Defining Your Target Market
by Alex Mangrolia
With any business it is extremely important that you know who your customers are. Well a lot of you might say “everyone”. My question is really? “Everyone”. You plan to sell to the 2 year old kid, who may not need some type of tax consulting. Or do you really plan to sell to the 60 year old who is retired and doesn’t really even need that new high speed motorcycle, they might, but it truly depends upon your target market.
Defining your target market do for you and your business?
With the way the digital age is now, you can actually target a select group of people. It’s not like when you used to do a ton of mailers or radio ads, and pray and hope that you actually got an ROI. Those radio ads, TV ads and direct mailers cost a pretty penny too. With digital ads, we have a wonderful amount of data! And guess what it’s improving on a daily basis. When it’s all boiled down you will save time and money!
Defining Your Target Market: Check Your Current Customers
The very first step into DeClustering Your Marketing is to take a look at who is buying from you and who is utilizing your services. It’s likely that this will be a good touch point to go off of. Previously, to the digital marketing age, they called this a form of market research and it used to cost a lot of money. Well it’s very cheap now.
Defining Your Target Market: Competitor Analysis
What happens if you don’t know who your potential customers are? You might be just getting started here and you don’t even know who to turn too. Even if you know, still follow this step, it will all workout in the end. The second thing I usually do is check the competitors if no data is available. Everyone has competition, if you’re the only one in the market then either you are the next apple, but even they had competition with Microsoft, or you haven’t done your research. Find out who they are selling too. There is an array of tools that will allow you to “spy” on what type of online ads they are running, what SEO terms they are ranking for, etc. Check their social media, see what they are saying and the response rates, etc. I promise I will get to this in much much more detail.
Next really take a look at your products or services. Make a list of what you offer verses what your competitors offer. Each product or service you offer will have a demographic and psychographic that you are trying to reach.
With all of the products and services, write out how much you plan to charge and what your competitors are charging. This information will really give you if the competitor is a direct competitor or not!
Okay just because the “Competitor Analysis” section seems to be finished, make sure you do ALL of the steps going forward for your company’s product or services and your competitors…You’ll thank me later…Okay so Finally More of the good stuff!
Defining Your Target Market: Demographics
Once you have a list of services and price points put together you want to know the following information.
• Income level
• Education level
• Marital or family status
• Ethnic background
Defining Your Target Market: Psychographics
Psychographics tell a lot about a person’s mental state. Here are the basic factors to consider:
The psychographics will essentially determine the lifestyle and attitudes of your product or service. I will get into more details about this later on, but this is a good start for you to find out where your product really fits.
If you were good about following the above steps you have been doing all of these things for your competitors, now you not only have a true competitor analysis started, yes sorry it’s only started there’s more to it, but you also have your target markets defined!
Defining Your Target Marketing: Decision Analysis
So you think you might have nailed down something of what looks like your target market. You want to check against the following:
• Will I earn enough doing this for the same price point as my competitors?
• Do these people really fit my market segments?
• Do I truly understand WHY my target would buy from me rather than my competitors?
• Can I really reach these people with my message the right way?
• Does my brand reflect this decision? I will get into more branding down the line, but think about this.
What I really want you to do is a full check of what you have come up with. If you feel unsure then check again! There is no harm in checking your work. This is really the foundation of what you plan on building a business on. You don’t want to keep changing halfway down your marketing just because you didn’t go through this exercise because it WILL COST YOU A LOT OF MONEY!!! Why? You will spend Ad dollars, SEO dollars, Social media dollars and more importantly YOUR TIME!!!
Do you need to get more information and a move on your business quick, and I haven’t provided this information to you on this website? Well contact me! I promise I won’t bite and I’ll do what I can to help you out!