🎯 New market segments: how to increase sales several times
The market is a heterogeneous structure, it consists of elements. The elements of the market are segments and niches. If we take the analogy of AI, then segments are market molecules, and niches are market atoms. Niches form segments, just as atoms form molecules. In turn, segments form the market itself. At the same time, the market has the ability to develop – it can have new segments and new niches. To create new market segments is to get new opportunities for market players.
New opportunities here, first of all, consist in the fact that if you create a new segment and enter it, you can increase sales volumes. In some cases, sales volumes can be increased significantly, because sometimes new segments can be significantly larger than all the other segments combined. For this reason, it is very important to know how new market segments are formed and to engage in their creation. But for this, first of all, you need to thoroughly understand the market itself, understand what it is.
The best way to understand what a market is is through noo marketing. Noo marketing clearly tells us that a market is a collection of people in whom an idea corresponding to a specific product has been implanted. If we are talking about cars, then this is the idea of a car. If we are talking about mobile phones, then this is the idea of a mobile phone. In other words, the market, just like everything else, is formed from ideas, it is at its core and in order to be a successful market player, you need to start from the idea, not from the product.
New market segments as new opportunities
If you base your business on an idea, you will work in the market for a long time, if on a product, then as soon as the idea underlying the market for which this product is needed is exhausted, you simply will not know what to do next. Of course, by inertia, attempts will be made to continue to hold on to the market to which you are accustomed, but they will be unsuccessful, because it will be an empty market without consumers. There are many examples of successful businessmen who suddenly found themselves at a broken trough. In fact, there is nothing unexpected in their collapse. The idea has exhausted itself and the market formed around this idea has disappeared.
Nokia believed that a smartphone and a mobile phone are the same thingThe most striking example is the example of Nokia, which recently announced that it was leaving the mobile phone market, where it had been the leader for a long time. The mobile phone market is based on the idea of ”always in touch”. To implement this idea, a mobile phone was developed. It was not tied to a specific place, like a landline phone, and for this reason it allowed its owners to always be in touch. The best object that allowed you to always be in touch, or in other words, a mobile phone, was made by Nokia.
This idea was brought to perfection, became absolute, which means that it was exhausted. There was nothing further to improve. This meant that the mobile phone market was finished. At this time, Apple created a new market based on the idea of ”eliminating the information inequality” and created a device to implement this idea called a smartphone. Nokia considered that a smartphone and a mobile phone are the same thing. But as it turned out, they are not the same thing, if only because the markets for them are different.
Create a segment and save the business
Nokia continued to think that it was making mobile phones for the mobile phone market, and it got burned because it was offering mobile phones on the smartphone market. People gradually figured out that Nokia devices were not the embodiment of the idea of ”eliminating the information inequality” and its sales began to decline. This proves that it is very easy to work with an idea, not with a product.
In other words, the Chinese cannot hold the market because they base their activities on the product, not the market. For example, we can also take Chinese manufacturers who use original marketing. It consists of simply copying different products and then, offering them cheaper than the original, selling them quite successfully. All this happens until the idea, the products for which they produce, exhausts itself. As soon as someone introduces a new idea, sales of Chinese products fall almost to zero and the Chinese can do nothing until they copy the product for the new idea.
In other words, the Chinese cannot hold the market because they base their activities on the product, not the market. If they based their activities on the market, on the idea, they could know in what direction the idea began to develop and offer a product for it themselves, without resorting to copying. They cannot do this and are waiting for those who understand this issue in order to copy their product. They are waiting for those who know how to create new markets or at least new market segments.
How new market segments are created
We have sorted out the market, now we will sort out the market segments and how new market segments are formed. The process of forming new market segments is based on one very important property of ideas. The essence of this property is that the idea introduced into the consumer can interact with other ideas. As a result of the interaction, a new idea is formed or, in other words, a new market segment.
As a result, as you might guess, a new market niche will be formed. Accordingly, a similar product is needed for it, but not the same as for the idea on the basis of which the market was initially formed. This means that a new market segment is formed as a result of the interaction of a market idea with another idea. In turn, the idea underlying the segment can also interact with some idea.
As a result, as you might guess, a new market niche will be created. The idea of a market and the idea of a market segment can interact with a number of ideas that suit them. As a result, a corresponding number of market segments or niches will be created. They need different, although similar, products. Creating new ones and segments is a soft and unnoticeable way to organize customer management.
The more segments, the more earnings
As you can see, creating new market segments is not difficult in principle, if difficulties do arise, a marketing consultant will help you solve them. First of all, you need to determine the basic idea that underlies a particular market. Then you need to track what other ideas it interacted with and what the result was. This will allow us to find out the existing market segments so as not to accidentally create a segment that already exists.
In this case, you can even predict how many consumers will be in the new segment. Then you need to select a suitable idea that can be integrated with the market idea and carry out the integration. After that, it remains to introduce the new idea into the minds of potential consumers and follow the rules of marketing. In this case, you can even predict how many consumers will be in the new segment. To do this, you need to find out how many people were introduced to the idea that we integrated with the market idea.
After creating a segment, we only need to create a suitable product, preferably to the maximum extent, and through communication with consumers, position the product in the resulting segment. Well, and then we will have to do other work with the market and segments. In order for this work to be effective, it is recommended to read articles on marketing.