 Identifying Your Target Markets
Your Step by Step Guide
By: Marna Courson
Whether you’re starting a business or preparing to launch a new product or service, think like a good Scout: Be prepared. The key to your preparation is developing a marketing plan to communicate with and attract the people or organizations that will buy your product or service. Before you can develop your strategy, you must identify the people or organizations that likely would buy your product or service Ð your key, or target, markets. Once you’ve identified those markets, you’ll be able to develop a creative, effective marketing plan. Identifying Key Markets
Know your customer intimately. Learn everything you can about the typical demographics of your industry’s clients. There are myriad ways to obtain demographic information. - Read industry periodicals to see what the experts say.
- Check industry related websites. Whether you’re selling tennis shoes or investments, there is a website that tracks your industry with evangelical frenzy.
- Learn from customers of competitor firms. A blind survey is always feasible.
- Try to gain tips from Ð and about Ð the competition. Vendors can give tremendous insights into your market. Industry colleagues outside of your market area may be forthcoming with information.
- If your business is established, survey your current customers for their insights regarding your planned new product or service and its launch.
Composite Profiles
Compile your information in a format that gives you a profile of four or five amalgam clients. Identify from all the information available if there are any common customer traits. Are there income, age, or education similarities? Do you detect race or gender trends? Discern as much as possible about your average customers to understand what they’ll look for in your products or services. Key Differences
Once you have your amalgam clients analyzed, you need to figure out the differences between your key customers. Do older women spend more time deciding whether to buy? Do middle-aged couples quickly grab a few inexpensive items and leave? Profitability
Determine which clients will be most profitable. This could mean you are looking for frequent, fast, cheap sales such as those at a convenience store, or it could mean a few large, expensive sales. Most likely you will end up with a mix, but your best customer will be your target or key market. Geography
Be certain your target clients reside or do business in the area where you plan to open your specialty bakery, or that your business is within the range that prospective customers are willing to travel to your retail outlet. Deliverable
How practical will it be for your client base to reach across five states? How far and how fast must your sales people travel to meet prospective customers? How ready is your supply chain to get the products to customers who order them? If you’re selling products on e-Bay, geographic constraints may not apply. Prioritize
You now know who likely will be your most profitable market segment. Consider this your key or primary market. But there are market segments (young college-aged men who like paintball?) that may be secondary markets. These secondary markets also may be viable, but if your budget is like that of most businesses, you can’t market to everyone simultaneously. Go for your primary market first. Delay your secondary target market. Eventually you even may be able to focus on a tertiary market. So, now you have a composite picture of your ideal client and the geographic area, if applicable, that your business will serve. You also have insights from people already in your field. It’s time to put together that marketing plan, with your aim squarely on your ideal client. Once the plan is designed, prepare your marketing materials. Then with your efforts focused, pull the trigger to launch your new business, product, or service. Marna manages CCI’s business and development, and leads the firm’s strategic communications planning and crisis management teams.
Article Source: http://www.flourishmagazine.com
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