While everyone talks about target markets and taking aim, not everyone
actually does it. Whether your primary
customer is the merchant, sales agent or referral source, focusing on a
specific target market will create tremendous efficiency. As a small
acquirer, being all things to all people is a “go-out-of-business”
strategy as it spreads an organization too thin. Target marketing is
the only effective way to optimize marketing resources. Your
marketing mix and budget are going to be most effective when they focus
on a selected market. Target marketing is the best use of your most
valuable resources, time and money.
The key to discovering the best target markets is getting to know as
much as you can about prospective customers. The more you know about
your prospects, the better you will be able to make decisions that will
enhance your ability to communicate and connect. One of the best ways
to identify your target market is to look at your existing customer
base. Who will benefit the most from your products and services? Who
are your ideal clients? What do they have in common? If you do not have
an existing customer base or if you are targeting a completely new
audience, speculate on who they might be based on their needs and the
benefits they will receive. You might even want to investigate
competitors or similar businesses in other markets to gain insight.
Establishing an intimate understanding about the needs of your target
market is critical. How will your customer profit or otherwise gain
from using your products or services?
Ask yourself the basic “needs” questions:
- How much can it save your customer?
- How much can it earn for your customer?
- What intangible benefits might customers realize, and is it possible to quantify these benefits?
You must seek to quantify the value of offering a solution to the
prospect. To be successful, you must meet these needs and show a real
benefit.
Once you have determined a good target customer, develop the marketing
mix that will best reach that target audience. The goal is to create
efficiencies in your marketing mix, so start by creating a target
market profile for different segments.
Use these four categories when collecting information to identify and
define your target market:
- Geographics: location, density, climate zone, etc.
- Demographics: business type, revenue, ownership composition, ethnicity, etc.
- Psychographics: general personality, benefits sought and loyalty characteristics of the decision makers.
- Behaviors: customer needs, where they get their information, level of knowledge, use or response to your customer’s product, etc.
The target marketing process allows us to break down these groups of
businesses so we can better understand how to reach them. The more
detail you know about your “ideal” customers and prospects, the better
you will be able to concentrate your marketing efforts, make your best
prospects aware of your products and services, and create the best
return on investment.
All acquirers, big and small, have limited resources. Our goal is to
get the best bang for our marketing dollar. Target marketing allows
you to reach, create awareness in, and ultimately influence that group
of customers most likely to select your products and services, while
using fewer resources and generating greater returns.
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