Markets are everywhere. If you’re venturing into the world of Managed IT Services, especially for Microsoft 365, understanding where to find your market and how to choose the right one is crucial. The right market can determine the success or failure of your business. Whether you’re just starting out or you’re a seasoned expert, this guide will help you find and target the right market for your services.

Choosing Your Market: The Basics

First things first, let’s break down how to choose your market based on your experience and the nature of your services.

1. You’re a Newbie: Use Industry (Sectoral) Segmentation

If you’re new to the industry, it’s best to start with sectoral segmentation. This means focusing on a specific industry, such as healthcare, finance, or retail. By targeting an industry, you can tailor your services to the specific needs and challenges of that sector, making it easier to market your services.

Why Sectoral Works for Beginners:

• Clear Needs: Industries often have well-defined needs, such as regulatory requirements or specific technology demands.
• Easier to Find: Industry directories, trade associations, and sector-specific events can provide you with a list of potential clients.

2. You’re an Expert: Use Psychographic Segmentation

If you’re already an expert in your field, psychographic segmentation is a powerful way to differentiate yourself. This involves targeting clients based on their attitudes, values, and aspirations. For example, you might focus on businesses that prioritize digital transformation or those that value cutting-edge technology solutions.

Why Psychographic Works for Experts:

• Higher Value Clients: By focusing on specific mindsets or business goals, you can attract clients who are willing to pay a premium for specialized services.
• Strategic Positioning: It allows you to position yourself as a thought leader or niche expert, which can lead to more significant opportunities.

3. Your Skill is Platform Dependent: Use Behavioral Segmentation

If your skills are closely tied to a specific platform (like Microsoft 365), or if the platform is widely used and stable, behavioral segmentation is a smart choice. This means targeting clients based on their behaviors, such as the tools they use or their purchasing habits.

Why Behavioral Works for Platform Specialists:

• Clear Usage Patterns: You can target businesses that already use Microsoft 365 or similar platforms, making it easier to offer your services.
• Tool-Specific Solutions: You can provide highly targeted services that align with the tools and platforms your clients are already using.

4. You’re Niching Down: Use Geographic and Demographic Segmentation

When you’re niching down, geographic and demographic segmentation can help you focus your efforts. This approach is useful when you want to target a specific location or a particular demographic group, such as small businesses in a certain city or tech startups led by young entrepreneurs.

Why Geographic and Demographic Work for Niching:

• Localized Marketing: You can tailor your marketing efforts to a specific location, making it easier to build relationships and establish a presence.
• Targeted Messaging: By focusing on demographics, you can craft messages that resonate with a particular group, increasing your chances of success.

5. You’re Confused: Stick with Sectoral Segmentation

If you’re unsure about which market to target, start with sectoral segmentation. It’s the safest bet, especially if you’re still exploring your options. By focusing on a specific industry, you can build expertise and gradually expand your reach.

Finding Your Market: Practical Steps

Once you’ve chosen your market, the next step is finding it. Here’s how you can locate your target audience using different segmentation approaches:

1. Geographic Approach

If you’re using a geographic approach, finding your market is relatively straightforward. You can use tools like Google Maps, business directories, or even physically visit areas where your target clients are located.

Where to Find Them:

• Google Search: Look for businesses in your target location.
• Local Chambers of Commerce: These organizations often have directories of local businesses.
• Networking Events: Attend local business events or industry meetups in your area.

2. Demographic Approach

Demographic segmentation can be a bit trickier since it’s hard to pinpoint specific demographics manually. However, you can use online platforms to target specific groups based on age, gender, income, or occupation.

Where to Find Them:

• Facebook Ads: Use demographic targeting to reach specific groups.
• LinkedIn: Filter searches based on job titles, industries, or company size.
• Industry Forums: Join forums or groups where your target demographic congregates.

3. Psychographic Approach

For psychographic segmentation, you’ll need to focus on finding clients based on their interests, values, or problems they want to solve. This involves searching for brands, software, groups, or events that align with their mindset.

Where to Find Them:

• Brands and Software: Identify businesses that align with certain values or goals, such as those focused on sustainability or innovation.
• Events and Webinars: Attend or host events that attract like-minded businesses.
• Online Communities: Join forums, LinkedIn groups, or social media communities that focus on specific problems or solutions.

4. Behavioral Approach

Behavioral segmentation requires you to find clients based on their actions—such as the tools they use, the products they buy, or the events they attend. You can target them by identifying the specific behaviors that indicate they need your services.

Where to Find Them:

• Product and Tool Reviews: Look for businesses that have reviewed or mentioned using Microsoft 365 or related tools.
• Freelancing Platforms: Search for clients who have previously hired for similar projects.
• Industry Reports: Analyze reports that highlight trends in tool usage or spending patterns.

5. Sectoral Approach

With sectoral segmentation, finding your market is often the easiest. You can simply search for lists of businesses within a specific industry.

Where to Find Them:

• Google Search: Look for industry-specific directories or associations.
• LinkedIn: Use the industry filter to find companies within your target sector.
• Trade Publications: Subscribe to magazines or newsletters focused on your chosen industry to stay updated on potential clients.

Action Step: Start Searching

Now that you know how to choose and find your market, it’s time to take action. Use the platforms and strategies outlined above to start searching for your ideal clients. Whether it’s through Google, LinkedIn, Facebook, or freelancing platforms like Upwork, the key is to be proactive and consistent.

Remember, finding your market isn’t a one-time task. It requires ongoing effort and adaptation as your business grows and evolves. By choosing the right market and actively seeking out clients, you’ll set the foundation for a successful Managed IT Service business for Microsoft 365.

Good luck, and happy hunting!