Services Marketing Continued: Rating Parameters
Part 2
5. It's a deep segment
The ideal segment is both tight and deep. By this, I mean that you can clearly define it and there are a lot of clients within the segment. For example, if you are a computer consultant who helps companies that publish spreadsheet software, since there are only a half dozen or so spreadsheets with any reasonable amount of market share, you could be in real trouble. It just isn't a deep enough market.
Here's an effective way to evaluate the depth of a market segment. Could your business flourish if you won just 5% of the total market as clients? If so, it's a deep enough market. If not, you should probably look for a deeper segment.
6. It's an easily reachable segment
In order to get your marketing message to the right people, you need easily accessible and affordable ways to reach them. Are there mailing lists for this segment? Are they easy and inexpensive to rent for direct mailings?
Does this segment have its own trade journals? If so, they will be reasonably easy and inexpensive to reach. But if you have to advertise in national magazines and big city newspapers, it can be quite expensive.
How about the Internet? Are their e-zines and discussions lists where you can readily access your segment?
7. You have or can easily establish credibility with
this segment
Credibility is a key factor in making a sale. That's why it's always far easier and less expensive to make repeat sales to existing clients – your credibility with them is extremely high.
Credibility can be gained in many ways. Positive press coverage, past buying history, speaking at seminars and conventions, and excellent client testimonials and case studies are just some of the ways that I'll cover in complete detail throughout this program.
Joint ventures, where you "borrow" someone else's credibility to sell your service to their clients or customers, are another excellent way to build credibility. I'll cover this as well later in the program.
8. It is a geographically desirable segment
Do the geographical requirements of this segment work for you? The vast majority of high-tech companies are in California. If you live in Ohio and don't like to travel, you're going to have a tough time selling your service to these companies.
If you plan to work at an international level, you'll probably need an office and staff in another part of the world as well as a home office. That can be an expensive proposition.
Services Marketing Pt 2 | 