Successful media entrepreneurs understand the process of dividing an available market or audience into distinct groups with specific needs, attitudes and behaviors. This involves segmenting the potential market so you can identify target audiences and then position your products and services to appeal to these select customers. You can segment customers based on geography and demography, or attitudinal, psycho-graphic and behavioral traits. You also need to know how to evaluate the profitability of each target customer segment. Loyal and engaged customers, who are emotionally attached to the services and products you provide, will buy more, pay more, sell more and cost less, leading to increased growth in customers and profits. Here is what you’ll consider in this chapter:
- How to approach customer segmentation.
- How to define a target market.
- How to use the adoption curve for targeting and positioning.
- The different types of customer relationships in the media industry.
- How to evaluate the profitability of each customer segment.