Experts believe that market segmentation is the procedure of dividing potential customers into multiple groups says, Fred Auzenne. It depends on different factors. These are behavior, demographics, and market scenario. A former Armed Services counterintelligence specialist and Arizona-based business leader, Fred Auzenne serves as an executive advisor of Culture Index.
It is a strategic advisory firm that consults entrepreneurial leaders on the best ways of scaling business. Fred always had the passion for placing people in the correct position, helping companies realign their employees, and improving overall engagement. He understands the significance of multi-segment marketing as a tool for achieving business goals.
Areas to consider while segmenting the market
The way you segment your market must have the potential of further segmentation to adhere to different parts. Hence, there are a few things you will have to look into while determining the current market. These are the size, growth potential, reachability, affordability, responsiveness, and much more. When you are the leader of a firm, you have added responsibility. While managing, hiring, and motivating top talent, you will have to consider multiple criteria. Culture index comes as a preeminent solution for maximizing the company’s goal.
Fred Auzenne, while heading the Cultural Index he managed the Entrepreneurial Opportunity Fund in 2009, which is a private equity fund operating in multiple markets. Fred Auzenne spent the initial years of his career as a special counterintelligence agent in the US army. During the seven years of his service, he grabbed various awards and citations.
Moreover, he also grabbed a place in the All-Army Pistol Team. Presently, he takes an interest in marketing and sales functions. He provided strategic leadership for the company and made sure that it met its performance aims. Hence, he comes as a striking example in the field of multi segmenting market.
The size and identifiability
The two most important areas that entrepreneurs will have to keep in mind are size and identifiability. You must be clear about the purpose of your segmentation. Remember that few consumer characteristics you will have to keep in mind while you segment the market. If the segments are small, they will yield minimal returns. Hence, make sure that each piece is large enough so that it comes out to be profitable for your venture.
Affordability and responsiveness
The other two areas that you cannot avoid are affordability and responsiveness. Although some segments of the market are tempting, they may not turn out to be cost-effective. You have to complete the cost-benefit analysis for determining the worthiness of the investment. If the proposed market responds to your marketing message, there are high chances of increased revenues. Hence, responsiveness plays a central role over here.
Lastly, you will have to understand the alignment and reachability of your firm. Before you decide to segment the market, you have to ensure that your company has promotion and distribution channels—this helps reach out to the target client. You will have to align your objectives and values with the market scenario. Only then can you predict your clients to achieve your aims faster.