Introduction
The way that people consume products and services is changing dramatically as technology advances, and this means that businesses need to be increasingly precise in how they categorize and target their their markets. Traditionally, markets have been divided into broad sectors such as consumer products and services, which encompass many different types of products and services specific to that sector. In order to better target and understand consumer views and interests, many businesses are now conducting research into the industry sub-sectors within a market, since this provides a much more granular level of understanding than a broad industry sector.
Definition of Industry Sub-Sector
An industry sub-sector is a smaller market that is composed of a specific set of related products or services that have similar characteristics and users. The most common type of industry subdivision is an industry segment, which is composed of a distinct group of customers with the same needs or preferences. For example, a consumer-products sector may have a segment composed of sports enthusiasts that would drive a different marketing strategy than a segment composed of senior citizens.
Benefits of Analyzing Industry Sub-Sectors
The benefits of analyzing industry sub-sectors are numerous--businesses gain a better understanding of how to target specific groups of customers, discover new opportunities, and can more accurately strategize in order to maximize profits. Analyzing industry sub-sectors also allows businesses to respond quickly to changing trends in the market, and to better identify competitive opportunities and potential weaknesses. Additionally, this type of analysis allows businesses to identify specific areas that require improvement or to emphasize certain aspects that can benefit overall sales.
Case Study: Automotive Industry
The automotive industry is one sector that is particularly well-suited for analysis of industry sub-sectors, as there are a range of different types of vehicles that belong to the sector. For example, within the automotive industry, there is a variety of sub-sectors. This includes automotive components such as tires, engines, and transmissions, as well as the SUVs and luxury cars, light trucks, vans and trailers that are used to transport people and cargo. Another sub-sector of the automotive sector is car rental services, which provide transportation solutions to individuals or businesses.
Conclusion
The importance of analyzing industry sub-sectors has become increasingly evident as businesses strive to reach specific markets with tailored products and services. By understanding the interests and preferences of certain customer segments, businesses can use this information to create marketing campaigns that are tailored to the interests of their target audience. Additionally, analysis of industry sub-sectors can help businesses identify potential opportunities for expansion and improvement and can also give them an edge over the competition. The case study of the automotive sector illustrates how analysis of industry sub-sectors can be beneficial for that particular market.
