One of the most important pillar of marketing strategy is ‘Market Segmentation’ that is dividing a market into distinct groups of buyers with different needs, characteristics, or behaviour that may require separate products and marketing strategies ( Kotler & Armstrong, 1999). The two steps involved in it are first, naming a broad product-market that suits firm’s resources and disaggregating all possible needs into some generic markets. Secondly, segmenting these broad product-markets in order to select specific target markets (Perreault & McCarthy, 2000)
There is an ongoing agreement that no one type of market segmentation is comparatively more effective than the other (Papers4you.com, 2006). Industries and companies around the globe has proved that according to firm’s resources, effective utilization of any market segmentation on ‘proactive basis’ has lead to capture profitable opportunities. Many types of segmentation are discussed in literature, however practically, two major types are commonly known as Single- Target Market Approach and Multiple Target-Market Approach.
Companies has gained edge by even adopting ‘ Single Target Market Approach’ that involves segmenting the market and select one of the homogenous segment as the company’s target market ( Quester et al, 2001). Practical examples were also highlighted as, for instance in Australia, National Australia Bank (NAB) and Coles super markets availed edge over competitors by proactively targeting new homogenous target market known as ’super consumer’. This segment has specific characteristics such as connected to internet, own a mobile phone, spend large amounts on fashion items, go to restaurants and have cable TV subscription. NAB attracted this new segment by offering easy to use online banking service, however, Coles offered 24 hours shopping, comparatively huge range of ‘up-market’ cooked meals and tailor-made fresh food items on demands of super consumer (Papers4you.com, 2006).
Similarly company can adopt ‘Multiple Target Market Approach’ that involves choosing two or more market segments and then taking each of them as different a separate target market to develop marketing strategy (Quester et al, 2001). It is also referred as ‘Benefit Segmentation’ where each divided segment is taken as benefit group on the basis of benefits that segment seek from company (Kotler & Armstrong, 1999). Companies also used such segmentation as tool for capturing new opportunities in a effective way. For instance effective service providers in gym industry are realizing that unlike in 1980s where aim of gym membership is to make better appearance is being added by the market concerned with health issues such as heart diseases, posture and BP. So service providers who proactively realized changing trend in market quickly shifted from single market approach to multiple one by offering different products for different groups such as normal fitness services to appearance conscious group and health related expensive services to elite class with high rates (Quester et al, 2001).
Hence the discussion shows that market segmentation is imperative for developing marketing strategy and can be used as an effective tool to gain edge , however key here is adopting ‘ proactive approach’ to realize changing trends.
References
Kotler, P & Armstrong, G, (1999), ‘Principles of Marketing’, Eight Edition, New Jersey: Prentice- Hall Inc
Quester, P, G, McGuiggan, R, L, McCarthy, E, J & Perreault, W, D (2001), Basic Marketing- A Managerial Perspective’, Australia: McGraw Hill Book Company Australia Pty Limited
Papers For You (2006) “C/M/316. The benefits of segmentation”, Available from http://www.coursework4you.co.uk/sprtmrk6.htm [19/06/2006]
Papers For You (2006) “K/M/10. Explore the theories surrounding the core marketing principle of Segmentation, Targeting and Positioning”, Available from Papers4you.com [19/06/2006]
Perreault, W, D & McCarthy, E, J, (2000), ‘Essentials of Marketing- A Global Management Approach’ International Edition, USA: McGraw Hill Companies Inc
One of the main reasons people start businesses is to make money. For some it’s a blessing to make money doing something they love. I’m not saying that you have to love house cleaning in order to have a successful house cleaning business; however it would be a good idea if you didn’t hate it.
How much money you make depends on how big you want your business to be. It could be a one person operation where you set up at home and service areas close to home, or you could set up a commercial office and hire people to work for you.
Here are 7 simple steps to get you started on your own house cleaning business.
1) Decide exactly what kind of house cleaning services you will offer.
Here you decided what cleaning you will do, like making beds, vacuuming, mopping and waxing floors, dusting and so on. Also note what you won’t do, e.g. laundry. You can also decide to specialize, e.g. by cleaning carpets only, or cleaning suspended ceilings only.
2) Pricing your housecleaning service.
To have an idea of how to charge for your housecleaning service, use your competition. Check your telephone directory and the classified ads section in your local newspapers for cleaning businesses, call them up (pretend to be a prospective client) and find out exactly what cleaning services they offer and how much they charge. With this information gathered decide the best price to charge for your cleaning service.
3) Workout startup costs.
For this you need to consider, tools, material, transport, advertising, insurance etc. Write down a list all the tools and material you need, like cleaners, sponges, mops, carpet cleaning equipment etc. Next find out the cost of each item on the list and write it down next to the item.
Transport: you will have to estimate your costs here. You see it depends on where your client is located and your means of transportation to get to your client. (Having your own vehicle would be to your advantage).
Advertising: You can use free advertising (word of mouth) and paid advertising (classifieds, telephone directory ads etc). Phone calls to your local newspaper and the telephone company who publish your telephone directory will tell you the cost of placing ads.
Once you’ve gathered all this information, calculate your total startup costs.
4) Name your business.
Choosing an appropriate name for your house cleaning business is important. Here are a few examples I got of the internet, ‘Maid Brigade’, ‘All Shine Cleaning’, ‘White Glove Cleaning Service’. Please avoid using ‘Your Name Cleaning Services’. Using your own name as part of your business name is over done by many house cleaning businesses. Brainstorm and come up with a name that helps you stand out of the crowd.
5) Learn the zoning regulations of your community.
Check the city clerk’s Office or your local library for a copy for a copy of the zoning laws governing your community. Your reason for doing this is that some zoning regulations prohibit home businesses in a community.
6) Do a few free cleaning jobs.
Well you’re not actually doing them for free. You’re doing them in exchange for references (these add to your credibility for future paying clients and are invaluable). You can offer these free cleaning jobs to friends, non profit organizations in your communities etc.
7) Get your first paying client then get another and another and another and so on.
Tell everyone you know that you’ve started a cleaning business and place ads in the local newspapers. In the beginning you need to spend most of your time and money getting paying clients. However, the more clients you get the less time and money you spend on marketing and more time you spend on cleaning and making your clients happy.
This is just the beginning. Once you start making money take a house cleaning business course to help you better manage your business in terms of growth, accounting, taxes, insurance better marketing strategies and more.
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You have permission to publish this article electronically or in print, free of charge, as long as the bylines are included. A courtesy copy of your publication would be appreciated. fayolap@yahoo.com
About The Author
Fayola Peters is the webmaster of housecleaning-tips.com. To find more information about a house business cleaning course check out her website at http://www.housecleaning-tips.com.
fayolap@yahoo.com