Who Are Your Customers

Identification of customers and prospects makes effective targeting possible. Small business owners pride themselves on knowing their customers personally. In the industrial field, understanding of each major customer and buying influence is essential. When dealing with a large number of customers, however, individual familiarity is not feasible. Hence mass merchandisers and others in this situation group their customers, whose reactions to offerings are similar, into segments. Then they design a separate appropriate marketing program for each segment.

Strategies vary, A small firm might prosper by concentrating its resources on one segment. Because customers are volatile, the specializing firm is vulnerable to sudden change in its target segment's patronage. Hence some companies address several segments simultaneously. Although expensive, a strategy of employing different tactics for different segments can be quite profitable. Other firms scatter offers to just anybody. They hope that segments will select themselves.

One basis for segmentation is geographic. Retail customers are apt to live or work in the store's vicinity. Industrial buyers tend to concentrate regionally. So do users of services. Intensive cultivation of local potential customers can be efficient and lucrative. Personal knowledge of local buyers and a shared community spirit help cement relations with these customers.

Segmentation is an art. All "honest serving men"­ - what, why, when, how, where, as well as who - can be the key to segmentation. Whatever the basis, each identified segment should have sufficient purchasing power to make a special effort commercially worthwhile. Accessibility is vital. How can the segment be reached? Are advertisements, telephone solicitations, or personal visits efficient? How about trade shows or personal contacts? The ideal segment is stable in purchase needs and loyalty, helping you fend off competition.

Besides segmentation, understanding of customers also requires insight into their buying roles. The buyer for a one-person household or one-person business is the initiator of the order, the decider, and the user. Even in this case, however, some outsiders are influential.

In larger households or businesses, these buying roles are usually played by separate individuals. It helps you to know who activates (requisitions) purchases, who exerts influence, who decides what and where to buy, who uses the product-and what their criteria are. Then you tailor and target your offerings to satisfy each major participant in the buying process.

As has been shown, understanding of customers enables a seller to increase sales. This same understanding can equally serve to reduce costs. Higher sales at lower costs inevitably boost profits.

A small firm that understands its customers can buy or produce exactly what they want-and nothing else. The firm's sales effort is efficient because it builds on why its customers want to buy not on why others buy, or why the vendor wants to sell.

Merchandise can be ready when customers need it. Thus a knowledgeable seller avoids unnecessary inventory costs or penalties for late delivery. Understanding how customers buy lets a seller employ promotional media, appeals, and timing for maximum effectiveness. Transportation costs are lowered by shipping merchandise to where it is needed. Knowledge of who comprises suitable segments and the separate buying roles can reduce the waste of soliciting unqualified or uninterested people.

Customers Are Dynamic

The best source for you to learn about customers is your personal interaction with them. At work, social and civic activities, and chance encounters, people talk and reveal their attitudes and motivation. Listen to your customers. You can also keep abreast of purchasing patterns by observing competitors' practices and by asking sales personnel who is buying what, where.

Articles in business and trade newspapers and magazines give information on products, trends, marketing, finance, the economy. Trade directories, Yellow Pages, and brokers' direct-mail lists identify who buyers are, and most industries have associations and specialized marketing research that provide insights for understanding customers.

This Report offers managing your Company tips and Handle business advice. However, you aren't prepared to start your own company
until you have given some thought to managing it. A company is a continuous activity that does not run itself. As the manager
you'll have to set goals, decide how to reach those goals and also make all the necessary decisions. You will have to purchase or
create your product, cost it, promote it and sell it.

You will have to keep documents, and determine costs. You will have to Control inventory, make the ideal buying decisions and keep
prices down. You will need to hire, train and motivate employees today or as you grow.

Setting Business Management Goals. Great small business management Is the secret to success and good management starts with
setting goals. Establish goals for yourself for the accomplishment of many tasks required in starting and managing your company
successfully. Be specific. Write down the goals in measurable terms of performance. Break big goals down into sub-goals, showing
exactly what you expect to achieve in the next two to three weeks, the next six months, the next year, and the subsequent five
years. Beside each target and sub-goal set a specific date showing as it's to be attained.

