Chase

In our current economy, having a well-defined target market is more important than ever. Pinpointing your market narrowly takes a little more effort but you are far more likely to make a connection which results in a sale. Targeting a specific market does not mean that you will exclude people that do not fit. It means that you to focus your marketing dollars and brand message on a specific market that is more likely to buy from you than other markets. This approach is a more affordable, efficient and effective way to reach potential clients and generate business.

Here are some ideas you can use to help you define your target market.
First, look at your current customer base. Make a list and ask yourself or them why do they buy from you? These become the psychographics you use later. Look for common characteristics and interests. Which ones bring in the most business? See if these characteristics can be grouped into segments. What other people like them could also benefit from your product/service.

Don’t overlook your competition. Who are your competitors targeting and how are they doing it? Take a look at their customer base, not that you want to steal their customers but with an eye to an overlooked niche that you may exploit. More importantly, you will find those most successful in your industry and see how granular they are in their marketing. This may give you a competitive edge.

Analyze your product/service and make a list of each feature of your product or service. For each feature, list the benefits it provides and sub benefits of those benefits. Then make a list of user types who have a need that your benefit fulfills. This is still too general but you now have a base to start from. Now choose 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 buy it. Think about the following factors:

• Age
• Location
• Gender
• Income level
• Education level
• Marital or family status
• Occupation
• Ethnic background

Don’t forget the psychographics of you identified earlier. Psychographics are the personal characteristics of a buyer including such things as Personality, Attitudes, Values, Interests/hobbies, Lifestyles and why you liked doing business with them.

Ask yourself how your product or service will fit into their lifestyle. How and when will they use the product? What features are most appealing to them? What media do they turn to for information? Do they read the newspaper, search online or attend particular events?

Once you’ve decided on a target market, it is time to do some evaluations. See if there are enough buyers that fit your group to support your efforts. You can have more than one niche and probably should have. You need to ask the question: Can I reach both niches effectively with the same message? If not maybe you have broken down your market too far.

Researching for the target market is a game in motion. A few years ago the over fifty group preferred Geritol, today they prefer rock and roll. You may find a man in his 60’s just married with a toddler rather than out in his motor home visiting every state in his retirement. People in their 30’s may still be living at home. Tools you use for your research may vary but a good place to start is with our old friend Google or free radio studies done by Arbitron. Pew Internet and Scarborough research each publish reports regarding internet use among various demographics. Some are fee based and others are free, you will be surprised at what Google can turn up.

To be sure, defining your target market is the hard part. Once defined, it is much easier to identify the media type to use to reach them and the marketing messages that will be relative to them. Save money and get a better return on investment by defining your target audience. Next time we will look at some ways to develop a marketing message and AGM

Share your ideas! What challenges have you faced when defining your target market? What tools did you use to research your target market?