Focus On Your Target Market (If You Want to Make Money)

Forget the Rest—Focus on Your Target Market for Business Success:

A friend of mine who opened a small business failed to identify her target market first. Instead, she identified several markets, and began approaching each. 

The result? 

A lot of extra time and effort spent in creating three of every ad, brochure, and e-mails: one to fit each market. And the financial results? 

After two years, 33% of her customers fit into each slot. The idea of not being able to have the one product to satisfy every potential person visiting her shop irked her. After a lot of late nights creating three versions of each web page, she realized that small business owners don't have the luxury of multiple campaigns. She woke up, chose her primary customer market, and is much happier (and wealthier) today.

The bottom line is that there is always a typical customer. There will always be someone asking for something you don't carry or a service you don't provide. The key for any small business owner is to focus on your target market only. What do they want, and what don't they want? Sometimes, less is more.

Choosing Products for Your Target Market:

One retailer explained to me that he employed the "Rule of the Uglies," to select products. Recognizing he had completely different taste than the teenage girls who flocked to his urban clothing store, he selected many products based on how ugly he thought they were (and also great computer software that tracked what was sold the month before).

Often, small business owners choose products appealing to them, without considering what their customers need or want. Always keep an eye on what's been your best seller (keeping electronic records is more reliable than your memory, too) and offer customer suggestion boxes or surveys.

Eliminating Products That Drive Away Your Target Market:

Just as it's important to choose products and services that draw your target market in, it's important to eliminate products that will push them away. If you've got a damaged product, for example, consider whether or not your customer will be appalled if you try to sell clearance damaged goods or outdated merchandise. 

You may be better off donating them to charity and taking the tax write-off so that you can maintain an image of professionalism and high-quality. Try eliminating:

1. Products or services inconsistent with your business message.
2. Aged our outdated products.
3. Damaged or flawed goods.
4. Too-cheap or too-expensive products or services.
5. Poorly photographed or described products or services.
6. Beta-tested or trial products or service.

Ensuring That You are Accessible to Your Target Market:

An example: if you're target market is retired seniors, an Internet-only store might be far-fetched. Make sure that you focus on your target market by answering the following questions:

Do they have easy access to your products and services in the way that is most convenient to them?

Is your target customer willing to pay your price for products and services (and are you able to make a reasonable profit)?

What other competing products and services are out there, targeting the same market? Will your customer distinguish between you and others?

Advertising to Your Target Market:

Your advertising method must make sense for the target market you are attempting to reach. For example, an insert in the newspaper will be read by consumers who are looking for coupons. These buyers are probably not looking for a $50,000 piece of property. You would be better off spending those advertising funds in a real estate magazine, or another publication with a similar readership.

Overall, it's important for small business owners to recognize that they can't, and shouldn't, try to be everything to everyone. When you streamline your focus to the primary customer group, you'll maximize earning potential and save your most precious resource: your time.

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What's Next

Next In This Guide
Part 6:
Direct Response Marketing vs. Branding - Rather than wasting money on lofty branding schemes, small businesses can benefit from direct response marketing that offers a better return on investment.

Previous In This guide
Part 4:
How to Create Effective Offers - Good offers result in sales. Poor offers result in lost revenue, added expense, and failure. Learn how to create effective offers.

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Street Smart Guide to Small Business Marketing

 

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