Market Segmentation ? How does it Contribute to Organizational Success ?

 

Before we go into look at the ways in which market segmentation contributes to  the success of any business it is vital to understand what  market segmentation is in the first place.

Market segmentation could be defined as the process of   dividing the market in to different homogeneous groups of consumers who have similar interests. In other words, it could also be defined as a  strategy that involves dividing the market into various subsets of consumers who have common needs and interests regarding the goods and services offered. This is because by splitting the market into various segments it is possible for an organization to offer their marketing mix for specific target markets instead of offering the same marketing mix for the entire market which comprise of vastly different customers. To say, once an organization has identified their specific market segments/s they are able to decide on the marketing mix to the specific group of consumers which will enable them to better satisfy the needs of the customers.

Having said that, it is not just enough splitting the market into various segments, but the identified segments should have certain requirements meaning to say that they should be,

Measurable ( how many consumers are there, how much do they have to spend and where are they ). Accessible by communication  and distribution channels ( segments can be reached and served ) Different in its response to a marketing mix Not changing too quickly Sustainable enough to be profitable

By the way, if any of the identified  subsets of consumers lack the above requirements, than it is unlikely that the organizations may get a successful outcome.

Market segmentation could be carried out for both the consumer markets as well as for industrial markets. In other words, both the consumer and the industrial markets could be divided into subsets of consumers on the following basses.

- This means that the consumers in the market could  be segmented or divided according to the region( by continent, country, state or even the  neighbourhood they belong to ), according to the population, according to urban, suburban and rural areas, and also according to the weather patterns unique to certain geographic areas.  

– This basically means that the consumers are segmented according to the demographic variables such as age, gender, family lifecycle( bachelor, married with children, married without children etc), income, occupation, education, nationality, religion, social class. ethnicity etc.

– This is when the market is segmented according to the  life styles of the consumers. Some of the psychographic variables used in segmenting include activities, interests, attitudes, opinions and values of the consumers.

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– When it comes to behaviouristic segmentation, this is based on the actual behaviour of the consumers towards the product. Some of the behaviouristic variables used in segmenting are benefits sought, usage rate, brand loyalty, user status( first time buyer, regular buyer etc), readiness to buy, and occasions etc.

When it comes to industrial markets, usually the customers in there markets are rather fewer in number when compared with the consumer markets. But however, these customers basically look for more information with regard to purchasing goods and services while the decisions taken by them  involves more than one person. For  example, these include manufactures, service providers, resellers and institutions etc. To say, the industrial markets too could be segmented using the bases of the consumer market, but is addition there are some other variable bases used in segmenting the industrial customers. These include,

- The business customers could be segmented according their location  as this is an important factor to consider at times, mainly when shipping costs are concerned.

– The business customers can even be segmented according to the company size, industry , decision making unit, etc.

The industrial customers can also be segmented according to the patterns of purchase behaviour such as usage rate, buying status ( regular, first time buyer etc), or even the purchase procedure ( sealed bids, negotiations etc).

Having looked at  some of the   bases  in which the markets are segmented upon , it is important to know why  market segmentation is important in the first place. In other words, let us look at some of the reasons why organizations  consider segmenting the market.

One of the many reasons why organizations segment their markets is because it helps to understand the needs and wants of the customers better. In other words, by dividing the market into various subsets of consumers basically provides and insight to what type of consumers do require what goods and services.

 

Another reason for segmenting the market is to help  better target  and position the products of the organization to the exact people who are willing to buy the products or services, rather than trying to try and sell to the entire market. In other words, they are able to target the customers who they are able to satisfy using the proper marketing mix.

 

Market segmentation do paves way for a two way communication between the organization and potential buyer.

 

Market segmentation basically plays an important part in help maintaining an effective relationship with the customers. To say, because of segmenting the market into various subdivisions, the organizations get to produce goods and services to their selected targets thus satisfying them to their best possible capabilities which on the other hand eventually paves way for a effective long term relationship.

 

Another reason why organizations tend to segment the market is due to the fact that it helps to retain their existing consumers while attracting new customers. In other words, because of segmentation,  the organizations are able to provide the customers with value for money thus satisfying them through continuous improvement. As a result, this not only helps to retain the existing customers but also attracts new customers.

