Will the market add value its business?
Worth of a business depends upon the prospects available for it in the market. If a venture actually captures sufficient buyers, it would mean that it has worth. This largely depends on the fact that, whether the early buyers are comfortable using the product offered by the business.
Will its business be able to approach multiple customers?
Surveying and customer feedback enables the business to ensure that has it approached the broader market or not. A feedback from a small group of possible consumers would authenticate the fact. Thus it is advised by renowned market research personnel all over world to market research companies in India and everywhere else to initially work with small group of likely purchasers before taking a step ahead towards a larger consumer base.
Will its company possibly link itself with kindred industries?
A start up is launched with single range of product or service at initial stages with an aim to eventually diversify. Therefore, a proper scrutiny should be performed finally deciding upon a product range with an aim of diversification in analogous industries.
Segmentation in the marketplace for scrutinizing possible buyers from a large consumer base is a key to product endorsement. Before segmenting following key criteria are ideal and worthwhile to be considered:
- Segment must be measureable.
- It ought to be large enough to prove itself profitable for the venture.
- Potent marketing activities should be an enabling act for the entrepreneur to reach its potential buyers.
- Entrepreneurs' advertising efforts must be eliciting stimulus to translate potential customers into those who are actually going to purchase the product.
- Be certain about, whether the customers in the target segment have a preference for like products or not.
- Knowing that customers from different segment possess different quality preferences is important.
- Endorsement should be efficacious to gain positive response.
A coherent approach to segmentation involves dividing the wide spread consumer base according to:
Imagine a business is about manufacturing woolens. Then the target would be selling to a cluster of potential purchasers in the frigid regions. Targeting geographically means aiming to approach buyers, globally, nationally, on the basis of region or locally.
A buyer's will to procure a product also depends upon its age, income, ethnicity, religion, family life cycle and so on. It will help business personnel to target strategies for reaching the specific group.
Segmentation is based on the knowledge of, user rate, & response to the product, occasion and degree of loyalty.
Activities, interests, and opinions of consumers are thoroughly studied. Factors like similar attitude, value and lifestyle are also considered.
5. Product related benefits:
Relationship with the product is defined based on the benefits perceived and sought by the buyers.