Target Marketing: Why You Need to Do It Now!
Businesses that try to be everything to everyone typically fail. In today’s economic climate, having a well-defined target market is more crucial than ever before. Many of the world’s successful, all-encompassing brands, such as Amazon, didn’t start out that way. They began with a specific focus (Amazon started out selling just books) and built a strong customer base before targeting broad markets like they do today.
Whatever industry you’re in, you likely have a significant amount of competition. By breaking the market into various segments and concentrating your marketing efforts on one or a few select segments, you can set your company apart and attract more customers’ attention. If you don’t differentiate your business in the marketplace, price will be the primary motivator of the customers who come to you and price shoppers are obviously looking for the cheapest option. But if you’re considered an authority in a particular niche and the best at what you do, customers will be willing to pay a premium for the products/services that you offer.
Target marketing makes it easier and more cost-effective to promote, price, and distribute your company’s products/services because it gives your marketing activities focus. But many business owners struggle with target marketing because they have difficulty turning down business opportunities, especially when they’re just starting out.
How to Find the Right Market to Target
There are two types of target marketing methods to consider:
- Demographic segmentation – based on measurable statistics, like age, gender, location, marital status, and income level
- Psychographic segmentation – based on personal characteristics, like values, personality, attitude, interests, hobbies, and behavior
The market is vast, so you need to conduct market research to find your ideal target market. You can classify markets based on how profitable they are or choose markets based on your interests. You can also identify emerging growth markets and areas in the marketplace that need your products/services and fill that need.
No business can afford to target everyone because when you try to appeal to everyone, you appeal to no one. By targeting a niche market, smaller businesses can effectively compete with large companies. Target marketing doesn’t mean that you have to exclude people who don’t fit your criteria from buying from you, although some customers might feel left out. Target marketing allows you to focus your marketing dollars and brand message on a specific market that is more likely to buy from you than other markets. Simply put, target marketing is an affordable and efficient way to reach prospects and generate leads.