 

Resources are very limited and it is indeed vital to get the maximum use of the resources available to the organization. As a result, segmenting the market also provides a vital part when it comes to better use of the available resources. To say, this is because once the market is segmented then the organizations are able to use their resources to produce goods and services for their selected targets in order to satisfy their needs.

 

Market segmentation also helps to reduce the cost or expenses with regard to various marketing activities and  the  production itself. By producing exactly what the consumers are willing to buy it basically reduces wastage and also the costs related with advertising and promotion. Not only that but also paves way to increase the market share which will eventually increase profits.

It should be said that market segmentation is one of the important strategies that provides an organization with competitive advantage.   However, in spite of one or two disadvantages  such as not concentrating on the entire market at large but dividing the market into small subgroups of consumers, market segmentation contributes  to the success of the organizations in many ways such as helping to better understand the consumer needs and wants,  better target and position the products,  to retain existing customers and win new customers,  maintains effective relationships with the customers, reduce costs and expenses, increase market share and profits and better use of resources etc. Hence so, if the organizations are to face the turbulent, ever changing competitive environment then they obviously have to segment the market before hand, whether it may be consumer or industrial.

 

Using the Four Main Types of Direct Marketing Data Lists

Choosing the direct marketing data list best matched to a target audience is a sure fire way of building success into a marketing campaign. Our advice will ensure your direct marketing data selections are the right choice for ensuring maximum ROI from your campaigns.

Data lists fall into four main categories.  These can be broadly classified as: lifestyle consumer data, modelled consumer data, electoral roll consumer data and business data.

These categories hold information on individuals which range from basic details such as name, address, telephone number and email address to more sophisticated information such as lifestyle preferences and buying behaviour.

Lifestyle consumer data is information personally provided by consumers in response to specific questions. Because people have opted to give their information and provided answers to specific questions, the quality of the resulting data is ideal for targeting particular consumers or consumer groups.

Data attributes describing who they are, how they behave and their purchasing habits for particular products and services are of great use to marketing professionals in targeting the most suitable prospect for their offer.

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Lifestyle consumer data can also be tagged to an existing database to provide additional consumer intelligence for organisations.  Creating greater insight into customers for use in targeted direct marketing campaigns.

Examples of variables available for targeting consumer groups include; income and employment, insurance renewal dates, home ownership, date of birth, holiday destinations, income and employment, shopping preferences and pet ownership.

Modelled consumer data is created using census information and other transactional data to provide a model of consumer income, spending habits and other preferences to a certain geographic area.

Verifiable assumptions about income and lifestyle are assigned to postcodes that creates broadly applicable information to a type of area people live in.

A data list is generated by simply choosing data attributes that match your target consumers, which then supplies a suitable list of postcodes for contacting through a direct marketing campaign.

Though the data contained within a modelled database is not as in-depth as the personally focused lifestyle consumer data, modelled databases come into their own for large campaigns.  Each database can hold millions of entries and are ideal for campaigns with broad reach and wide appeal, especially for reaching all those consumers who have chosen not to opt-in to lifestyle surveys.

The Electoral Roll is one of the main sources for modelled data. This is the data supplied to local councils by residents and usually only consists of basic information such as name and address.

As the name implies, business data is information about businesses and the people that work there. Business data typically includes categories such as names, job titles, telephone numbers, type of business, email and web addresses as well as business addresses.

Above all when looking for data lists the key to success is using a reputable and professional list broker.

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Benefits of Mobile Marketing Solutions For Your Industry

Mobile marketing solutions can be excellent for your business. In today’s time and age, technological potentials never conclude. Business marketing used to be referring to billboards, television commercials, and magazine advertisements alone, now there is the internet, satellites, and believe it or not, mobile campaigns as well. This may be a very contemporary innovation that not many of you are acquainted with how this works. It’s quite reasonable to be hesitant when it comes to trying this method as you can never truly invest in something you’re not fully confident with. Well, here are various advantages of SMS text marketing that will surely get you convinced eventually.

