How to Sell Your Product or Service - Market Segment & Client Profile (Part 3 of 11)

Summary

This module focuses on identifying the Total Available Market (TAM) for a product or service. It emphasizes the importance of creating a buyer profile to target potential clients effectively. The process involves generating a list of potential buyers, categorizing them into B2C (business to consumer), B2B (business to business), and hybrid segments, and then prioritizing these categories based on the likelihood of sales. The example of a pest control company is used to illustrate how to segment and prioritize the market, ultimately defining a market niche to focus sales and marketing efforts.

Takeaways

• 🌐 **Total Available Market (TAM)**: The concept of TAM refers to the entire potential market for a product or service, but realistically, not everyone will buy it.
• 🎯 **Identify Target Customers**: It's crucial to develop a profile of potential customers who are most likely to purchase your product or service.
• 📝 **Create a List**: Start by generating a comprehensive list of all potential clients who might be interested in your offering.
• 📋 **Categorize the List**: Break down the list into categories to better understand and approach different segments of the market.
• 🔄 **Prioritize the List**: Once categorized, prioritize the list based on the likelihood of making a sale, from high to low probability.
• 🚫 **Avoid Selling to Everyone**: Recognize that you cannot sell to everyone and should focus on the most promising prospects.
• 🍽️ **Example of Pest Control**: The script uses a pest control company as an example to illustrate how to identify and categorize potential clients.
• 🏠 **B2C (Business to Consumer)**: One category is B2C, which involves selling to individual consumers, like homeowners or small business owners.
• 🏢 **B2B (Business to Business)**: Another category is B2B, which involves selling to other businesses, such as restaurants, banks, and commercial buildings.
• 🏘️ **Hybrid Category**: There's also a hybrid category that includes entities like property managers or multi-apartment building owners, who fall between B2C and B2B.
• 📈 **Focus on High-Probability Sales**: After categorization, focus on the segments where you're most likely to make sales effectively.
• 📊 **Develop Targeted Materials**: Tailor your marketing, presentation, and selling materials to the specific market niche you've identified as your target.

Q & A

What does TAM stand for in the context of the script?

TAM stands for Total Available Market, which refers to the entire potential market for a product or service.

Why is it important to develop a profile of potential clients?

Developing a profile of potential clients helps to identify those who are more likely to buy the product or service, increasing the chances of successful sales.

What is the first step in creating a target market profile according to the script?

The first step is to generate a list of all potential people who would possibly buy the product or service.

How does categorizing the list of potential clients help in sales?

Categorizing the list helps in breaking down the market into manageable segments, making it easier to prioritize and focus sales efforts.

What does B2C stand for and what type of clients does it include?

B2C stands for Business to Consumer, and it includes individual consumers such as homeowners, restaurant owners, and apartment owners.

What does B2B stand for and what type of clients does it include?

B2B stands for Business to Business, and it includes commercial entities like restaurants, banks, stadiums, commercial buildings, warehouses, and golf courses.

What is meant by a hybrid category in the context of the script?

A hybrid category refers to clients that fall between B2C and B2B, such as apartment building owners or property managers who manage multiple properties.

Why is it crucial to prioritize the market niches after categorizing?

Prioritizing market niches helps in focusing on the segments with the highest probability of sales, ensuring efficient use of sales and marketing resources.

What is the significance of the term 'Market Niche' in the script?

The term 'Market Niche' refers to a specific segment of the market that a business targets after identifying and categorizing potential clients.

What is the homework task mentioned in the script?

The homework task is to list out potential prospects, categorize them, and then prioritize the market niches to focus sales efforts.

Why is it suggested to focus on residential clients first in the script?

It is suggested to focus on residential clients first because it involves one-on-one selling, which can be more effective and yield a higher return on investment.