In today’s world, finding the right target market for your products or services is vital. No-one can afford to target everyone; it is quite simply a waste of both your time and financial resources. The answer? You need to refine your market and focus your efforts.
Defining your target market is a process which so many small businesses find so difficult to grapple with. Yet it is the way in which small business can compete with the larger enterprises. I hear so often: “I target all businesses in my geographical area” So, if this is you, you are not alone. But that target is far too wide and you should consider refining it.
Fear of missing out is the sentiment that seems to come into play here: the thought process being that if you target a particular type of person then you will alienate someone else. If this is what you have been basing your assumptions on, let me reassure you. In actual fact, what good targeting actually does is to give you the opportunity to focus your precious time and resources on the customers that are the most important to your business. What are the questions you should answer about your target market?
1. Who are they?
Quite simply, your target market is the customers that are most likely to buy from you. The ones that are MOST likely to want the products and services that you are offering. Focussing your attention and efforts on these people is a much more efficient, effective and affordable way of growing your business.
2. Where are they?
Where do they live? In which channels would they prefer to make a purchase? Online or in store? Where do they work? Does this affect the product or service that you offer?
3. What defines them?
What are their particular interests? How is this audience different from others, and what other products are this market interested in buying?
4. How do they buy?
Think in terms of your customer and how they are likely to find you and your product or service. Imagine yourself in their position… how are they going to do their research, what media channels will they use? How long is their decision-making process and who else are they likely to involve?
5. When do they buy?
Is there a particular trigger that you are able to recognise? Are there particular times of year or of the day? Do they repeat purchase or buy as a one-off? When do they first come into contact with your business and when is it best for you to keep that conversation going?
Why would someone buy your product/service and importantly why should they buy from your rather than your competitor. What are their motivations to buy, and importantly, why wouldn’t they? Is there anything that you can do to help them overcome these obstacles?
Finally, evaluate your target market.
But don’t stop here. Once you have done this you will want to also want to do a further couple of checks to ensure that the market that you are looking at is realistic for your business and your business model.
7. Are they reachable?
Are you able to reach your market with your communications? Can you do so cost effectively? And how easy is it to physically deliver your product or service to them?
8. Are they valuable?
Is the market large enough for you to be able to make the value of sales that you are looking for? Is this market willing and able to pay the price that you are looking for?
Answer these questions and you will be well on your way to delivering the right messages to the right people at the right time and at the right price. This is how effective marketing is achieved.
Find this blog helpful? If so, please share with your friends and colleagues. Want help with defining your target market? Why not get in touch for a free no obligation conversation?