The New Market Segmentation

If you're trying to segment your market in the traditional way, what you may be looking for would be groups of consumers sorted out in such a way that a certain likeness exists within each group, and a difference exists between them. The variable determining the meaningful likeness or difference between those groups would be the segmentation variable. A trivial segmentation variable, just for the sake of demonstration, would be hair color. However, after having segmented the customers into groups, it is reasonable to assume that you would expect to do something with it. Let's say that you have decided to target a certain segment. You would probably want to do some marketing activities that will appeal to this segment, or else, to communicate some kind of enticing message to it. Sometimes, the segmentation variable could suffice for the purpose, ("listen to me, all you red-heads out there"). In most cases (for instance, the segment of those who consume beer only out side their home), you would have to characterize your segment before you could address them. In other words, you would have to define what describes the customers in that segment, beyond your segmentation variable, and also, what makes them different from consumers in other market segments. The characterization of your segment is a task that is not the same as defining your segment. It is a distinct next step. But now, if you can be truly sincere with yourself, I'm convinced that you have already found out that it does not work.

In the distant past, and in traditional societies (sectarian) the people's behavioral patterns were pretty much modeled by their affiliation to a certain gender, a nationality/tribe/race, a certain religion, a social/economic status, a profession, and an age group, much more than today, anyway. There were clear clusters of elements pertaining to appearance, general behavior and particularly consumption. Then, back in those days, if you knew one element of a particular cluster, you could quite easily guess the others. But all this has changed. As people are becoming gradually more individualistic, and as possibilities have multiplied, people have become less and less definable as types.


First of all, let's face it, our consumer refuses almost completely to abide by segments that create homogeneous groups (heterogeneous from others) according to demographic, socio-economic variables, or even according to lifestyle. Our customer will not behave and consume under our stereotypical forecasts. He is a "collector", and therefore I call him the "eclectic consumer". He likes the old (Frank Sinatra), as well as the new (fast internet), the expensive (BMW) as well as the economical (hardware do-it-yourself stores), the international (Giorgio Armani) as well as the locally rooted (folk dancing), the epicure (a double Makiato) as well as the crude (football).
The eclectic consumer has become frenzied by the abundance of opportunities, and is now addicted to the concept. He does not want to miss anything and so, his life is multiplex, yet laden.

So, how do you market to the eclectic customer who is afraid of missing out? One central insight for the re-designing of market segmentation is as follows: the eclectic consumer, who will not miss anything, "connects" to different, even contradictory, motivations he has at different times. Because these motivations are not necessarily compatible with one another, the eclectic consumer is constantly in motion from one stereotype to another, from one lifestyle to another.

In order to adapt to this consumer reality, our segmentation (and subsequently, our products and services, our advertising and so on) should be formulated not according to groups of people, but according to motivations and uses. Note that when I refer to "uses" I mean, among other things, psychological uses, such as mood control, self-esteem enhancement, and fantasy support, and I also mean social uses, such as signaling others things like group affiliation, specific atmospheres, or impression control. The new method is called "Contextual Segmentation": segmentation according to contexts of purchasing or using/consuming.

Note that this constitutes a formation of a real revolution in segmentation thinking. Some of you would probably comment that this is not so much about segmentation as it is about consumer behavior analysis. Well, let me answer you. Let us recall the original purpose of market segmentation. It is the furcation of the market into smaller units enabling us to focus our marketing/branding/advertising activities, and to achieve differentiation, so that we could win advantages we could not get when working with the entire market. The search for small consumer groups has evidently stopped delivering results. However, the pursuit after groups of "purchases/consumptions" rather than of people, could offer new horizons.

Let us sharpen things a little. According to the old segmentation, each group is characterized by a need/preference/motivation. The new approach preserves this concept. Yet, in the new reality, and according to the new approach, the motivation is no longer common within a defined consumer group. A "segment" is now a group of "purchases/consumptions" qualified by a certain context of purchasing or consuming a product plus a specific motivation.