1. Promote your products. Mobile marketing solutions allow you to promote your product via SMS. How manageable is that? With just a trifling clicks on your cell phone, you can send out your advertising campaigns to considerable consumers in an instant. Of course, you need to have the corresponding government authorizations to do that, but the effect is so much greater than the means. You don’t need to prepare your billboards, television commercials, and printed flyers anymore. You just need to have a precise target group of consumers who will frequently receive messages from you. You can also coordinate with an advertising company that will do this work for you.

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2. Faster transactions. At that instant, when your consumers receive the advertisements on their phones, they could effortlessly make up their minds as to whether they should act upon it or not. One of the productive mobile marketing solutions used by advertisers is by targeting their consumers based on station. If your product, for example, is located on Nameless Street, the target consumers will include residents on that street plus visitors whose mobile numbers are particularized on the GPS, and with a quick reply, transactions can right away take place.

3. Affordable. This variety of marketing costs greatly lesser than its traditional counterparts. In SMS advertising, you don’t need to spend millions of money, unless you choose to have a worldwide campaign, of course. Television advertising, magazine covers, and billboards all necessitate large funds. The effectiveness of these methods in soliciting revenue is definite doubtlessly, but so are mobile campaigns. Success at a lower price. What more can you ask for? If you have funds to spare, then you can use different other types of advertising along with your mobile marketing solutions.

4. To provide customer support. Inquiries are just a text away with this kind of marketing. You can provide hotline numbers for your clients, but they would always choose the convenience of sending a text message. You can also set-up customer support via SMS. If you have available answers for their questions, then you can send an answer instantly. A quick and easy problem-solving means. If questions require great speculation, however, then you can refer them to your hotline numbers so they can explain in detail what the problem is and they get the entire solution to their problems.

Mobile marketing solutions are amazing breakthroughs in the world of advertising. Marketing has never been this easy yet. Many years from now, newer and quicker processes will be discovered that can either enhance existing ones or totally eradicate them due to obsoleteness, but mobile marketing is surely here to stay for a longer time.

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Enhancing The Opportunity For Brand Reputation Through Internet Marketing Consulting

Over time, most corporations begin to grow a form of brand reputation, that can either prove very beneficial to assist in attaining sales results or can prove dangerous which will result in the failure of a firm. In the online environment, brand reputation plays a very critical role in the success of your Internet pursuit and can usually be helped when you take advantage of a resource, such as Internet marketing consulting. When looking into the numerous advantages which are developed with using these services, seek to make the most of possibilities like providing customer confidence, building brand recognition, boosting sales, and generating repeat business.

Providing Consumer Confidence

The first area of opportunity that is created with possessing a strong brand reputation is found with offering consumers with a greater level of confidence. The confidence level of a consumer will normally determine whether a person chooses to pursue an investment or postpone their purchase for a later time. The online environment relies on speed in purchase possibilities and a wide number of customers who decide to postpone a purchase for a later time, normally utilizes a different firm or never returns to purchase. With the aid of Internet marketing Chicago, you’ll be in a position to increase consumer confidence, with the help of the building of brand reputation.

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Building Brand Recognition

A highly beneficial result of possessing strength within your brand reputation is found with the opening for building brand recognition. The online environment is flooded with millions of websites and a large quantity of competitors offering the same goods or services as your business. through the opportunities of brand recognition established by Internet marketing consulting, you’ll be able to have consumers identify your business and make purchases when compared to a business they may be unfamiliar with.

Increasing Sales

The combination of using brand recognition, consumer confidence, and a strong brand reputation, presents you with the greatest opportunity of increasing sales in the online environment. Each of these factors can drastically impact the decision-making process related to each and every online patron, seeking to make an investment into a variety of goods or services.

Generating Repeat Business

The last opportunity that normally offers the greatest benefit, when pursuing the Internet marketing consulting outcome of establishing brand reputation management, can be available with generating repeat business. Each market carries a very limited number of customers, whether it is a hundred individuals or a hundred thousand individuals. By establishing a strong reputation, consumers will decide to return to your high quality business and these repeat sales indicate your finest opportunity for generating revenue.

These four advantages can prove highly beneficial to any corporation seeking to embrace the one of a kind opportunities that are accessible with developing quality brand reputation, within the online environment.

www.joelwarady.com – The Joel Warady Group has 27 years of experience in packaged goods marketing, and product development. In this video Joel discusses the power of consumer generated media.

