Target marketing can be defined in several ways. The simplest way to think about target marketing is to picture a target. Where is the ideal place to hit the target? Is it around the edges, close to the middle or direct center… Bullseye! …
Who Is Your Target Market?
Yeah! this may seem obvious but for many small business owners, their goal is to yell at everyone breathing. We call this throwing Stuff against the wall hoping, wishing, and praying something will stick.
Continue to settle in as we explain how to increase sales, attract new customers and aim specifically to the customers that best resonates with your product or service. Remember, when you talk to everyone you talk to no one.
One study shows when screaming for help if a person screams someone help!… everybody looks around for someone to help. But if they single-out one person, it’s more than likely, that one person will help.
Sticking with the bullseye scenario, the closer you get to the center of the bullseye, the better your chances of marketing to your target market. This saves time, money and resources. Hence increase profits and decrease wasted marketing efforts.
In this article, we will continue to unrobed the hidden gems of target marketing. We will break down the three segmentation of target marketing, how to decide which social media platforms you shouldn’t use, and a few other tips to help you become a marketing ninja!
In the next 5 minutes, expect to double your marketing IQ … let’s dive in!
How to Identify Your Target Market?
The first order of business is to identify your target market. Who’s in the center of your dartboard? Who are they, how they look, what are their likes and dislikes? Your job is to find out as much as possible about your customers or potential clients. The more you know… the more you grow!
Example: If you are a restaurant owner who specializes in fine dining that serves exotic foods and drinks, you probably wouldn’t place door hangers in a low-income housing community because they assume they can’t afford your services, probably won’t like your food, and won’t become long-term customers or ever visit your establishment.
A better idea is to conduct a little market research to ascertain who’s your customer (target market). You can start with a few guesses: your ideal customer may also enjoy playing golf and tennis, maybe affluent, educated, socially and culturally diverse and enjoy travel, for starts.
5 Creative Ways to Snuff-out Your Ideal Customer
- Frequent your competitor’s place of business; see who’s coming and going
- Take notice of the other businesses surrounding the other establishments
- Take a survey either online or in-person
- Read restaurant magazines, this will give you a great example of what your ideal client looks like and little about their spending habits.
- Talk with friends and family; ask questions about their food likes and dislikes, income level, spending habits, how frequently they eat out, and what types of food they prefer.
Breaking a Market into Segments
Another component to target marketing is called marketing segmentation. Marketing segmentation is one way to differentiate your existing customers into different categories. This technique identifies your existing customer’s spending habits, behavior, likes, and dislikes. Your current customer’s footprints leave strong patterns and clues. Groups of customers will prefer one service over the other.
This information can also be used for specials, product selections, coupon ideas, promotions and give always and many others.
Segmenting your customers will save time and money, reduce the chances of sending inappropriate marketing messages, and give you a better ROI on all marketing channels. How embarrassing could it be to send a vegetarian, a pull-pork Monday special coupon? Or in contrast, to send a meat lover a vegetarian coupon. By separating your customers, you’re concentrating your marketing efforts on one or a few key segments consisting of the customers whose needs and desires most closely match that product or service offerings.
Another example: Say you’re the owner of a corporate catering business. I instead of a generic radio blast to anyone that’s at ear distance, a better advertising budget-friendly method is to advertise B2B (Business-to-Business). Streamline your advertising efforts on the radio or direct mail to local business owners and entrepreneurs. This will increase your ROI. Don’t forget Facebook business owners. This would most definitely increase your ROI (Return on Investment) by targeting more of your ideal customers.
Social media platforms, such as Facebook, LinkedIn, Twitter, and Instagram, have sophisticated options to allow businesses to target users based on market segments. For instance; a bed-and-breakfast business would target married Facebook followers with an ad for a romantic weekend getaway package.
LinkedIn, on the other hand, is more B2B oriented, so you can target businesses using a variety of criteria such as the number of employees, industry, geographic location, and so on.
3 Most Common Types of Segmentation
Demographic segmentation is the most important criterion for identifying target markets. These are qualitative factors. The factors are based on measurable statistics such as gender, age, income level, marital status, education, race, and religion. For example, a lawn care service may want to focus its marketing efforts on a subdivision inhabited by a high percentage of older residents or high-income earners.
These statistics are vital to most businesses before making marketing decisions. Marketing incorrectly to your target market is like throwing money out of the window, or likened to selling wine to a baby.
Geographic segmentation was covered earlier in the low-income housing community example. However, geographic segmentation also involves segmenting the market based on home address, neighborhood, postal or ZIP code, area code, city, province or state, region, or country.
Geographic segmentation relies on the notion that groups of consumers in a geographic area may have a specific product or service need. For example, there’s a company online that sells potato guns; the owners live in the Midwest. From my understanding, the business does very well financially. Their product probably isn’t as popular in metropolitan areas; therefore, they should focus efforts in the Midwest.
Psychographic segmentation divides the target market based on socioeconomic class or lifestyle preferences. The socioeconomic scale ranges from the affluent and highly educated at the top to the uneducated and unskilled at the bottom. A great example of psychographic segmentation of affluent and highly educated consumers …the buyers of designer brands, Gucci and Chanel purses and so on.
Categories of Social Classes UK-based National Readership Survey:
|Social Grade||Social Status||Occupation|
|A||Upper class||Higher managerial, administrative, or professional|
|B||Middle class||Intermediate managerial, administrative, or professional|
|C1||Lower middle class||Supervisory, clerical, junior managerial, administrative, or professional|
|C2||Skilled working class||Skilled manual labor|
|D||Working-class||Semi- and unskilled manual labor|
|E||Subsistence class||Unemployed, seasonal, or casual|
The lifestyle preferences classification involves values, beliefs, interests, and the like. Examples of lifestyle preferences are pet lovers vs non-pet lovers; suburban lifestyle versus country living; green living and so on. Psychographic segmentation is based on the premise that the choices people make when purchasing goods and services reflect their lifestyle preferences or socioeconomic class.
Target Marketing Case Study: McDonald’s
McDonald’s has one of the most defined demographic target marketing success strategies than any other company. Their initial products were designed and marketed to children, teenagers, and young urban-dwelling families. The Golden Arch is excitedly recognized by small children. Mickey D’s Play Place, parties, and toys are created to ensure a marketing edge to their ideal customer.
According to QSR Magazine 2017, a change is and has taken place. Millennials are surpassing baby boomers, which has forced McDonald to do an about-face.
Since 2016, McDonald’s sales have declined. This decrease forced them to perform market research to investigate what the problems or issues were. The research uncovered there’s a new interest in the town, and it’s called healthy eating. The millennials are demanding healthier choices, WIFI, upscale drinks, and desserts while waiting as the little ones play.
Conclusion: Target marketing is imperative for effective advertising. It’s a sure-fire way to out -market your competition, save money, and streamline marketing endeavors. Incorporating the three marketing segmentation factors will bring greater returns.
So, before spending a mint on social media marketing, radio, newspapers, or any other marketing medium, proper marketing research is vital. Your goal is to speak as succinctly as possible to those that best match your products and services. Targeting your ideal customers is key to a massively, successful, income-generating business.