Plan the action that you need to take to achieve the goals. While the effort Required to reach each sub-goal should be good enough
to challenge you, it shouldn't be so great or unreasonable as to dissuade you. Do not plan to achieve too many goals all at one
time. Establish priorities.

Plan in advance how to quantify results so you can know exactly how Well you're doing. This is what is meant by"measurable" goals.
If you can not keep score as you move along you're likely to eliminate motivation. Re-work your plan of action to allow for
obstacles that might stand on your way. Try to foresee obstacles and plan strategies to stop or minimize them.

Buying. Skillful purchasing is an important essential of profitably Managing a business enterprise. This is true if you are a
wholesaler or retailer of merchandise, a producer or a service company proprietor. Some retailers say it is the most important
single factor. Product that's carefully purchased is not difficult to market.

Deciding what to purchase means finding out the type, type, quality, Brand, size, color, style -whatever applies to a specific
inventory - that will sell the best. This requires close attention to salespeople, trade journals, catalogs, and especially the
likes and dislikes of your regular clients. Assess your sales documents. Even the producer should view the issue through the eyes
of clients before determining what materials, components, and supplies to purchase.

Know your regular customers, and make a Fantastic evaluation of the People you hope will become your clients. In what
socioeconomic category are they? Are they homeowners or renters? Are they searching for cost, quality or style? What's the
predominant age category?

The age of your customers can be a prime consideration in Establishing a purchasing pattern. Young men and women buy more often
than most older people. They need more, have fewer responsibilities, and invest more on themselves. They are more conscious of
fashion trends whether in sporting apparel, automobiles or electronics. If you choose to appeal to the young trade only because
they seem dominate in your area, your purchasing pattern will probably be wholly different than when the more conservative
middle-aged clients appear to be in most.

Study trade journals, newspaper advertisements, catalogs, window Displays of companies like yours. Ask advice of salespeople
supplying you merchandise, but buy sparingly from several providers instead of one, testing the water, so to speak, until you know
what your best lines would be.

Finding suitable merchandise sources is not simple. You will buy Directly from producers or manufacturers, from wholesalers,
distributors or jobbers. Pick the providers who sell exactly what you want and can deliver it if you want it. (Distributors and
jobbers are used by most business people for fast fill-ins between factory shipments.)

You may distribute purchases among many suppliers to gain more Favorable prices and promotional stuff. Or you might concentrate
your purchases one of a small number of suppliers to simplify your credit problems. This will also allow you to become famous as
the seller of a certain brand or line of merchandise, and to keep a fixed standard in your products, if you're buying stuff for
manufacturing purposes.

When to buy is important if your business will have seasonal Variations in sales volume. More inventory will be needed prior to
the seasonal upturn in sales volume. As sales decrease, less merchandise is necessary. This means purchases of goods for resale
and materials for processing must vary accordingly.

At the outset, how much to buy is insecure. The best coverage is To be frugal until you've had sufficient expertise to judge your
wants. On the flip side, you can't sell product if you don't have it.

To help solve purchasing problems, you should begin to maintain stock Control records simultaneously. This can allow you to keep
the inventory in equilibrium - neither too large nor too small - with a proper proportion and decent range of merchandise, sizes,
colors, styles and attributes.

Basically , there are two types of inventory control - management in Dollars and control in physical components. Dollar controls
reveal the sum of money spent in every merchandise category. Unit controls indicate the amount of individual items when and from
whom purchased by class. A fantastic stock control system can help you decide what, from whom, when, and how much to buy.

Pricing. A lot of your success manage a business will depend on The best way to price your services. If your prices are too low,
you will not pay Expenses; too high and you will lose sales volume. In both cases, you will not Earn a profit.

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