Self Referencing Definition
self-referencing – adj : describing a market or set of
customers in which the customers interact intensively with one another and rely
on each other (reference each other) for information about a type of product or
service. Self-referencing customer groups tend to read the same periodicals,
belong to the same clubs or professional associations, attend the same
conferences, conventions and trade shows, or communicate with one another
through word-of-mouth, Internet chat rooms or web logs (“blogs”), or at actual
events such as industry conferences, conventions, concerts or other gatherings.
Businesses value self-referencing customer groups because they tend to be
relatively inexpensive and efficient to reach, communicate
with and market to.
Examples:
DentaSpecial Inc. has developed an innovative new device for use by dentists. Because
dentists are a tightly self-referencing group, DentaSpecial can reach their
prospective customers
relatively efficiently inexpensively; rather than advertising on television or
in popular magazines
at great expense, the firm can promote its products by advertising in the
professional periodicals and at the annual and regional conventions of
dentists’ professional association, the American Dental Association (ADA).
Because dentists tend not to compete with each other beyond local boundaries,
they are very comfortable “comparing notes” with their professional colleagues
and sharing best practices with one another.
CoolTool Inc. has developed a revolutionary new woodworking tool and
would like to market the tool to serious woodworkers. Fortunately, these –
finish carpenters, cabinet-makers, and serious woodworking hobbyists – are a
highly self-referencing group, “sharing” information and best practices by
subscribing to a handful of publications such as Fine Woodworking Magazine. Advertising in, or purchasing the subscriber
list for, such a limited-circulation publication costs a tiny fraction of
broad-based marketing promotion to the general public (most of whom would not be
interested in CoolTool’s products). ------------------------------------------------------------
Adapted from "The CompanyCrafters Entrepreneur's Dictionary"
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