Market segmentation is a marketing strategy that marketers use to group and categorize customers depending on their needs, likes, preferences, and dislikes. It is possible and essential to a locksmith who provides services in a particular region to segment his market. Here are some of the benefits that he will accrue after clustering his customers.
1. Determine Market Opportunities
Marketing segmentation helps an individual to have a clear analysis of a particular segment and determine the level of satisfaction among customers. If customers in a specific sector are not satisfied, it will provide an opportunity for an individual to enhance satisfaction in that niche. For example, locksmiths in a particular region might not be providing quality customer services. This is an opportunity that other professionals in the industry can utilize.
2. Adjustment in Marketing Appeals
Advertising messages and promotional appeals can easily be adjusted to target a particular market niche. This is different from the marketing and promotional appeals that are generic. Customizing marketing messages to a specific group of customers has proved to be an important marketing strategy that businesses can incorporate to increase their market penetration.
3. Service Delivery
Market segmentation helps locksmiths and other technicians to provide services that meet the needs of a particular market. Locksmiths who specialize in buildings will be able to customize their services so that they can suit house owners, real estate companies, and tenants. The same would apply to a locksmith who specializes in solving car locks or provide a up to date home security checklist.
4. Price Setting
Pricing is an important aspect in the service industry. Market segmentation helps in understanding how to set prices. This is because different market niches have different price perceptions. For example, providing lock repair services in the auto industry is expected to be higher as compared to providing the same services in the real estate sector. Moreover, a technician will be able to set prices for high-end customers and low-income consumers who occupy different market segments.
5. Quality Service Delivery
A locksmith who specializes in providing services in a particular area will be able to master all the concepts and tricks for a specific market segment. This will enable him to provide quality services to the customers in that niche because he has learned all the ideas of that segment. He will not only be able to offer specialized and customized services in that area, but he will also be able to come up with captivating marketing messages and programs that attract a considerable number of customers.
6. Efficient Use of Resources
A locksmith company that decides to target a particular market segment can experience better and efficient use of resources as compared to a company that targets a broader scope. Limited resources in terms of money and human capital can be directed to a single niche, which will lead to increased results.