To ensure that you reach the sales goals that you have set it is important to know who your target market is and what their purchasing history has been.
Identify Your Target Demographic
When you were gathering information and doing your business review possible target markets were identified. The target demographic is a portion of consumers that have like buying habits, economic factors, education level, and need for the product. By identifying your target market you will able to better streamline your marketing campaign to them to increase their chances of buying your product. It is important not to try to market to every single consumer otherwise you will missing out on the segment of society that is interested in what you are selling.
Separate Your Target Markets
After you have identified different target markets you will want to put them in different categories so you will be able to manage them better. This will help you better target the common characteristics of similar groups. You will be better able to market to the groups as though they were individuals. One of the most common ways businesses separate target markets is to put them a current customer category and a potential customer category. This will help you think of marketing campaigns that will keep current customers interested in your company and make them repeat consumers and how you can attract the segment of society that you have deemed potential customers to try your product.
Main Target Market
Your main target market is the group of consumers that is currently using your product. These consumers are your bread and butter because they are already familiar with your company and products so it is important to keep them coming back. It is important for your main target market group to be large enough to sustain your company. Your main target market should be responsible for thirty to sixty percent of total sales of your product. It is important to keep up to date with your main target market so you will be able to quickly identify any trends in their buying habits.
Secondary Markets
While your marketing plan will mainly focus on the main target group, it is important to identify secondary target market groups because they can add extra sales and add to your company’s profitability. Secondary markets can be made up of different types of consumers. It could be a group of consumers that could fit into your main target group but there are not enough of them in a certain area at present but have the potential to grow into a larger segment. Perhaps your target market is for males aged thirty-five to fifty-five but twenty somethings like the product as well, the twenty somethings would be a secondary market because there would not ne enough of them to sustain your businesses profitability.
Further Segmentation
Target markets are further divided into other groups. One of the most popular groups that businesses put consumers is by their buying habits. Consumers are put into this category based on if a product is purchased more than one time per year, what time of year is the product purchased, and how the product is used.
Consumers are also put into categories based on their lifestyle. Factors that are identified are a consumer’s interests, habits, education, income level, and employment. If you can identify a fair sized group that enjoys fishing, for example, you will better be able to reach them by advertising in outdoor themed magazines, hunting programs, or at bait and tackle shops.
Where a person lives also plays a part into consumers buying habits. It is important to remember that in different areas of the country consumers have different interests based on the topography, weather, income, and opportunity. This comes in handy if you are selling a product that relies on weather to be useful, whether it is sunny or snowy. You will have to adjust your marketing campaign accordingly to reach your company’s sale objectives.
Know the Demand
The last thing that you will need to do after identifying your target market is to analyze the demand for your product. This will let you know if the group that you have selected to be your main market group is large enough to sustain your company. When analyzing the demand for your product there are several factors that you will want to identify. You will want to know the average amount of time a consumer purchases your product on an annual basis. Will there be any restrictions on your product that will make it unavailable to some consumers. You will also need to know what your company’s market share is and how much of your product is purchased in different geographic regions.