Targeting the right people is an essential element in every marketing plan. No business can afford to target everyone, but for small businesses targeting a niche market is a matter of success or failure.
What’s your target? “Homeowners,” “Moms of teens,” and “Working women” is too general. Narrowing your marketing target allows you to focus your money and message on a specific group more likely to buy from you. You don’t have to turn down customers from other groups, but focus your efforts on a narrow audience.
Look at your current customers.
Who buys from you, and why do they choose you? Look for common characteristics and interests. The customer characteristics are called their demographics. Demographics include age, sex, education, profession, and location. Behaviors are called Psychographics and include factors such as personality, interests, values, and buying patterns. Focus on your most profitable ten customers. Write down all the demographics you know about each and see if you find any commonalities.
Review your products or services.
On a list of what you offer, list the benefits next to each. Next, add the benefits of the initial benefits. For example, the benefit of a professional wardrobe is a boost in self-esteem and image. These benefits, in turn, can encourage visibility, credibility, sales success, add to perceived company value and maybe even get you a promotion!
Who needs the benefits you offer? These people are your target. How does your product fit into their life? What features do they find the most beneficial? The answers to these will help you determine the message for your advertising.
Check the competition.
Who does your competition target precisely? You can learn much from what another company considers their niche and how they reach them.
Double-check your chosen target.
Once you’ve decided on a target market, think on it a bit.
- Are there enough people who fit your target profile?
- Will the target feel a need for your product?
- What factors will go into their decision to buy?
- Is the product priced for this group?
- How can I reach my target market?
Keep in mind that you may have more than one target market. For example, one based on the benefits for new homeowners and one based on new parents. Your advertising message will be different for the two separate targets; keep them separate in your mind to have more success catching their attention.
For more resources, check with the business development staff at your library or small business administration, read about ways to reach your new niche in finding a new audience, or check out the resources listed in this article by Inc.
