According to The Balance, target marketing involves breaking a market into segments and then concentrating your marketing efforts on one or a few key segments consisting of the customers whose needs and desires most closely match your product or service offerings. Basically, any business’ target market is a group of people that can be expected to buy its products and services. The people that comprise your target market have similar purchasing desires; for example, Millennials who can’t get enough of technology will look for the best products in that arena. But how do you, as a small business owner, find them? You need to target them.
First and foremost, you should clearly define your target audience. Why should they buy your products and services? Think niche. Who do you want to sell to? The aforementioned Millennials? Perhaps high-net-worth older adults? People in a specific town, state or region? By targeting exactly who will most likely buy what you’re selling, you can begin building your brand and reputation, which leads to referrals.
However, keep in mind that just because you’ve defined your target market they will not automatically flock to your brand. You will always have competition. In order to maximize sales, you not only have to define your target market, you have to define your competition. You need to be able to answer why your products and services are better suited for your target market than those of your competitor(s). What unique capability do you offer that the competition does not? If you don’t know why that is, your target audience won’t either, and that means you didn’t define your target market clearly so it’s back to the drawing board.
Target marketing also allows you to ascertain if there is really a need for your products and services with the people and places you assume will be your target market. If your assumptions are correct, you can potentially become the expert for that niche by focusing your marketing there, thus increasing sales as well as your efficiency.
When target marketing, always keep in mind that if there is no need for your products and services, you won’t get the attention you desire. Small business owners that implement successful target marketing campaigns know that only certain types of people will buy their products and services. By determining who those people are, you can turn them into clients.