How can you identify the most profitable target markets for ID products in the furniture industry?

3 Segment the market

The third step is to segment the market into smaller groups of customers who share similar characteristics, needs, and preferences. You can use different criteria to segment the market, such as demographic, geographic, psychographic, behavioral, or benefit-based. For example, you can segment the market by age, income, location, lifestyle, personality, attitude, usage, loyalty, or satisfaction. The goal is to identify the segments that are most relevant and attractive for your product category.

4 Evaluate the segments

The fourth step is to evaluate the segments and select the ones that are most profitable and feasible for your product category. You can use different methods to evaluate the segments, such as market potential, market growth, market share, competitive intensity, customer value, and customer fit. For example, you can estimate the size and potential of each segment, the growth rate and trends of each segment, the existing and potential competitors in each segment, the value proposition and satisfaction of each segment, and the fit between your product category and each segment.

5 Position your product

The fifth step is to position your product and create a unique selling proposition that appeals to your target segments. You can use different strategies to position your product, such as functional, emotional, symbolic, or experiential. For example, you can position your product based on its features, benefits, quality, price, design, style, image, or experience. The goal is to communicate how your product is different from and better than the alternatives in the market.

6 Develop your marketing mix

The final step is to develop your marketing mix and implement your marketing strategy. You can use different tools to develop your marketing mix, such as product, price, place, and promotion. For example, you can design your product features, benefits, quality, style, packaging, and branding. You can set your product price based on its value, cost, demand, and competition. You can choose your product distribution channels, locations, and logistics. You can select your product promotion methods, media, and messages. The goal is to deliver your product value to your target segments and achieve your marketing objectives.

7 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?