The Importance of Focus Groups and Their Alternatives To Consumer Product Marketers and Entrepreneurs

by: Geoff Ficke

The Importance of Focus Groups and Their Alternatives To Consumer Product Marketers and Entrepreneurs

My Consumer Product Development and Marketing Consulting firm offers a variety of services to clients. One that we frequently utilize, and is often misunderstood is the creation and management of Focus Groups. What is a Focus Group? What is the real purpose of a Focus Group? How much do they cost to organize? Can a novice Marketer organize a worthwhile Focus Group?

There are numerous evaluation metrics that Marketing professionals utilize to measure Focus Group results. A Focus Group should ideally consist of randomly chosen, anonymous participants that are selected for participation in the class because they have proven a need for the product being tested. Typically we utilize a small call-to-action newspaper advertisement to announce the formation of a Focus Group, the purpose of the Focus Group and how to become a class member. 

As prospective participants phone to seek information and express interest, we ask pre-written questions to screen for suitability. If we are running a Focus Group on a Hair Care product we will not need the participation of bald people. We create an ideal demographic profile to be utilized when screening potential participants in the class. If the phone interview is positive, we invite the caller to meet at a specified time and place. 

The initial meeting provides a final opportunity to confirm that the applicant is a suitable class participant. There are always a small percentage of prospects that simply are not right for inclusion and the reasons run the gamut. This screening is more art than science. 

The Focus Group managers will be seeking a certain class size to confirm product assumptions. Once that population is in hand the actual test can begin. Remember, there will always be a number of members of the starting class that will drop participation for various reasons so allow for this reality when assembling the group.

The Questionnaire is crucial to managing a successful Focus Group. It should serve to guide the class to provide accurate, truthful answers about their experience with the subject product. The document should contain a variety of questions that may address product features and benefits, competition, shopping channels, pricing, likes/dislikes, etc. If the Focus Group will require product usage over time, say 30 days, there will be an entry and exit Questionnaire. 

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After the initial questionnaire is completed the product is demonstrated and usage training provided if required. If we are managing a Focus Group on a Skin Care Regimen, and the program has unique application features, we will train the participants in a rote manner. Remember, any attempt to pre-ordain the outcome will invalidate the goal of achieving an unbiased product evaluation. After training and product application, the class members are given the necessary supply of the product being tested for home usage.

The product sample itself should be as unadorned as possible. If we are studying the play features of a Board Game, obviously the game elements must be complete. For most consumable consumer products we will provide samples in plain lab sample bottles.

When the Focus Group chronology has been completed, and the exit interviews and final questionnaires collated, we analyze the results. Our questionnaires typically ask for a waiver so that we may use positive comments from class participants as testimonials in Sales Collateral, Point-of-Purchase Display, Publicity Releases and Web-sites.

What is the purpose of the Focus Group? There are courses and books written on this subject. Simply put, Focus Group managers are seeking the affirmation—OR—the disavowal of the assumptions that the product concept is built upon. The reality of proceeding to launch a Consumer Product with either faulty or overly affirmative consumer responses can, and usually does, lead to product failure in the marketplace. 

What will a Focus Group cost? There are testing firms that conduct Focus groups on a grand scale for multi-national companies. These tests can run well into six figures. Depending on the size of the class, the intricacy of the product, availability of class space, advertising costs in a market and whether an incentive gift is given to participants the cost of a test can vary from 00 up. 

Can a self-marketer manage a Focus group? Yes, but only if they can be truly agnostic in assembling the class and the test structure. This is usually too difficult for the originator of a product or concept as they are too emotionally tied to their idea. 

There is a good bit of mythology about Focus Groups and their outcomes. Most major Consumer Product manufacturers utilize Focus Groups before spending millions of dollars to perfect, Market, Brand, promote and launch a new item. Many of these products still fail or enjoy a short shelf life. Some of these failures are titanic.

