GWC Valves

Identifying and Understanding Markets; GWC Valves International

When your company is at the stage of dividing the market in segments based on differences in customers, it is important to understand the needs of your current and potential customers. Before you will be able to answer that, there are other points to look into first. They are:

Knowing the market you will be competing in

In this stage, it is crucial to identify, define and understand the different sub-markets for your products and services. The general types of markets are consumer, organizational, government and institutional. Within each of these, there are more segments to be explored. While some of these types can be broken down in age, like consumer markets, it is not very useful do to so under organizational markets.

Understanding the need you would like to satisfy in that particular market

In order to complete this step, you should keep in mind that customers buy benefits and not usually a product or service. For example, people purchase a water bottle in order to have the convenience of drinking wherever they are and whenever they want. Another aspect to think about it how you would like to distribute your product. GWC Valves offers their customers many ways to purchase but as a first time buyer, especially it is a large purchase, they might want to try it out first and see the quality of the product.

What are the dimensions with which you will segment the market

These dimensions have to be organized according to type of market because the ones used for segmentation vary substantially. There are four dimensions commonly used to segment consumer markets. They are demographic, which consist of age, gender, level of education and income among other things, psychographic which encompasses personality, lifestyle. and motivation. The last two are geographic segmentation which, from the name you can guess it is based on the location of where your customers live and behavioral segmentation which are the benefits sought and expected use by the customer.

As for the dimensions of segmentation for organizations, are what is the intended use of the products bought (is it going to be for their business operations or resell?), expected benefits to be provided, size of organization, SIC code of organization’s products and other characteristics of the organization.

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Identifying the segments in the market

After those dimensions have been selected, segments then must be identified in the market under study.

Evaluating your segments

The marketing segments must be measurable (the amount of people in the segment), accessible (the segment can be easily reached), compatible (consistent with the overall goals of the organization), and substantial (large enough to justify ) in order for them to be worth something.

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Creating a customer profile of what kinds of purchasing behavior they will engage in

GWC Valves has profile of all their customers in order to understand what might make them purchase their products vs what might put them off. This is a great way to know the types of people who might be interested in your product. Just beware when you are trying this out that this process differs considerably across different types of markets as well as across different types of customers.