| In creating a business plan, there are many ways to | | | | supplying? If customers are buying from your |
| segment customers. We'll look at three major areas | | | | competitor, what degree of loyalty do they have? |
| that must be addressed when trying to decide this | | | | How can you not only acquire a customer but also |
| customer segmentation. It will become clear why these | | | | instill loyalty to your offering? Can you create features |
| areas are important and how they are used to | | | | or benefits for which the customer is willing to pay a |
| concentrate on a piece of the market. | | | | premium? |
| The first area addresses who is doing the buying. | | | | Finally, why are your customer groups buying? You |
| There are many ways to fracture customers. Some | | | | have already answered some of these questions in |
| common ways are by geography, personal features, | | | | the previous two areas, but they leave several |
| life situation and character traits. Major groupings of | | | | additional areas to be considered. How can your |
| people often buy similar products and services. How | | | | offering improve their life? What hobbies or habits can |
| small or large of an area will you cover? Are you | | | | you tap? Are they risk-takers, innovators, or do they |
| interested in a country, region, city, or neighborhood? | | | | lag the market? Can you offer delivery options that |
| What general things do your potential customers use | | | | are attractive or that they are willing to accept |
| on a regular basis? What is their life-phase (e.g. young, | | | | premium pricing to receive? Are they price conscious |
| old, mature, active, physically or mentally limited, | | | | and willing to accept basic offerings? Are there |
| educated, with family, financially secure, retired, etc.)? | | | | marketing options that allow others to market your |
| To what does this group aspire or portray? What | | | | offering for you (e.g. doctors, lawyers, friends, etc.)? |
| character traits can you align your product or service | | | | How will you reach these other groups? How will you |
| with? To whom or what do they relate? There are | | | | document this in your business plan? |
| many choices and the question you need to answer is | | | | These are primary areas of concern relevant to |
| how to narrow the world of choices to those that you | | | | market segmentation. A thorough review of these |
| can sufficiently and realistically service. Then, these are | | | | questions, potential answers and marketing methods |
| incorporated into the business plan. | | | | will suggest ways to reach your customer segment. |
| Second, decide what the customer group is buying. | | | | You will identify your customer segments and know |
| How does this information fit into your general business | | | | why they are important. The questions will also point to |
| plan? What offering features, benefits and price are | | | | areas where more research, development and future |
| important? How is their present need not being fulfilled? | | | | growth can be achieved. This will help you tailor your |
| How will you position your business to fulfill their need? | | | | business plan to the exact area you wish to service. |
| What price range are you planning to cover? Is your | | | | Also, because of the knowledge, you will be in a |
| competition servicing customers and what is their price | | | | position to defend why this is an appropriate course |
| range? What can you do to provide features or | | | | for your business offering. |
| benefits that competitors can't or aren't presently | | | | |