Do you offer a great product at a good price and there are still few customers? In order for your marketing and sales activities to be effective, you need to talk to the chosen ones - to your target group, hanging the right bait on the hook. How to set a target? Why is determining potential customers so important? The answer is coming!
The definition of the target group (also called target) is simple - they are recipients who may potentially be interested in your service or product. Without setting a target, it is difficult to succeed in sales or marketing activities. The message directed to everyone makes no sense, because it doesn’t bring any expected results - it does not attract attention, does not prompt no one to buy or stop for a moment and familiarize oneself with the offer.
If you sell children's toys, your customers may be almost everyone - parents, grandparents, godparents, aunts and uncles, or friends of a young couple who recently had twins. The advertising message, even the most complex one, will not reach each of these people. If you want your business to be profitable, you need to select the target group from among all potential customers - the recipients on which you want to focus the most.
Target defining is related to other decisions: the shape of the marketing campaign, language and communication channels, store name, interior design, and even location. If your toy store is located at the market square of a small town, there will be several target groups - the customers will be both young mothers who pass by on the way to work, and grandmothers, to whom grandchildren come from time to time. By running a business in a modern housing estate on the outskirts of a big city, you can focus on a more targeted market - young, well-paid parents for whom the quality or design of the products offered is more important than the price. In this case, it will also be profitable to expand your business with online sales.
Entrepreneurs are often afraid of targeting, because they think it will limit them. Focusing on the target group does not mean closing to other clients. You can finally present an interesting offer to everyone who visits your store. However, the main source of profits will be the target audience - most interested in your offer, and therefore susceptible to advertising and willing to shop.
Targeting is part of a broader strategy - market segmentation, i.e. separation of various customer groups in terms of needs, preferences or financial capabilities. To determine the target audience, you need to imagine a model recipient. Virtually everything matters: the place where he/she lives, gender, age, income, education, interests or lifestyle. The criteria that are taken into account when characterizing the target are divided into geographical, demographic, psychographic and behavioral.
Geographic and demographic features are easy to grasp. However, they do not show everything. Therefore, the group of potential recipients should also be analyzed in terms of psychographic (lifestyle, personality and beliefs) and behavioral criteria, i.e. how customers make purchases. Where to get this type of information?
The Internet helps a lot: thematic forums, social networking sites, opinions and reviews websites, as well as analysis of competition activities. In the case of e-commerce, the matter is simpler - you can use all kinds of statistics that show at what point in the purchasing process customers gave up buying a product or finalizing a transaction. By analyzing these criteria, you will learn what your potential customers need and what problems they face, and then provide them with the right offer - tailored to their expectations.
Target defining is of great importance for marketing activities. If you know who your customer is, you will correctly choose the language and communication channels - so that the message reaches the recipient perfectly. You will create an offer that responds to the needs of your target group and use convincing arguments encouraging to use it. So you won't waste time or money on running ineffective campaigns. By specifying a target, you can also check who is your competition on the market.
Wanna know more? Follow us on Facebook and stay current with new tips we share every week! Take your business to the next level with us!