Are there alternatives to Focus Group testing? Yes! I self-marketed products for many years without ever utilizing a Focus Group. Sam Walton, Charles Revson, Bill Gates, Henry Ford, Robert Loewy, Herbert Lay and many other entrepreneurial giants utilized only their instincts to create novel, ground breaking Consumer Products and services. An informal group of trusted friends, family members and co-workers, if asked the right questions, can obviate the need for a formal Focus Group.

A successful Focus Group can often be an important underwriting element for obtaining Venture Capital investment. A well written Business Plan with strong Financials, an exciting Executive Summary, strong Branding and customized Marketing Strategy is absolutely essential when seeking investors. The inclusion of a properly organized Focus Group report with a positive result in the Exhibits section is often the cherry on the investment sundae.

If there are any Entrepreneurs, Inventors or small businesses wishing to attempt to organize a self-managed Focus Group please contact us at www.DuquesaMarketing.com. We will be glad to forward a sample questionnaire that they can utilize as a template to customize as needed for their project.

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Importance Of Advertising Agencies

Every business house needs a good advertising agency to be a success in the market. A good advertising is a key element for a successful business. For quality advertisement, taking services of a well known advertising agency is very important. You can say that advertisements are one of the most important marketing tools in the market nowadays. Because of rising demand of advertisements for developing business, there has been a significant growth in the number of media advertising agencies. There are many advertising agencies in the market today and each of them promises to give you quality services. You should select an advertising agency for your business very carefully because advertising means a lot for successful running of your business.

If you plan to get great results, then it’s always advisable to go in for a reputed and experienced advertising agency that is in business for quite some time. Because of their experience in the world of advertising, they will give you good services when it comes to creating eye catching and interesting advertisements for your business house. There are many ways to choose a good advertising agency. Word of mouth is one of the best options to gather information about advertising agencies. Ask your friends and relatives who are already employed services of advertising agencies. Ask them what quality of services they are getting and are they satisfied with the results? Listen to them carefully, for this will help you decide as to which advertising agency’s services you can go in for.

Browsing through internet is also a very good option. You can read reviews of various advertising agencies, visit websites of various advertising agencies, check them and then accordingly opt for the best advertising agency whose services are in accordance with your budget. Many a times there is a public relations team in an advertising agency which helps business house build goodwill in the market and also provide information about the business house and their products and services in the market. In these advertising agencies, there are employees who work for different departments. These employees work in the best possible manner so that the advertising campaign for your business house is a success in the market. The medium of advertising is based mostly on the product and the target audience.

Nowadays the popularity of internet advertising is growing very fast and many companies give preferences to this mode of advertisement. For promoting technical things services of a technology advertising is taken mainly because they are well versed with advertising related to technical products. Business houses especially small and medium sized business houses relies on the most of advertising because it is the main tool to make their presence felt in the market. You should always choose an advertising agency that suits your needs and budget aptly so that it can yield maximum gain for you. You should never go overboard while selecting an advertising agency for you. So subscribe to the services of good advertising agencies and make your company grow in the market.

Join us on Oct 14th, 2012 for the discussion. www.etaevent.com A short film about what the future of advertising might look like. Produced by Saatchi & Saatchi Canada, Tool, Pirate, Rooster and Lunch. Join us at FITC Toronto http and get a 10% discount with code: lastagency
Video Rating: 4 / 5

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Understanding Consumer Behaviour in Markets

 

The failure or success in any business is dependable upon the behaviour of the end-user or consumer who finally uses the product or any services. This is again vital not only to the producer of the final goods but also the intermediaries who play a major role in carrying the product from initial level to the final level i.e. from the manufacturer to the consumer. Of course the final player in the channel is important to a consumer but the business of all the intermediaries gets affected.

It is the behaviour of the consumer which impacts their decision to purchase or not purchase the product. Depending on their decision and their usage, an organization decides which products to manufacture and to continue. The positioning of the product is dependant on the consumption of the product and this behaviour of consumers may be related to any kind of products or services. The consumer behaviour also reflects the trends in the national growth and economy.

The study by Engel has revealed certain basic facts based on which he designed four models to ascertain consumer behaviour.