When we segment according to this approach, we analyze consumer behavior; we identify the various contexts of product consumption, and the different motivations that characterize consumers who experience those contexts. The new relevant segments could consist of certain moods (such as the "I'm going to teach that husband of mine a lesson he's never going to forget" segment), certain social situations (such as the "Wow, I haven't seen YOU in a long time" segment), all according to what is relevant to that specific product category. Note that when we meet a given purchasing context (a dinner at a restaurant) there are varied consumer motivations that exist ("tonight we're going out solo, no kids", versus "we're celebrating grandpa's birthday"), and they would be considered different market segments. A specific consumer is likely to participate in one segment, few segments, or no segment. Nevertheless, much like the old segmentation, every segment accounts for a share of our sales, and we can do our profitability calculations accordingly.

According to Contextual Segmentation, then, our marketing activities, at all levels, should be aimed towards a context of purchasing/consumption plus a certain motivation, and not towards groups of consumers.

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Branding - do you know who you are?

There is such a lot of talk going around about branding, but what exactly is your brand and how do you use it to help you reach more people and market your products or services?

Your brand is the core of your marketing, the central theme around your products and services.

Your brand is not your Logo or your Company Name, unless of course you are Microsoft or the Yellow Pages online directory.

For people to come and hire you, or buy from you in droves, your brand needs to be crystal clear, attractive, exciting and powerful. In fact your brand needs to be powerful enough to rouse your customers into action, and at the same time it needs to actively express you, what you're about and your uniqueness.

Once you're sure of your brand you also gain a tangible and easy way of talking to people about what you do. It makes it so much easier to do your marketing when you have it clear in your mind what it is you're selling in the first place.

When you're creating your brand you are creating a memorable marketing message that will inspire people to take action and choose you over your competitors.
Here are five useful tips to help you find your brand:

Your Brand Tip 1
Your brand is the core of what you do. What feelings or emotions does your business inspire in you and in your customers? Did you know that peoples' decision to buy is based on emotions, not facts?

Your Brand Tip 2
Think about how you present yourself, not just on your website but when people see you, talk to you on the phone, or read your email. Is your marketing consistently saying what you want it to? Are people getting confusing messages from you, or is it clear from the start what you do?

Your Brand Tip 3
Think like your potential customer, try to get inside their head and see your products or services from their point of view. How do they experience what you do, and how does it make them feel?

Your Brand Tip 4
What is it you do that makes you stand out from the crowd? If you don't think you do, then you need to think of a way that you can, because your brand should be somehow different from everyone else's, its not enough to be just the same as others but better.

Your Brand Tip 5
What are your best abilities, do you know your greatest strengths? Choose an unbiased person, who knows you well, to help you decide what your top attributes are; your brand should be based around your unique strengths and abilities.

Ultimately, creating a strong, memorable, compelling and meaningful brand is essential for successful marketing, and something you can do with a bit of thought, and may be a bit of help from your (unbiased) friends.

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Optimum utilisation of Manual Traffic Exchanges in a marketing strategy

The advantage of gaining critical mass in a marketing strategy can never be over- emphasised....and "auto Traffic Exchanges" can be the critical element to keep the wheel of your marketing strategy rolling.

It is happening with monotonous regularity that every newbie internet marketer wants results from "Day 1" and every pro marketer will vouch for the fact that they have undergone significant stresses and strains to reach where they have reached.

This prelude gives us an inkling of the position of manual traffic exchange users. A beginning is made with full gusto....and it is not long before the levels of motivation and enthusiasm come crashing down.

Here are some tips and tricks which will go a long way in making optimim utilisation of "Manual Traffic Exchanges" and bridging the gap between thory and practice.

1) Surf, surf and surf for at least a couple of months. Do not expect any results...because you seldom get them within two months.Patience is a virtue which is seldom practiced.


2) Do not make the mistake of including the URL of your internet opportunity on each and every manual traffic exchange you are participating....instead...use some of your traffic exchange affiliate links to derive the benefits of residual traffic in the long run.

