Segment size and potential for future growth

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By collecting different information and targeting the promotion to selected segments, you increase your chances of a successful promotion. Namely, by creating a "one-size-fits-all" offer, you create a generic offer that, contrary to the name, does not actually fit anyone.

Targeting
After segmentation, it's time for targeting. When we successfully segment the market according to adequate criteria, in the sea of ​​potential customers we will easily choose the group that is most interesting to us according to the recognized characteristics.

When targeting, we take into account certain factors :

profitability of the segment (which segment is ready to give the most money for the product/service)
reach (how difficult it is to get in touch with a certain group and convey special lead information to them)
Therefore, we do not target only according to the size of the group and the potential for growth - so we will make only a small shift in relation to the "one-size-fits-all" offer. Sometimes a small number of loyal customers is more important for a company than a large number of potential ones. Luxury brands run successful campaigns by focusing on tightly focused target groups. Therefore, simply promoting a product generically to as many people as possible is rarely a winning combination. The ultimate goal is always profitability - to invest enough, but also wisely.

Positioning
Your product must find its position in the market. The product must be recognizable to the target audience because that's how they distinguish you from the competition. If your product or service occupies a unique position in the market, you have achieved tremendous success. In the world of marketing, we are talking about a value proposition , which answers the question of why someone should do business with you or buy your product. If your company/organization/product has a high value proposition, it is one of the most important features that sets you apart from the competition.