In order for your business to have a solid foundation, you must take steps to determine your typical customer and develop your marketing strategy around them. This is more important than ever as the economy slowly rebounds. It is a simple fact that you cannot target every type of person. Additionally, if you are the owner of a small business that tries to compete with large corporations, you can create a successful target by utilizing niche marketing.
It is common to hear businesses state that they target any person who is interested in their services, while others target moms, small business owners or pet owners. However, as good as this sounds, these targets are still too general and expansive to be successful.
Don’t Forget About Those Outside Your Target Market
Even though you want to create a specific target market, this does not mean that you exclude those who do not reside within your target. What this type of marketing allows you to do is completely focus the money you have for advertising, promotion and marketing on the market that is most likely to produce interested and profitable customers. While this marketing strategy does not mean to exclude anyone, it can help reach those individuals who are already interested in what you have, which in turn can help to generate a larger amount of business. When you define the actual target audience for your business, you will be able to create a marketing strategy that is custom for your business.
What Do Your Customers Have In Common, And How Can You Use It To Your Advantage?
First, you should utilize the common characteristics of your current customer base. This may require some observation and research, however done successfully can help you determine the type of person to target that would benefit from the product or service you offer. Once you have learned about your customers, look into the customers of your competitors. Also, view their advertising methods to determine the type of person they are trying to attract. However, do not try to reach the same people; try to find a unique niche market that you can have all to yourself.
Who stands to gain the most from your products or services?
Next, undergo an in-depth query into the benefits your product or service has to offer. Write down these benefits and then determine who would most likely utilize these types of benefits. This is a great way to determine different niches to target. Along with common characteristics and buying habits other factors to consider when determining your target market are the demographics of the people who will most likely benefit from what you offer. This can include: age, location, gender, income and education level, employment and family status.
At this point you should have a pretty good idea of the type of person that will benefit most from your product or service. Now you should reevaluate to determine if this is the target audience you want to aim your marketing towards. To do this consider the following 4 things:
- Are there enough people in your chosen niche to be profitable?
- Does the target audience you chose reap benefits from your product?
- Is the price point both affordable and competitive?
- Is your message able to reach your target audience?
Remember, determining your market is the hard part. Once you have done this you can seek out the types of advertising that will reach them. Also, once the market is defined you can save money by only sending mail, email and other forms of communication to those within the target. This strategy has been proven again and again and can work for both small and large businesses as long as your website hosting supports the market you are trying to target.