The Target Market Strategy Tips You Need to Know
Given the upheaval in the marketing community over the last 18 months (thanks a heap, COVID), it should come as no surprise that catering your marketing campaigns to those most likely to buy is more important than ever. Many small businesses continue to struggle to stay afloat, so it is critical that the investment owners make in their marketing campaigns offers a significant ROI.
One strategy that can increase the likelihood of your campaign’s success is the use of target marketing.
What is target marketing?
Target marketing involves finding that group of customers who will be most receptive to your marketing campaign. Some business owners make the mistake of adopting a “we-cater-to-everyone” approach with their marketing—this is a mistake. There is simply no way to create a product or service that everyone needs to the same degree. And as is the case with most small business owners who are likely competing with big box businesses, it makes no sense to waste precious resources marketing to people who are unlikely to have any interest in your product.
Target marketing focuses your efforts on both established and potential customers who are more likely to buy from your business.
What’s the difference between target marketing and demographics?
Though the two terms are sometimes used interchangeably, there is a difference in granularity. Creating a target market is the end goal—demographics are the information we use to create the target market.
Demographic information is quantifiable—those little details that give us a clear picture of who our customers are. Demographics usually include information like age, gender, income, location, and education level.
Once you know the demographics of your customer base, you can begin creating target markets…and you may likely have more than one. Let’s say, for example, after analysing demographics you find that your customer base includes a large number of single men in their 20’s without a college education. You may also have a substantial group of married, retired men in their 70’s. Target marketing allows you to customise the marketing material for each market based on the demographic information you collected.
Tips for Defining Target Markets
1. Analyze Current Customers
If you don’t already have demographic data on current customers, now is the time to collect it, and the easiest way to do that is in the form of a survey.
Emailing a survey to your current email subscribers allows customers to opt-in and share their information willingly. If you’d like to get information outside of your established customer base, consider asking social media followers to complete your survey.
Transparency is key here, so be up front about why you’re asking. It’s also wise to let people know the time commitment up front. How long will it take them to complete your questionnaire—three minutes? Five? Telling them how quick and easy it will be to answer the survey increases the likelihood they’ll participate.
Finally, a little incentive can also increase the number of responses you receive. Consider offering participants a free downloadable pdf with valuable industry tips or an exclusive coupon code to be used on your goods or services.
2. Identify Target Markets Using Demographics
Now that you’ve received demographic data back from your survey, use it to identify target markets within your customer base that align with your product or service.
If you own an urban streetwear company, you’ll likely target young, primarily male customers under the age of 25. If you have a luxury travel planning business, you may choose to target customers over 40 who make over $100,000 each year.
3. Dial In Your Marketing Strategy Based on Your Target Market
Unless you’re going with a broad, mass-marketing plan, now is the time to use the information you’ve uncovered to create well-branded marketing strategies based on the targets you’ve identified.
Deciding which social media platform you’ll use as part of your marketing campaign is a great example. Those urban streetwear customers might be hanging out on Insta or TikTok while your luxury travelers may be partial to Twitter. By knowing which platform your audience prefers, you can funnel your marketing dollars there, creating a campaign that will likely feel personalized to those customers.
Business owners are always looking for ways to increase sales and learning how to use target marketing can make that happen. Taking the time to get to know who your customer is a critical component in creating an appealing marketing campaign that will draw them in and lead to sales.
If you’re interested in nailing down the target audience of your business but want a little help, contact us at Digital Canteen. Our team will carefully analyse your customer base and help you craft a marketing campaign your customers will love.
Thanks for reading,
Digital Canteen Team