Analysis of Entrepreneurial Opportunities and Market Segmentation

This report delves into entrepreneurial opportunities, emphasizing market segmentation and targeting strategies for a business selling handmade winter socks. It begins with an introduction highlighting the various avenues available to entrepreneurs, such as franchising, licensing, and network marketing, before focusing on the specific opportunity of selling handmade winter socks. The main body of the report outlines the importance of market segmentation, defining it as the process of dividing a market into distinct groups based on demographics, geography, psychographics, behavior, and benefits. The report suggests that the business should implement benefit and demographic segmentation. It also emphasizes the importance of targeting specific customer groups, such as children and the elderly, and the benefits of focusing on niche markets to avoid intense competition and gain a competitive advantage. Various marketing strategies are proposed, including social media promotion, direct selling, and participation in local craft fairs. The report stresses the need for effective communication and the importance of measuring the attractiveness of market segments. The conclusion summarizes the key findings, emphasizing the significance of segmentation and targeting for business profitability and suggesting that demographic segmentation can help in gaining customer loyalty.

Entrepreneurial
Opportunity

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
CONCLUSION................................................................................................................................4
REFERENCES................................................................................................................................6

INTRODUCTION
In present business environment, there are ample of opportunities can be explored as well
as captured by entrepreneurs. For instance, Entrepreneurs can invest in multiple business. In
addition to this, other opportunities available with business owners are buy a franchise, licensing,
dealership etc. Network marketing is considered to be an opportunity which can be exploited by
an entrepreneur for increasing the customer base.
The present report have focus on identifying the target market segment for selling
handmade winter socks. It also has emphasized on analysing the benefit of targeting specific
market or customer segment.
MAIN BODY
Manager in an organisation should first develop as well as implement market
segmentation strategy. Ass this tactic will provide firm an ease in identifying target customer
group. Marketing segmentation can be defined as the procedure of diving a market of potential
customers into groups, based on different characteristics. There are different grounds on the basis
of which market can be categorised into several segments these are demographic, geographical.
Psycho graphic , behaviour and benefit market segmentation. In context of company selling
hand made winter sock can implement both benefit and demographic market segmentation
strategy. The major advantage of benefit market segmentation strategy is that it is easier to take
advantage of existing segment, then to create new segments (Berglund and Korsgaard, 2017). By
implementing the demographic segmentation strategy , firm can gain customer loyalty and can
retain client for long time.
Targeting can be referred to as the procedure of selecting the specific customer or market
segment for selling specific products or services. It helps marketing manager in identifying the
plans or strategies which are required for influencing the selected target group to buy specific
products or services (Foss and Klein, 2017. ). An entrepreneur can target all customers groups
such as children , young and old age people for selling socks. But business owner should
concentrate on targeting children and old age people, as it will be easy to target them. In addition
to this, an entrepreneur can target people belonging to middle income group, as these people get
easily influenced by discounts and offers. An organisation can also target in niche market, as
this will help business entity in escaping from intense competition. Targeting customers in Niche
market will help an enterprise in increasing sales and profitability. This targeting strategy has

been suggested as there is no security that whether people will buy specific product or not. In
addition to this, there is less risk involved in launching the handmade products in niche market.
Targeting customers in Niche market strategy will also help business entity in gaining
competitive advantage (Shepherd and Zacharakis, 2018).
Company can utilise social media platform for the purpose of promotion of goods or
services. This digital strategy is effective as an enterprise can promote products or services at
large scale. Business entity by utilise social media platform can reach to wide number of
customers.
Direct selling is the another marketing strategy which can be utilised by company for
selling handmade winter socks to customers. It is considered to be an effective strategy, as direct
marketing technique provide marketer an ease in positively influencing people to buy goods or
services (Mathias and Williams, 2017). In addition to the above marketing techniques, other
promotional strategies which can be applied by an organisation include Renting a booth at local
craft fairs. It considered to be as an easiest as well as cost effective way of reaching to the target
audience.
It is very much important for marketing manager in an organisation the segment selected
by them is unique or distinct from other in context of demands as well as needs. As too much
overlapping means that distinct marketing strategies will not be able to cater the needs of target
audience. An effective as well as continuous communication is very much important in order to
influence people to buy hand made winter socks or other products. It is required by marketing
manager in an enterprise to ensure that shoppers in the specific market segment are able to
receive goods or services (Parker, 2018). In addition to this, there are different ways through
which an attractiveness of segment can be measured these are cost of entry into the market,
growth rate, short as well as long term profit. In context of socks making organisation, business
entity has been provided with suggestion to target Nice market , this strategy will help firm in
gaining long term profit.
CONCLUSION
It has been concluded from the report that segmentation as well as targeting are the two
important marketing activities which have effect on the profitability of an enterprise. Study has
concluded that targeting the all customer group can be profitable.

Demographic segmentation strategy has been suggested to an organisation , as this will
assist enterprise in gaining customer loyalty.

REFERENCES
Books and Journals:
Shepherd, D.A. and Zacharakis, A., 2018. Conjoint analysis: A window of opportunity for
entrepreneurship research. In Reflections and Extensions on Key Papers of the First
Twenty-Five Years of Advances (pp. 149-183). Emerald Publishing Limited.
Berglund, H. and Korsgaard, S., 2017. Opportunities, time, and mechanisms in entrepreneurship:
On the practical irrelevance of propensities. Academy of Management Review, 42(4),
pp.730-733.
Foss, N.J. and Klein, P.G., 2017. Entrepreneurial discovery or creation? In search of the middle
ground. Academy of Management Review, 42(4), pp.733-736.
Mathias, B.D. and Williams, D.W., 2017. The impact of role identities on entrepreneurs’
evaluation and selection of opportunities. Journal of Management. 43(3). pp.892-918.
Parker, S.C., 2018. The economics of entrepreneurship. Cambridge University Press.