Three Simple Steps to Defining Your Target Market
The term "target market" is a business term meaning the market segment to which a particular good or service is marketed. Fair enough. But what does that really mean to us as business owners? Get the answers in this article "Three Simple Steps to Defining Your Target Market."
Copyright (c) 2009 Meredith Liepelt
The term "target market" is a business term meaning the market segment to which a particular good or service is marketed. Fair enough.
But what does that really mean to us as business owners?
In my experience, I see that the best use of an entrepreneur's time is spent when they are highly focused and targeted, as opposed to being scattered and allowing the latest and greatest thing to take their attention. This is true for reaching goals, building a team, defining a target market and so forth.
There are many reasons to define a narrow target market, and I will share with you my top three.
It's easier to stand out and be the expert in a narrow marketing than a broad general market. Experts get more media attention, more clients and can charge more.
You will know how and where to reach your specific audience. Being very targeted allows you to be clear in your marketing message. Also, it stretches even most of the most humble of marketing budgets because by putting your business in front of the right audience, your ROI will be much higher.
You can take the time and get to know your target market and learn exactly what their pain is so you can craft a solution that makes them easily say, "This is for me!" So, how does one go about defining their target market? I have boiled this down to three steps.
Step One: Identify specifics about your target market
This is where you go "an inch long and a mile deep" in understanding those who you are targeting. To do that, you need to know these important criteria:
· Demographics - Age, gender, location of business, home, etc.
· Psychographics - values systems, lifestyle choices (TV shows, magazines, podcasts, etc.)
· Position - CEO, Sales Manager, Business Owner, etc.
· Industry - Legal, Healthcare, Service, etc.
· Sample: Married couples between the ages of 35-50 who are selling their home in the 300K-500K price range in Dublin, Ohio.
Step Two: Identify what you will do for your target market.
Answer these questions: What problem do you solve? What will you do for them? Put yourself in their shoes and figure out what they need and why. Do surveys, hold focus groups, call several people in your target market and ask them the same questions so you can uncover the exact needs that you can address.
Sample: I professionally stage your home so buyers can easily see themselves living there. You sell your home faster and for the most money.
Step Three: Define Your Process This is your methodology and how you serve your clients. Do you have a patented step-by-step program? A formula? A process? What is your philosophy and why.
Sample: I use a 150 point assessment for the inside and outside of your home and provide you with the resources to do the necessary work or coordinate the work for you.
Note that your target market will evolve over time. That's normal and fine. Just revisit it once a year to make sure you're on track and providing the right marketing message to reach your market if it has changed.
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ABOUT THE AUTHOR
Meredith Liepelt, President of Rich Life Marketing, publishes Smart Marketing, a free bi-weekly ezine featuring marketing tips, insider secrets and thought provoking articles designed to help the busy female entrepreneur become known as an expert in her field, build trust with clients and prospects and generate more income than ever before. Claim your free subscription today at http://www.richlifemarketing.com .