It's important to understand that marketing plays an intricate role in how you communicate with your customers and it's how you get them excited about purchasing your products and/or services. Marketing is a constant effort as you launch, stabilize and expand a successful business.
Tip 1: Know Who Is Buying From You
Do you have enough people buying from you? In addition, are you connecting with the right customer? An important point in making this all work for your small business is understanding YOUR target market.
Here's why having a target market is paramount! Say you're a realtor and you want to work with newly married couples interested in becoming first-time home buyers. You are going to craft a marketing strategy specifically for that market. For instance: host seminars with topics such as improving your credit score; budgeting to afford a new mortgage; calculating how much you need as a down payment and what your home inspector should include in a report, etc. By defining your target market, you are ensuring the success of your small business! If you decide not to, then it can prevent you from reaching objectives, such as:
- Increased sales
- Brand awareness
- Market share
Tip 2: Learn to Pinpoint Your Target Market - 4 Critical Identifiers
- Demographics: It is critical to learn specifics about your potential customer. This includes their gender, age, career, income, size of household, and education.
- Geographic: Understanding where your potential customer reside, size of the area, density, and climate zone.
- Behaviors: Knowing their needs, information sources, attitude, use or attitude towards a product or service.
- Psychographics: The general behavior, personality, repetition of need, life-style, benefits sought, rate of use, and loyalty characteristics of your customers.
Tip 3: Research, Research & Research Some More!
When conducting market research, you can expect to spend significant time and effort in researching the who, what, where and why of your target. And no, this is not a one-time process! You will need to revisit and research regularly. Why? Well, if you don’t stay abreast of what’s happening to the size and structure of your market, you’ll lose contact with your existing customers and miss chances to attract new ones.
Tip 4: Can You Identify Your Ideal Client? Ask Yourself:
- Who are your customers?
- What are their needs and desires?
- Where do they reside?
- Will they purchase the type of products or services you are selling?
- Are your prices measurable in quality and value as your competitors?
- Will you have an effective promotional program?
- Whether your business is local or virtual, are you easily accessible to them?
Tip 5: Create a Client Profile
Don't make the mistake of many business owners and skip this very important first step. Though, not done on purpose, it happens when you believe that "everyone" is your customer. By realizing the importance of having a well-defined target market, the questions above play a crucial role in creating a client profile.
The bottom line is that not having a target market can be costly in time and money spent on ineffective advertising and marketing. Ultimately, this can have a dire effect on your return on investment (ROI).