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Large corporations attempt to receive as many possible visitors as they can. Most of their products, marketing strategies, and services are geared towards the medium of public desires. Small businesses have a hard time competing against these larger companies because they do not have the resources, the facilities, or the name recognition that the larger companies do. Instead of throwing up your hands in disgust a business owner should consider the possibilities of using market segments in their business. Segmentization according to the European professor Thorsten Grunsson “is the creative process employed to bring a segment to life, for staff who handle customers, and for the customers themselves so that they can help company manage them..” Segmentization is then the focus on certain demographics among consumers but also the process by which a company uses to service this segment. Think about your customers and the demographics of each group. What is your most profitable group? Which is the group that constitutes the majority of your customers? Is there anything special about these groups? Would it be easy to draw more members from any of these groups? Which group has the most return visitors. For example, if your small accounting firm attracts about 60% of its visitors from the under 40 years of age high-tech professionals and they constitute 80% of your profit you may be wise to focus on their needs. These needs may be faster service, specialized service, electronic e-filing, online accounting, small business accounting, etc. This particular group may have needs that are different from other groups. A small business, at least when compared to larger companies, should consider what they do well. On a piece of paper list your weaknesses and your strengths. Look over each of these and determine what you can do well, with the least amount of energy and the most amount of profit. Once you have chosen your top choices you can determine what your competitive edge is. Through this example you have found that your most profitable segment is under the age of 40 years and works in the local high-tech field. You have further determined that these professionals would like to complete their taxes online, like an elegant office, need excellent customer service, and have a need to grow assets. You have likewise determined that you can provide this specialized online service and can update your office design to appeal to these high-tech professionals who would like to see you face-to-face. After making a few calls you have made a deal with a local investment firm to offer the option of investing customers’ tax returns in a no-hassle basis. Even better you receive a percentage of the investment costs as a referral fee and no other accounting firm in the area is trying to do the same thing as you. Now that your small business is focused on the needs and desires of your most profitable group you can start figuring out the best and most efficient way of attracting these customers. With a little analysis you figure out there are unrelated businesses in the area also trying to attract these under forty-year-olds. These places include restaurants, cocktail lounges, fitness centers, and professional associates. By making agreement with these places to advertise on their premises in return for a percentage of the profits as well as contacting workplaces that employ such professionals your customer space explodes. Simply thinking about what your business does well and which customers are more profitable to market too you have begun to increase your profits and reduce your expenses. In today’s world niche is the new buzzword. Murad Ali is a three time business author, a Ph.d. candidate, and a human resource manager. http://www.thenewbusinessworld.blogspot.com
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