A small business needs to determine their target market to be able to properly and successfully market to their target audience. It’s often been said that “if you aim at nothing you are bound to hit it.” A target market is something, not nothing. Nothing marketing gets your business nowhere. Target marketing gives you tangible targets of revenue opportunity. Some of the main things to consider when looking for your target market are:
- Geographics
- Segmenting by location
- Demographics
- Sorting individuals by: age, gender, income, ethnic background, and life stage
- Psychographics
- Analyzing the way people choose to live their lives
To properly determine your small business’s target market, you have to know your product/service and how it fits into each segment of the market. The best marketing plan will target a specific area based on the above segments. It is important to carefully build your business around your target area based on the geographic location.
If your geographic area is defined by extreme weather conditions you should match your product to the customer’s needs. For example, in a hot environment it would be wiser to market ice cold lemonade instead of hot chocolate. From a demographic standpoint, the average income of a neighborhood will be a determining factor in your products price. A following website is a great tool to find the makeup of your target area (once on the site, click “zipcode look up”):
http://www.claritas.com/MyBestSegments/Default.jsp
Claritas will determine whether your small business satisfies consumer needs by defining the living standards of the surrounding area. Once you have selected the target group that would benefit the most from your product, it is important to know how to reach this audience. Magazines successfully reach your target because they are made for specific consumer groups. Often times, magazines have established targets such as “families” or “sports” and will reach that target market more effectively. The Daily Titan that is released every weekday on the California State University, Fullerton campus is specifically for students, highlighting local activities and events that appeal to the average college student.
A good illustration of appealing to a target market is seen in a recent Jack In The Box commercial. Jack In The Box emphasizes affordable prices which attract hungry and broke college students. The commercial effectively relates to the college experience and attempts to satisfy the audience’s needs with the “Jumbo Deal”:
The “Jumbo Deal” is an alternative to costly meals and influences students to buy from Jack In The Box. Although this is an example of how a bigger company is applying advertising skills, the same concepts apply for your small business. A company can potentially increase their sales by successfully marketing their product to their target consumer’s needs.
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Note: The preceding post was written and researched by students in my Honors Marketing 351, Fall 2011 class, from the Mihaylo College of Business and Economics, Cal State Fullerton University, Fullerton California. Many thanks to their time, talent, and contributions to both their career and this marketing blog. Go Titans!
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