3) Refer, refer and refer by cross promoting your affiliate link in Traffic Exchange A with Traffic Exchange B and so on.

4)Use "Splash pages" for promoting in "Manual Traffic exchanges"

5) Do not....please...do not use pop-ups and other distracting stuff to de-motivate your prospective downline in those precious 15-30 seconds he or she has a glimpse at your website. It's all to well to have them on the homepage of your website...but never put a pop-up on your splash pages...for all you know, the traffic exchange might reject your pop up splash page in the first place.

6) Use the magic of compounding which results in the power of residual traffic by building a good downline base.

7) Pick and choose your traffic exchanges and keep a note of the benefits offered. For example :
a) Referral structure for earning downline credits
b) Credits Ratio for own surfing
c) Free credits and bonus for being an active member
d)Ongoing contests
e) Read between the lines....
A traffic exchange may give free bonus credits for reading emails sent to members or a traffic exchange may give bonus credits for surfing 25 websites daily. Just imagine the misfortune you are going through if you surf between 20-24 websites on that exchange everybody. Further, it is always better to actively refer members in those traffic exchanges offering at least 20% credits in two to three levels.

8)Use the option to transfer credits to potential downline members if they join under you. Many traffic exchanges offer this option either through the traffic exchange or from the member's area.

9)Get into swap deals with other traffic exchange members. Statistics tell us that a majority of traffic exchange members join traffic exchanges directly from the homepage.
Do not commit the same mistake. Let's assume you are a member of Traffic Exchange A and you want to join Traffic Exchange B. It would benefit you greatly if you can post an offer in a forum you participate in that you are willing to join Traffic Exchange B under anyone who is willing to join under you in Traffic Exchange A. This is a win-win situation for both... you and the person you are doing the swap deal with.

10) Do use an affiliate link cloaker to get better response rates whenever you promote affiliate links. Use "Manual Traffic Exchanges" as a critical cog in the wheel of your marketing strategy. Do not commit the mistake of assuming that it is the wheel itself. Integrate other promotion methods like forums, safelists, blogs, rss feeds, search engine optimisation techniques,
ezine advertisements, joint venturing with other webmasters, etc. The possibilities are endless. Use "your brain" ...and...."your common-sense" to catapult yourself to the top of the ladder of success.

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An Internet Business Can be Your Financial Saftey Net!

The other day I was talking to a couple of my friends at a coffee shop and we were discussing the inability for average workers to get ahead. John had just received some money from a relative and had spent the day trying to get a good rate for his investment. He had only been offered 5.5% and wanted more.
He had $10,000 to invest and was happy with an interest rate of 5.75%. The best "at call" rate he had found after much research with financial institutions. He was after a safe investment during these uncertain times.
My other friend responded, "I wish I had the spare $10,000 to invest in the first place!". He went on to say that how difficult he found it to save any money after paying his bills each week. (Something you hear all the time)
We got out the napkin and a pen and looked at the situation. He had put all his efforts into running around to get an extra 0.25% on his money!
So instead of getting $550 in interest on his ten grand for the next 12 months, he would now be receiving $575.... Big deal....
An extra $25 for the year! He probably spent that much driving around and in phone calls.
What a waste of time and energy if you think about it!
My other friend on the other hand would love to have an extra $10,000 to invest. However, his day job does not allow him to save enough to "get ahead".
But.... He possesses a crucial ingredient that can earn the extra money he desires.... The ingredient is.... His "spare time".
Without changing or giving up your "day job", asking for a pay rise, or finding a second part time job....
The average PC literate person can earn a substantial extra income from home just by selling simple information products they create themselves based on what they "already know" and all in their spare time.
Marketing information.... Information people want, in the form of ebooks, ebooklets, special reports, audio tapes, video's and CD-roms is still the best home based Internet business you can start.
It's as true today as it was four years ago on the Internet.
People often ask me if it is really possible to earn decent money on the Internet if you only have a few spare hours in a day to devote to your online business. Surely the law of business prohibits you from "gaining a lot for very little"?
Here is the key that many people new to online business MISS....
You might only work 2 spare hours a day on your little Web business BUT your Web business (your website) WORKS FULL TIME 24 hours a day for you!... This is the reason why it does not take much of your time and yet can return far more than an hourly wage for the ACTUAL hours you put in.
Having a well-constructed website that sells for you 24 hours a day, 365 days a year on "autopilot" is like having an "electronic employee or salesman" working for you and presenting your product perfectly every time.
It's a business that works unmanned... Like a shop that never closes.
But you know.... It's not just the money you make, it's about establishing something else....A "safety Net" in hard times....
A small insurance policy should the worst happen.
Nobody can retrench you from your own business. A business that can never go broke either.... You can even set up a free website and perform zero cost marketing promotions. Zero overheads. Maximum profits.
That's how I started and you can do the same.
Even in hard times.... War, Anthrax scares, recession, have not effected my online business. Sales may not have increased, but they have not declined.
You may also think that you need "talent", writing skills and a certain level of education to succeed in running an online information product business. Not so, the world is full of educated and talented failures. What you do need however is "persistence" and a dogged determination to succeed.
So if you don't have spare money to invest, like my friend did, don't worry, 12 months from now you will have much more than my other friend who has invested his money to earn a measly interest of $575!!
You could have the same $10,000 plus an ongoing income from investing your "spare time" instead.
So next time you put your feet up in your spare hours, consider investing some of those hours up online!

