Whether you are a start-up, a small/medium sized company, a conglomerate or just a “one man show” it is equally important to know who you want to buy what you offer, in other words who is your “target market”. Think on this for a moment, how accurate would you be in hitting the centre target of a dart board wearing a blindfold? I am sure you would agree you would be far more effective with your eyes open and focused on your target. That simple analogy proves the idea that failure to focus your strategy towards your intended customer will yield poor results of limited sales and guaranteed losses.
There is a direct link between your target customer and their spending power this means your product/service price is an important factor. Selling a product for children to a “single parent” that is high priced can be a misfit unless there is a necessity. Similarly, selling something low cost to a wealthy group maybe a challenge as it can be perceived to be low quality. You can combat this problem by personifying your target market. You can do this by listing name, age, sex, marital status, profession, average income, likes & dislikes (i.e. favourite holiday destination, movie, song, food). Just at this point you may be asking “why am I doing this, who cares what customers eat, I just want their money”.
Orvel Ray Wilson on Why Customers Buy says “Customers buy for their reasons, not yours.” You are assessing your customer to understand their needs and create appropriate marketing strategies to capture your target market. This will save you time, money and help you avoid targeting to the wrong people. Now you’ve done all this work and it’s time to be brutally honest. Ask yourself; Are there enough people who need your product/service that fit into your target market? Will they benefit and see value in it? Do you understand what drives their purchasing decisions? Can they afford your product/service? Is your marketing message tailored to this specific group? If you’ve answered yes to these questions after doing your analysis, go ahead and give the stamp of approval that says “you are my target” and then tailor your marketing/sales approach to your target for future growth and development of your business.
Targeting a specific market does not mean that you will exclude customers that do not fit, however, strategically selecting your target market allows you to focus your marketing budget, and brand communication towards an exact market that is more likely to buy your product/service. This is a cost effective, realistic, and efficient way to reach customers, generate profits and grow your business. Don’t hit and miss, identify and focus to be successful.
