Conducting successful marketing campaigns require a good understanding of the target market. Since consumers have different buying habits, you can’t target everyone. Small businesses can effectively compete with large companies by targeting a niche market. Many businesses say they target “anyone interested in my services”. Some say they target small-business owners, homeowners, or stay-at-home moms. All of these targets are too general.
Target marketing allows you to focus your marketing expenses and brand message on a specific market that is more likely to buy from you than other markets. This is a much more affordable and effective way to reach potential clients and generate business.
So how do you identify your target market?
1. Create a customer persona
Picture the characteristics of your ideal customer. Start with general facts, such as what gender they are, their age, or geographical location – this is your demographic.
Once you have a broad idea of who you want to target, narrow this down with specific characteristics or psychographics. Are you looking to target people who work in certain sectors? What is their marital status? What are their interests? Where do they shop? What is their income level?
Answers to these questions may seem unnecessary on the surface, but these factors will all have an influence on whether the individual may become a buying customer. Narrowing down your target to a particular group who are interested in your business will result in more positive responses to your campaign.
2. Review your current customer database
Looking at your existing customer database will give you a good understanding of the characteristics of your customers. Compare the details from your previous customers and see if you can find common traits. If you can find patterns, these are good places to start. A common trait in existing customers will give you an idea of the types of people who are likely to do business with you.
3. Know the core benefits that your product/service offers
To gain interest in your product, you need to look at how it helps the customer. You may know all the features, but you also need to know how these features will improve your customer’s life and business.
Detailing the benefits of your product will give you an idea of the types of people that would get the most value from it. These are the people that you need to target to make your campaign successful.
4. Take a look at your competition
Take a look at who your competition are targeting. If you notice a particular group of people have been missed out, this would be a good time to target them. Reduce your competition by targeting different groups and you could even discover a niche market.
5. Evaluate your decision
Once you’ve decided on a target market, be sure to 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?