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The 7 Step Challenge - Does Your Marketing Company Measure Up?

All companies are set up with one key goal in mind – to make money . Owners and investors put money into a company based on a business idea and plan. However, without continued and profitable sales they will fail.

It is essential that business owners realise how crucial it is to plan their sales and marketing effectively. This means understanding why people buy their products, who buys them, what problems purchasing those products solve, and what solving those problems enables the purchaser to do. Finally understanding how customers will put a value on the ownership of the product, as well as understanding the cost of not buying them.

In line with this, it is also very important to know the decision making process and also who their competitors are. This will impact the sales and marketing strategy, as well as pricing.

If you are not an experienced Sales or Marketing Manager, or indeed do not have the time to do everything yourself, you should look to investing in some services to compliment your own skill set. Below are some criteria, you should consider, before deciding on someone to help you generate additional business;

1. Experience – Do they have relevant experience in my type of business – Do they have satisfied customers?

2. Understanding – Do they understand what my issues and problems are - More importantly, do they understand my target market's issues?

3. Methodology – Do they follow and implement proven processes - Will they work for my business?

4. Measurement – Do they track all results - Can I see exactly what I am getting for my money?

5. Shared Risk – Do they work on a flat or fixed Fee - Or is their remuneration part based on my actual sales?

6. Credibility – Do they sound believable – Am I prepared to trust the future of my business with this firm?

7. Integrity – How honest are they with me – Are my customer contacts, plans and aspirations safe?

And finally

8. Passion – Do they have a passion to succeed in their own business, which will reflect on what they do for my Business?

Any engagement with an outside firm should be based on partnership. You need to share common values, and beliefs. While all businesses should operate to make a profit, there also needs to be a guiding principle of care and customer service.

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Building sales can be a day at the beach if you do it right

After years of hard work, you'd like a vacation. Maybe even that snorkeling trip to Cozumel you've been promising yourself since the day you went into business. But you can't. And business isn't the vacation it once was either.

You put in all that hard work to get your business off the ground, but it hasn't gotten easier, especially when it comes to finding new customers. And you aren't getting any closer to dipping your toes in the ocean than you ever were.

The good news, however, is the trip is still possible. And so is a business that runs like a dream. You just need to stop spending so much time chasing business and let it come to you instead.

The solution is to create marketing systems that work over and over again to fill the pipeline with prospects and convert more of them to customers. And don't forget the most important part – to get better at managing your existing customers. They're the solid gold of your business.

