Why You Need a Target Market
Copyright 2006 Jennifer Givler
One of the first things you must do for your business is define
your target market. I hear business owners tell me all the time
that "anyone can use their products," or "they don't want to
narrow down their customer base by excluding groups of people."
I understand that there is fear around excluding a portion of
the population - you feel it's money walking out the door. But,
do you really want to try and be all things to all people? When
you narrow your focus and choose a target market, you will be
able to market your business more effectively.
Here are three reasons a target market will help you work
smarter in your business.
1. Spend your advertising dollars wisely. We all know that ads
must be seen at least 7 times before it even registers with a
potential customer. If you market to "everyone," where are you
going to place your ad to ensure that enough people see it 7
times? That is, enough people who are then willing to try your
products or services. That's a lot of advertising dollars spent
for simply guessing where to put your ad.
2. Know your customers. Customers also want to know "what's in
it for me?" How do your products and services benefit them? With
a target market defined, you can determine what to talk about
with potential customers. With a defined target market, you will
be able to discuss specifically why potential customers will be
interested in your products or services.
3. Hear it from the source and meet their needs. Once you choose
your target market, do some research to determine what other
interests the people in your niche have. Find out where they
like to hang out online and offline. Start hanging out in those
places too and get to know the people. For example, if you
product appeals to moms, join a few mom's groups. When you
connect with them, ask what their needs and concerns are. This
is a great way to conduct your research - nothing like getting
information directly from the source. You can then use that
information to further develop products and services for your
business.
Truth be told, I was terrified to choose a target market. I felt
that I would be limiting myself. I too, was afraid that I would
lose out on income. The truth is, because I chose a target
market, I was more successful and actually gained more business.
My advertising efforts were focused, and I positioned myself as
someone my target market could trust with their needs. And,
believe it or not, I attracted other projects and clients that
aren't even in my target market. Do yourself a favor - make your
business life easier; choose a target market now.