WEBVTT 00:00.080 --> 00:06.890 If you're a little bit sad by having to go from your Tam total addressable market to your Som, serviceable 00:06.890 --> 00:11.420 obtainable market in the serviceable obtainable market is usually what you can target, but it's so 00:11.420 --> 00:14.750 much smaller if you're a little bit sad about that. 00:14.780 --> 00:21.080 I have a great solution in this video for you, which is going to help you target your Tam, and this 00:21.080 --> 00:26.060 is called Segmentation Targeting and Positioning, abbreviated STP. 00:26.120 --> 00:32.390 This is a strategy commonly used by gigantic brands to become gigantic. 00:32.420 --> 00:34.100 Here's how it works. 00:34.100 --> 00:36.560 You see in your Tam the total market. 00:36.590 --> 00:38.750 You have all kinds of consumers. 00:38.780 --> 00:44.540 Not only are they all over the world or in a large geography, but they are segmented. 00:44.540 --> 00:46.280 So think about segmentation. 00:46.280 --> 00:48.680 Here's what we want to explore in segmentation. 00:48.680 --> 00:52.250 Some consumers are going to be health conscious. 00:52.250 --> 00:54.920 Some consumers are going to be eco friendly conscious. 00:54.920 --> 00:57.470 Some consumers are going to be budget conscious. 00:57.470 --> 01:02.210 Some consumers won't care about budget as much, but they'll want quality. 01:02.210 --> 01:08.310 And you can segment out more and more and more kinds of consumers for what's important for them. 01:08.820 --> 01:17.070 Now think about the food industry, because this is really profoundly exemplified in the food industry. 01:17.100 --> 01:22.560 When you go to a store, at least, let's say in United States, I don't know the situation in different 01:22.560 --> 01:25.260 countries, but in Europe it's very similar. 01:25.410 --> 01:30.750 In a store, standard store, food store, you have a lot of brands. 01:30.750 --> 01:37.890 As a consumer, you don't know what each brand is owned by. 01:37.890 --> 01:40.920 But let's take the example of candy. 01:40.950 --> 01:45.840 In United States, there are two companies, Mars and Hershey's. 01:45.870 --> 01:58.770 They own dozens and dozens and dozens of brands, ranging from gum to chips to dog food to candy. 01:58.920 --> 02:04.500 And even within candy, only there is, you know, the sugary candy for kids. 02:04.500 --> 02:07.410 There is the M&Ms that you know of. 02:07.440 --> 02:12.030 There is the more gourmet chocolate brands that they own. 02:12.060 --> 02:14.340 Then there's, you know, the basic chocolate brands like Hershey. 02:14.370 --> 02:21.990 There's the basic, but M&M, you know, Mars, they own the M&Ms, but they also own brands that maybe 02:21.990 --> 02:26.910 not aware of, but they own brands of more higher end gourmet chocolate. 02:27.000 --> 02:30.750 This is segmentation you see under one umbrella. 02:30.780 --> 02:36.480 They have a product for this kind of consumer, this kind of consumer, this kind of consumer, this 02:36.480 --> 02:37.080 kind of consumer. 02:37.080 --> 02:46.500 So every product can capture a certain sum and a certain serviceable market. 02:46.500 --> 02:49.080 And then you can add up all the markets. 02:49.080 --> 02:53.760 You don't have to target just the one sub niche market. 02:53.760 --> 02:56.160 That's what brands do. 02:56.160 --> 02:59.220 And large companies do this all the time. 02:59.220 --> 03:00.360 This is very common. 03:00.360 --> 03:03.240 But small businesses can do this too. 03:03.270 --> 03:05.250 In fact, I do this too. 03:05.250 --> 03:06.480 And I have a small business. 03:06.480 --> 03:07.840 Here's how I do this. 03:07.840 --> 03:14.020 So my business is primarily focused on helping professionals and entrepreneurs with various skills, 03:14.020 --> 03:17.200 and I want to capture as much of the market as possible. 03:17.200 --> 03:23.230 So I have different products, I have books, I have online courses. 03:23.230 --> 03:25.120 I have one on one coaching. 03:25.120 --> 03:28.300 I could have group coaching, I don't, but I could. 03:28.300 --> 03:35.380 So these are different products now, even within books or courses, let's say I'm helping entrepreneurs. 03:35.380 --> 03:37.690 I have a course on how to start a business. 03:37.690 --> 03:39.850 I have a course on how to register a business. 03:39.850 --> 03:42.070 I have a course on time management. 03:42.070 --> 03:43.720 I have a course on productivity. 03:43.750 --> 03:51.700 These are all tiny niches within the entrepreneurship and professional markets you see. 03:51.700 --> 04:01.120 So you can create or in the case of large businesses, they just buy brands like in case of Mars or 04:01.120 --> 04:05.260 giant food brands, they just buy up smaller food brands and make it their own. 04:05.260 --> 04:12.880 But if you're a small business, you can't just buy brands, but you can create products, niche products 04:12.880 --> 04:17.380 that target different segments of your audience. 04:18.130 --> 04:25.090 Because one person who's looking for a time management help, who's an entrepreneur, you might not 04:25.090 --> 04:30.850 capture them if you only have a product for how to start a business, because that person might need 04:30.880 --> 04:34.180 time management, another person might need very beginner. 04:34.210 --> 04:38.890 How to start a business, another person might need something else, and another person might need something 04:38.890 --> 04:40.720 altogether, something else altogether. 04:40.720 --> 04:50.620 So you see, this is how you capture cast a as wide a net as possible through segmentation understanding. 04:50.650 --> 04:54.700 First of all, what are the segments in a market? 04:55.300 --> 05:01.210 You can think of it the budget friendly, the gourmet food, the eco friendly. 05:01.210 --> 05:03.580 What do in your market? 05:03.610 --> 05:05.020 What do customers need? 05:05.050 --> 05:06.760 How do they segment out? 05:06.790 --> 05:09.220 You can get this information from surveying them. 05:09.220 --> 05:10.930 You can get this information from common sense. 05:10.940 --> 05:12.950 You can get this information from Google Trends. 05:12.980 --> 05:14.630 There's a lot of information. 05:14.630 --> 05:17.720 You can just talk to a lot of people, obviously, and they'll tell you. 05:17.750 --> 05:18.950 One person says they care about this. 05:18.980 --> 05:21.710 Another person says, I care about that, etc.. 05:22.100 --> 05:24.320 So you segment out your audiences. 05:24.320 --> 05:29.030 When you do your market research, it's hard not to come across ideas for different segments. 05:29.030 --> 05:30.710 It's just so apparent. 05:31.130 --> 05:38.240 And then you find a way to target that audience, either with a specific different product or with a 05:38.240 --> 05:40.280 specific marketing campaign. 05:40.280 --> 05:45.680 Like if you have an eco friendly product, suddenly you can reach out to influencers who promote eco 05:45.680 --> 05:49.040 friendly products and promote to their audiences. 05:49.040 --> 05:56.390 So there are new marketing opportunities that open up when you have different segmentation that you 05:56.390 --> 05:58.790 are targeting from different positioning. 05:58.790 --> 06:05.570 So this is the strategy to definitely use and think about how to use for your unique scenario, so that 06:05.570 --> 06:13.670 you can target as many people as possible and not be stuck with a very narrowed down, obtainable market.