One of your best tools for an integrated selling and customer management system is CRM – customer relationship management software that does it all, so you don't have to. Just plug it in, sit back and let the automated processes reap better results than you ever managed during those 20-hour days. Because, after all, we don't want to lose sight of that sandy beach.

Let's take a closer look at life with a good CRM software program.

In order to fill the lead pipeline, you need to create marketing and selling systems to attract new clients. In a virtual environment, this means you enter your lead information into the software and let it generate pre-written emails and letters for follow-up.

With all that plum marketing, you're sure to make sales. Without a system, however, that might be as far as you get – you make the sale and then the client is history. Which means you're wasting one of the most valuable resources a small business has – the relationship. Studies show that 80% of your sales will come from 20% of your customers. Hence, it's easier to build revenue with follow-up than by finding new customers.

To maintain the customer relationships and take advantage of the power of referrals, use CRM to create client systems that automatically communicate with your customers. For example, after each sale, the software can send follow-up pieces requesting referrals, testimonials and can, based on the clients buying history, up-sell and cross-sell your company's other products.

Bottom line, don't try to do it all. Use software to work harder so you can hit the beach. In fact, using CRM, especially if your company is customer-focused, allows you to not only work less but get BETTER results than you ever did on the fly. Your customers consistently come to you, rather than you having to chase them down.

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Marketing Secrets for Small Business Owners

If you're a Small Bussines owner, you're probably wondering where you can get the biggest bang for the buck with your marketing dollars. As a veteran marketing professional and small business owner myself, I understand the importance of making the most from a limited marketing budget.

The good news for today's small business owner is that the Internet and local advertising can provide targeted reach at a reasonable cost. In particular, email, Internet marketing, and classified advertising, can generate huge returns for your business.

• Email  Marketing. Each year, nearly 20 billion emails are sent to consumers and businesses. As many as 60 percent of these emails are considered SPAM and about 20% are automatically tagged as such – making their way into the SPAM mailbox of your everyday email client.

However, what most email marketers fail to tell you is that the most productive email solicitations don't come from businesses, they come from word-of-mouth or viral marketing. Viral marketing is the practice of telling others about a positive experience with a brand, product or service.

As a small business owner, you can take advantage of email marketing by simply encouraging those who receive your emails to forward them to a friend. Also, tag your web pages with a "tell a friend" button which allows for easy emailing of a web page, URL, PDF, or related document. These features cost little or nothing to implement and can generate impressive

• Internet Marketing  Often the topic of Internet marketing scares off small business owners. However, Internet marketing itself can be an effective tool if leveraged appropriately. There are a variety of Internet marketing mediums. These option  include "pay-for" Internet marketing options such as Google AdSense, the Yahoo! Directory and so on as well as free or cost neutral options.

In Internet marketing, there are a couple of techniques that are highly effective and cost little or nothing to implement. The first and most popular is article marketing. Are you a subject matter expert? If you are, provide articles to other well known websites that can get your company name and URL out there. This can be done for free and provides the added benefit of having other sites link to your website, increasing your site's link popularity scores.

The second Internet marketing strategy that can drive you business is an affiliate program. At its most basic level, an affiliate program allows other website or companies to sell your products and receive a commission. Explore affiliate programs that can help distribute your products or services.

• .Clasified Advertising Still one of the best and most affordable ways to sell your product, classified advertising can be effective if you run your ad for multiple weeks. For as little as $30 per week or less, you can get your company name, product, website, or other unique identifier in front of a local audience.

Weekly papers are especially good if you are targeting a small area. These local papers are also well read – often cover to cover. So, if you want to advertise, forget the large display ads, magazine ads, or anything that costs more than 100$. Spend your money on classified ads and measure the response.

Marketing doesn't have to break the bank for the small business owner. In fact, it should be seen as an important way to drive revenue for your business. If you have little or no money to spend on marketing, be sure to take advantage of email marketing, Internet marketing, and classified ads to drive the success of your business. Also, make sure that everything you distribute (letters, invoices, business cards, and even your voicemail) mentions your company name and website.

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