It was found out in the study that the purchases made by consumers are mainly to satiate their demands and to solve the underlying problem. If a consumer purchases a product in order to fulfill his basic need, it can be said the purchase was necessity-driven and it can be analyzed from this aspect as to what motivates or drives a consumer to purchase a product. If a consumer does an impulse purchase, he does it without any preconceived notion or well-thought over buying of a product. The product in this case seems to be so attractive or beneficial to a consumer that he immediately buys the product. So, this makes us understand that a product should have certain unique attributes to lure the customer. In some of the product categories, there are a number of options to choose from and it becomes difficult for the customer to reach a certain decision. Also it is difficult for the seller to sell his product as he needs to convince a lot by paying thrust on his product as against his competitors.

Now, let us understand how the behaviour of consumer affects a marketer or what are the benefits of understanding consumer behaviour.

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Above all, the study of consumer behaviour helps a marketer to identify or define the basic P’s of marketing and the marketing mix.

Advantages and Disadvantages of Direct Marketing

The term marketing implies the single goal of profit. It is categorized into two, direct marketing and indirect marketing and there is a significant line of difference between the two. Direct marketing is basically business from manufacturer to consumer without the involvement of middlemen, whoever it is. This is generally done by mailing the consumer or contacting him directly, so he can know about the products. The use of media advertisements is very limited and whatever little use is made includes only the demonstration of their products with call back numbers. Direct marketing is a boon and a bane, both in some respects:

Advantages:
- Direct marketing involves direct business. So it is cost beneficial for consumers, as there is no price hike due to wholesalers or retailers.
- Marketing executives can state certainly of the exact response to their products.
- The profit or loss can be more accurately judged.

Disadvantages:
- Sometimes, direct mailing offends the customers and many do not endorse it as they say it inhibits their private lives.

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But most marketing managers are in support of this kind of business. The various forms in which direct business is made are:

- Direct mailing: Here, paper mails are sent to the selected groups of people, who likely to give positive response e.g. the paper mails of latest food processor is sent to all homes where house wives are resident so that immediate response is seen. Also CDs can be used as demonstrating media.

- Email Marketing: Here, emails are sent to all the selected customer categories with repeated intervals of time. But most of these are put into trash and spams. So the effectiveness of this form cannot be predicted.

- Telemarketing: In telemarketing, calls are made directly to the consumers and the concerned product is advertised. People sit at call centers to sell products on behalf of their clients. But this form of direct business is quite unpopular and most people oppose the uninvited calls. It was initially made illegal but later on new laws were re-enforced and calls are now made only to those who don’t mind them.

- Voicemail: Telemarketing created a lot of consumer opposition and consumers would abuse the ones advertising on the phones. In order to avoid this, voicemail marketing was introduced, wherein; the entire advertisement is digitally recorded and presented.

- Use of coupons: Coupons are attached to direct mails and sent to the consumers. These generally advertise and give cost benefit to the consumers. So they avail these coupons and respond fast.

- Television marketing: Advertisements are given on the television and demos are with toll-free call back numbers or certain websites for the consumer to get in touch with the manufacturers.

- Broadcast faxing: This is the least popular form of direct marketing. The ads are directly faxed to the consumers.

Direct marketing can thus become successful only if the entanglements with the consumer are good. It can be B2B or B2C. It measures exact consumer response.

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Basic Internet Marketing Concepts

Since internet marketing theory has come to practice, every industry is affected dramatically. Some opinions may approve the fact that internet marketing has turned the marketing system upside down. But is it the true story of current marketing strategy? Actually, the improvement of marketing tool does not directly divert the basic marketing theory. It only eases and reforms the complicated steps to be more convincible and practical in long term.

Based on the marketing concept, there are 5 main elements to circle the market. For your inference, the first sole that derives the rest is known as market. But what exactly is market? Market is basically your current consumers and your potential clients in certain area. There is also another explanation for market which is known as the place where transactions and trades are taken place. From the original form, market may be a certain geographical location. Now technology has led it into the e-commerce platform. All the transaction will be carried out on the internet. It has not changed the market itself but only the location of market. Market will reflect the needs and demands of consumers. In certain area, consumers demand could be different, for instance, Muslim countries may not have a high consumption of pork. Therefore, the number of supplier could be little as well.

