The Concentric Rings Model of Target Segments

The concentric ring model of core and adjacent customers sounds complicated but is actually a really simple model to understand.

If you think of the whole market as the outer ring containing everyone who might ever make a purchase and then working your way in through a series of rings to your core customers who occupy the middle smallest circle – these are your raving fans who will buy anything you put out there. 

These rings make it easy to think about how to target a range of customers whilst also focusing on your key target segment (the middle).

If you create marketing for the target segment who will purchase almost anything you make because you have made it essentially ‘for’ them. 

Those in the circle next to it are likely to find your offering compelling too and a percentage of those customers will likely make a purchase also. 

This goes on with each ring and a smaller and smaller percentage of each subsequent ring making a purchase and becoming a customer.

With this model you can target your core customers whilst also creating promotional messaging that might make your products or services appeal to a wider audience all whilst not diluting your brand offering. 

The key to getting this whole thing right though is clearly identifying who your core customer is and then what kind of customer is in each ring of the circle. 

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