As a business owner, don’t make the mistake of targeting “anyone interested in your services,” as this is too broad. Given the current economy, having a well-defined target market is more critical than ever. No company can afford to target everyone (unless your Amazon, of course). However, if you are a small business, you must focus on targeting customers in your niche.
Target marketing is not about excluding people. Instead, it allows you to focus your marketing efforts on a niche market with customers who are more likely to purchase your services. This is an efficient and effective way for small businesses to market their business.
With a defined target audience, it is much easier to determine where and how to market your company. Here we will discuss some tips to you’re your business define your target market.
Evaluate your current customer base.
Have you thought about who are your current customers? What do they buy from you? What is the most common feedback you receive from them? Look for trends and common characteristics amongst your existing customer base. Are they of a certain age? Demographics? Gender? Education Level?
After you’ve answered the questions mentioned above, next consider the psychographics of your target.
Psychographics are personal characteristics of your customers, including but not limited to:
Check out your competition.
Research whom your competitors are targeting and ask yourself, who are their current customers? Don’t make the rookie mistake of going after your competitor’s market. Instead, you should be looking for a niche that your competitors are not currently targeting.
Analyze your product/service.
Take the time to write a list of each of your products or services. Next to the products or services, write the potential benefits of purchasing the product or service.
Once you understand the benefits of each of your products or services, make a list of the type of people who need each product or service and the types of people who would benefit from purchasing these services or products the most.
Evaluate your decision.
Once you’ve decided on what target market you want to focus on, ask yourself the following question.
- How many people fit this criterion? Are there enough?
- Will my target customers need my services? Will they appreciate the benefits of my product/service?
- What drives my customers to make decisions?
- Can they afford my product/service?
- Can I reach them with my message? Are they easily accessible?
Don’t make the mistake of breaking down your target too much. You can always have multiple niches within your business. However, the marketing message may have to be different for each niche you pick. Lastly, make sure you pick a profitable niche. In other words, if you can only find 25 people in your city that fits your criteria, you should probably reevaluate your target audience. Overall, your goal is to find the perfect balance.
“How do I find all this information?” You can hire a market research firm, or you can search online for research. Don’t forget to ask your current followers or customers for comments and suggestions.
Defining your target market audience takes a little time and research. However, once you understand your target audience and customer demographics, you can structure both your print and digital marketing campaigns into marketing messages that will resonate with them.