A well-thought-out marketing strategy serves as the foundation of every successful product or service. As a small business owner, you might be able to cheaply inform the masses with a general advertising campaign, but this is no way forward in today’s environment. To really make an impact, you need to know exactly who your potential customers are.
This is true for a number of reasons. The most obvious is that you will earn the best possible return on investment from your marketing efforts. Additionally, it will help you determine how to present your brand to the public. Knowing your target audience will also help you identify ways to increase profits. Here’s how to do it.
Current Customers
Who has already purchased from you? Do they share any common interests or characteristics? Pay particular attention to those who bring in the most business.
If you have their contact details, consider sending out a survey to obtain more information about them. Use this as an opportunity to create repeat customers by rewarding respondents with a discount code or special offer.
Product/Service Analysis
Write down the features of your product or service and the benefits they provide. Then, make a list of who have a need that those benefits might fulfil. For instance, a company that makes smartphone cases can offer premium material options. The benefit is a more stylish and durable product, which is something the higher-end market will be interested in.
Demographics and Psychographics
The next step involves building a more detailed profile of who is most likely to buy your product or service. Demographics to consider include age, location, gender, ethnicity, income, relationship status and occupation. Psychographics are personal characteristics such as values, interests, lifestyles, personalities and beliefs.
Dig a little deeper. When is your target audience most likely to make a purchase? What features are they looking for? How do they find information on your particular product or service? Do they read the newspaper? Perhaps they’re more likely to be found on social media. Will you find them at certain events, or are they at home watching television?
Evaluation
Once you’ve narrowed down your target audience, it’s time to ask some important questions. Is there a sufficient amount of people who fit the criteria? How easy is it for them to reach your business? Can they comfortably afford your product or service? How easy is it to stay in touch and inform them about new offers?
If you’re pleased with the results, you can start developing an appropriate marketing strategy based on your findings. Granted, this can be a challenge – especially if you’re unfamiliar with your target audience. You might want to consider partnering up with an organization that specializes in understanding your customers.
For example, businesses that sell to younger generations can use the knowledge and expertise offered by Gen Guru to learn more about their audience and how to market to them effectively.
Don’t forget that your audience can change as your products or services evolve. Staying current with your target market definition will ensure steady progress.
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