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Target Marketing 101

Target Marketing Overview: 

Target marketing involves choosing the market most likely to buy your product or service.  Target marketing is an incredibly important aspect of small business success, in that not everybody will buy your products.  Some will, and they can usually be identified by specific traits they share, such as their demographic profile, geographic location, and lifestyle.  Identifying those attributes that buyers have in common is called market segmentation.  Choosing which segment to focus on is called target marketing strategy.  The key is to know who will buy and why, and to use that knowledge to find more just like them. 

Target Marketing: Two main reasons 

There are two main reasons for target marketing rather than mass-marketing all products to all people. 

1. It is simply very inefficient to try to persuade everyone to buy the same product. Some are more likely to buy what you're selling than others. Also, some people make more profitable customers than others do.  If your resources are limited, (which everyone's are to some degree) you must attempt to spend your marketing dollars wisely.  Therefore, it makes sense to pursue the easier and more profitable customers first.
2. All people are not like.  You can't realistically develop a unique product for each unique customer.  Economies of scale dictate that you keep variations in the product line to a small number.  Segment the market, then use target marketing to reach those to whom your product has some appeal.

The target marketing strategy you choose could be one of the best ways to respond to competition.  The idea is to find a niche that they have neglected, and then develop a product or service offering around filling that void, and a promotional strategy to let the target market know you're there with the answer or solution to their problem. 

Target Marketing Summary: 

Target marketing is an incredibly important aspect of small business development and success.  Find your niche and identify their traits, demographic profiles, geographical location and lifestyle.  Identify the market segments involved, and then utilize a target marketing strategy of identifying specific segments to market to.  Once again, at the very beginning, always pursue the easier and more profitable customers first.

Information from The Complete Idiot's Guide to Marketing Basics

By Paul Susic MA Licensed Psychologist  Ph.D. Candidate President/CEO Susic Psychological Consulting P.C. 

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