certain age, gender or other characteristic. They may have a specific socio-economic status, occupation or may be a group with common or special interests, such as sports or hobbies. For business-to-business marketers, research can tell you how companies are buying products likes yours, who the real decision-makers are and what motivates their purchase decisions.

Perhaps the most important question confronting a business when marketing a product or service is determining the size of the potential market. With the Internet and global commerce, this is more difficult then ever. Market research can help you narrow down the geographic area or determine the targeted industries or customers. Combining this information with relevant census or economic data can give you an estimate of potential customers. An initial estimate of the target market will help with forecasting and production estimates.

Finding and gathering information on your potential customers can be difficult because they do not have an established relationship with you or your company and may not even know you exist. Prospective customers may be currently buying from the competition or they haven’t had a need for your products or services in the past. Understanding why these individuals are buying from your competition or simply not buying at all will help you determine the best methods for reaching them and the most effective messages for transforming them into customers.

Customers will purchase your products or services only when they have a need for them. Determining how to satisfy those needs involves gathering information from potential buyers and translating that information into product specifications and product attributes. Keeping customers’ needs satisfied creates customer loyalty and helps determine future preferences.

Determining your potential customers’ purchasing process is an important step in making a sale. Individuals have a specific process when making the decision to purchase products or services. This process includes problem recognition, information-gathering and evaluation. Vernon Research can help your company determine the best way to make a convincing case to potential customers and when and how to communicate it. Reaching people at a critical time in the buying process is key to influencing them.

Market research is like testing the waters before jumping in. If you can determine exactly which group of people you want to reach and identify their needs, you will avoid wasting time and money. Once you find your target market, you can alter your products or services to fit the needs of your potential customers and craft a message that effectively communicates.

Vernon Research Group will help you gather the information you need to determine which markets exist and which markets meet your company’s objectives for the best return on investment.