When it comes to the e-market, it will take companies a lot less steps to define consumers demand. As companies tend to group their products and customers due to many factors or interests like age, sex, hobby, color and style, it could be easier for marketers to discover consumer’s demands. Products of company are based on the consumer’s desire. If demands are easier to find out by using internet marketing, products will enjoy the same advantages as well. Both tangible and intangible products can be magically reached out through internet. Furthermore, consumers can choose the product according to their desire topics. It is considered more convenient than promoting each product to each unique market.

From consumer’s point of view, the cost of a product is the main concern. Compare to normal face to face purchases, e-buy has offer a lot of discount and privilege to attract consumers. Internet marketing makes actual performance better than expectation. Finally, it is also generate the smooth exchange and transactions. Customers simply click on the product they want to purchase with their credit card info. They can immediately enjoy the service. What is greater than a fast and sufficient performance?

The twisted idea of internet marketing actually changes the whole concept is totally flawed. Internet marketing should be applied to every industry in order to speed up the services.

Consumer Marketing Strategies: Sizing Your Market With Direct Mail Sites

Think of how much time and energy it would take to find out exactly how many people in your city or region have a passion for sports and fitness. Or how many of those people are also pet owners, and with household incomes between ,000 and 0,000 a year.

This kind of information is very valuable, and that’s why direct mail websites want you to pay for targeted lists such as the one detailed above. But, what most people don’t realize is that simply obtaining the number of people in a given area who fit a certain criteria is also extremely valuable, whether you choose to purchase their contact information or not.

In order to sell you a list, direct mail sites have to tell you the number of leads that will be included on that list. This means these sites can act, in essence, as a free online resource for savvy entrepreneurs looking to size their target market.

There are many ways that sizing a target market can help entrepreneurs make informed business decisions, some of which have been discussed in previous Jane out of the Box articles. This article will focus specifically on how to use information obtainable from direct mail sites such as InfoUSA and MelissaData to minimize risk in terms of new ventures and expansion.

Say you’re contemplating starting a new business. You have a concept for an upscale climbing gym in a town where you know there’s no shortage of rock-climbing and fitness enthusiasts—but do enough of them make enough money to afford your proposed membership rates? You might want to check out the stats on one of the direct mail sites listed above, under the heading of Consumer Lists, creating a list based on household income ,000+ and using ‘health/diet/fitness’ as a category under a tab that represents Hobbies and Interests/Lifestyle Indicators. When you visit MelissaData, for instance, you will find a “Lookup” tab, including a myriad of free lookups to represent certain data, perhaps even the specific target you are seeking. The number you get will give you a good idea of whether there are enough people in your target demographic to get your new business off the ground.

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Or, say you own a pet-grooming business with a solid clientele, but have seen flat profits over the last few years. Your customers are always asking you if you know of a good all-natural dog biscuit, so you’ve considered expanding your business by creating your own dog treats, in-house. You’ve even had the idea of selling them at other local businesses around town.

Before you sink the time and resources into developing this new business venture, you might want to use InfoUSA to discover how many people in your area have Hobbies and Interests in both ‘health/diet/fitness’ and ‘pets/animals.’ After all, this is your target market. Most other pet-owners will just continue to purchase their dog-biscuits at the grocery store.

When you find your results, ask yourself: Is this potential market big enough to justify the funds I would need to float this new business venture? (It makes sense to find out before you move forward—especially if funds are already somewhat tight.)

Let’s say you own a nightclub that’s doing well in a certain metropolitan area, and you’re looking to expand. Before you make a decision on where to locate your next club, it would probably make sense to do a basic demographic search on singles between the ages of 21 and 40 in each of the areas you’re considering. The answers you get may confirm your intuition, and they may not. Either way, you’ll have the information you need to move forward with seeking the right location to support the people in a given demographic to make your next nightclub equally successful as your first.

There are many more ways you can use direct mail searches to determine the size of your potential market. Once you become familiar with search parameters on each site and put them to work in whatever way best serves your needs, you can continue putting that information to use in making key business decisions.

And, if the time comes when you want to move forward with direct marking to your target demographic, either via phone or direct mail, go ahead and purchase that list from the direct mail site of your choice. It’s a great way to thank them for providing such great information, free of charge!

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