Are you trying to build a solid foundation from which to grow your business? If so, you need to first find out who your target audience is; and, then tailor your marketing pitch accordingly. Targeting the right audience can spell the difference between success and failure. In fact, studies reveal that companies that try to be all things to all customers usually fail.
With the current economic situation, it has become all the more important to have a well-defined target market. You simply cannot afford to target everyone. By focusing on a particular audience, you are giving your small business a chance to stand out and be able to effectively compete with larger competitors.
Now, if you're not differentiating yourself in the marketplace, i.e. you have nothing unique or new to offer your customers, your customers will look at your price as the main motivator for buying from you.
Use these five strategies to help you find your target audience:
#1: Check out your current customer base
Determine who your customers are and why they buy from you. Many small-business owners think they know what their customers want without doing any research. Until you’ve made done a thorough analysis of your customer base; your pre-conceived ideas are nothing more than fantasies and have no place in a real business setting.
When analyzing your customer base, look for common interests, buying patterns, and characteristics. Determine which types of customers generate the most business. Also, consider whether other groups of prospective customers might benefit from your product or service.
#2: Learn from your competitors
Who are your competitors’ current customers? Why are they buying from your competitors? These are just a few of the questions to ask. Once you find out the answer, do not go after the same market. The idea is to find a niche market your competitors may have overlooked.
#3: Find the perfect customer group
Once you have determined who may have a need for your product or service; you need to dig deeper and find out who is most likely to buy it.
Consider the following demographic factors:
- Income level
- Education level
- Single or married
- Ethnic background
#4: Break down your target audience further
After you've identified your group of prospective customers, you need to classify them further according to personal characteristics such as:
- Hobbies and interests
Find out how each sub-class will respond to and use your product. Do your offerings fit their lifestyle? What is it about your products/services that your prospective customers will find most appealing? Asking these questions will help you uncover certain needs that no other competitor has met adequately before. These newly discovered form the foundation of your competitive advantage.N
#5: Evaluate your decision
After thorough research and analysis, you may discover that you have more than one niche. In that case, you need to consider whether each niche should have its own marketing message or whether one campaign strategy will work for all of them.
It all boils down to differentiation. In order to give prospective customers a reason to buy from you and not from your competitors; you must be able to effectively differentiate your business from your competitors.