Steps to Defining Your Target Market
“…There’s an effective way to compete with bigger companies without having to exhaust your business’ threshold to zero.”
Small businesses rely on a well-defined target market to bring in more customers. In today’s economy, shelling out money to target everyone is unreasonable. However, there’s an effective way to compete with bigger companies without having to exhaust your business’ threshold to zero. You can simply do this by targeting your market’s niche.
When you want to target a general audience, simply do not do research. Some businesses say that they simply target stay-at-home moms, homeowners, small businesses, etc… And this is the type of targeting that drops you into the pit of no return. Generalization is old school when your goal is to bring real customers into your door.
When you’re looking to target a particular market, this doesn’t mean excluding a group of people who can’t seem to fit the guidelines. Instead, marketing to a specific audience permits your business to focus on brand messages and marketing dollars. You want to focus your campaign on a community that is more likely to buy. To small businesses, it’s efficient, and in many ways, it is affordable. Simply maximizing your budget to an audience who will listen is better than speaking to those who won’t.
“Generalization is old school when your goal is to bring real customers into your door.”
For instance, interior design companies could opt to target a niche of homeowners between 35-65 of age along with an income of $120,000 or more. Still, this is a generalization of the target. It’s notable to consider going further in markets such as targeting those who are interested in bath or kitchen remodeling. When you break the market, you could potentially see a niche within baby boomers and parents who are constantly on the go.
We strongly emphasize establishing your company’s audience to manage your marketing campaigns. The following are tips on how to be successful in marketing your target.
Who Are Your Customers Now?
Identify your customers now. Why do these clients come back for your products or services? It’s best to find your common interests and characteristics. Find out who frequents your business as people like them could benefit from what you have to offer.
Who is the Competition?
Your competitors are targeting people, and if so, who are they? You may want to find out about their customers. Still, we suggest that you target a similar audience without going after the same one. In this case, you may be able to find an audience that your competition is missing.
Take a Look at Your Service/Products
You want your products and services to stand out. To do so, highlight their features and why they would benefit your clientele. For instance, an online marketing company that offers Seach Engine Optimization services. The benefits from this are that their customers get the online exposure they’re asking for. The exposure via search engines works in a way that generates leads to their market. Having said that, featuring these would be beneficial for both customers and yourself.
When you’ve created a list of benefits for your services, you want to create a list of people who will benefit from this. For instance, an online marketing company might target businesses that are eager to increase their clientele. Even though this may seem like a general target, you now have a foundation.
The Demographics Matter
Another way to target your market is by demographics. When you know the people who might need your services/products, you want to do your research on potential buyers. The following are some information you want to consider:
- Income Level
- Marital Status
- Education Level
- Ethnic Background
The Psychographics Matter Too
Besides targeting the demographics, you want to know your audience’s characteristics. The following are some psychographic information to consider:
How will your services/products fit the lifestyle of your market? When and how will this be beneficial for them? Which key features should you highlight that would appeal to this individual target? Where does this audience go for information? Do they go to community events, read the newspaper or search online?
As a business, remember that you have numerous amount of niches so do not go overboard on targeting your audience. You may want to consider creating different marketing messages for various niches. Again, we suggest that you don’t go too specific since a certain audience might only reach 100 people. Ultimately, this is what you want to avoid.