When running a business to best build a solid foundation, you must identify who your customer are and tailor your marketing to appeal to them.
Based upon the current state of our economy, it is more important than ever to have a well-defined target market. Most businesses can afford to target every person. Small businesses can adequately compete with large companies by targeting an exclusive market.
Many businesses believe that they can target anyone interested in my services. Others believe they can target small-business owners, homeowners, or stay-at-home moms. Honestly, all of these targets are way too general.
Targeting a specific market doesn’t mean that you are excluding people. Alternatively, target marketing allows you to better control your marketing dollars and branding message on a niche market that is more likely to buy from you than others. This the more affordable and effective way to reach potential clients and generate business.
for instance, an automotive company could choose to market to car owners between the ages of 25 and 55 with incomes of $150,000-plus in Philadelphia, Pennsylvania. To hone in even further, the company could choose to target only those interested in Mercedes‑Benz, Audi and Cadillac. This market could be broken down into two niches: foreign and American cars.
With a clearly defined target audience, it is much much easier to determine where and how to market your company. Here are some tips to define your target market.
Review Your Current Customers
Who are your current customers, and why do they buy from you? Look for common interests and characteristics. Which customers generate in the most business? It is more than likely that others like them could also benefit from your product/service.
Competitive Research
Who is your competition targeting? Who are their current customers? Don't go after the same market. You may find a niche market that they are overlooking.
Examine Your Product & Service.
Make a list of each aspect of your product or service. Next to each feature, list the benefits it provides. For example, a graphic designer offers high-quality design services. The benefit is a sharp company image. A professional image will appeal to more customers making the company look professional and trustworthy. Sequentially, the benefit of a high-quality design is gaining more customers and increasing sales.
Once the benefits have been listed, make a list of people who have that need. For example, a graphic designer could choose to target businesses interested in increasing their client base. Eventhough this is still too general, you now have a base to start from.
Decide the Specific Demographics to Target
Figure out not only who has a need for your product or service, but also who is most likely to purchase. Consider about the following factors:
Age
Location
Gender
Income level
Education level
Marital or family status
Occupation
Ethnic background
Examine the Psychographics of Your Target
Psychographics are the more personal characteristics of a person, including:
Personality
Attitudes
Values
Interests/hobbies
Lifestyles
Behavior
Decide how your product or service will fit into your target's lifestyle. When and how will your target use the product? What features are most appealing? What media does your target turn to for information? Does your target read the newspaper, search online, or attend events?
Gauge Your Decision
Once you decide on a target market, consider these questions:
Are there enough people who fit my criteria?
Will my target really benefit from my product/service? Will they see a need for it?
Do I understand what drives my target to make decisions?
Can they afford my product/service?
Can I reach them with my message? Are they easily accessible?
You don’t have to break down your target too much! Remember, you can have multiple niche markets. Determine if your marketing message should be different for each niche. If you can reach both markets, with the same message, you may have broken down your market too far. Adversely, if you find there are only 50 people that fit all of your criteria, maybe you should reevaluate your target. The trick is to find the precise balance.
You may ask, "How do I find all this info?" Try searching online for research others have done on your target. Search magazine articles and blogs that talk about or to your market. Look for survey results, or consider conducting your own survey. Or your current customers for feedback.
Defining a target market can be difficult. Once you know who you are targeting, it is much easier to figure out which media you can use to reach them. And then you can decide what marketing messages will resonate with them. Save money and get a better return on investment by defining your target audience. If you need help with determining who your target audience is, or need to market better to your potential customers contact Kane Digital. You trusted digital marketing agency!