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Marketing Tactics

10 Questions to Ask Before Determining Your Target Market

The better you understand your customer, the faster your business will grow. But new ventures often struggle to define their target market and set their sights too broadly.

Alina Dizik

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“We often overestimate the market size, and in many cases there may not be one at all,” says Robert Hisrich, director of the Walker Center for Global Entrepreneurship at the Thunderbird School of Global Management.

Here are 10 questions that can help you determine whether you have a target market and what it is:

1. Who would pay for my product or service?

First, try to understand the problem that your product or service can solve, says Greg Habstritt, founder of SimpleWealth.com, an advice website for small-business owners.

Then, use that information to help determine who would be willing to pay for a solution.

“Not only do [your potential customers] need to have the problem, but they need to be aware they have the problem,” Habstritt says.

He recommends using Google’s keyword tool to see how many people are searching for words related to your business idea.

2. Who has already bought from me?

To refine both your target marketing and your pricing strategy, see who has already bought your product or service, says Amos Adler, CEO of Memotext, a medication compliance app maker.

You can gain valuable insights by releasing the product in a test phase and letting potential consumers speak with their wallets.

3. Am I overestimating my reach?

It’s easy to assume that most people will need your service or product.

But rather than make assumptions, reach out to groups of potential customers to get a more realistic picture of your audience and narrow your marketing efforts.

You can conduct surveys, do man-on-the-street type interviews in stores, or organise small focus groups. “We get so passionate about the idea and how good it is that we overestimate the market size,” Hisrich says.

Related: Marketing’s Best Kept Secret

4. What does my network think?

As you try to understand your target market, it may be challenging – and expensive – to seek feedback from potential consumers through surveys, focus groups and other means.

But you can tap into your social networks to get free feedback.

Many people in your extended network will likely be willing to take the time to give you opinions and advice, says Bryan Darr, founder of Mosaik Solutions, a data analytics company.

5. Am I making assumptions based on my personal knowledge and experience?

Your own personal experience and knowledge can make you believe that you understand your target market even before you conduct any research, Habstritt says.

For example, if you’re a fitness buff and want to start a business related to personal health, you may assume you know your customer.

“Don’t assume that you can think like your target market,” Habstritt says. “You have to ask them and talk to them to really understand them.”

6. What’s my revenue model?

Figuring out how you’ll reap revenue can help you find your target market, Hisrich says.

Social ventures can be particularly tricky, he says, because without a specific plan for getting revenue it’s easy to overestimate the size of the customer base.

But if you’re revenue model is simply selling a product online, it can be easier to figure out a target customer.

7. How will I sell my product or service?

Your retailing strategy can help determine your target market, Hisrich says.

Will you have a store, a website or both? Will you be marketing only in your home country or globally?

For example, an online-only business may have a younger customer than one with stores.

A brick-and-mortar business may narrow your target market to people in the neighbourhood.

8. How did my competitors get started?

Evaluating the competition’s marketing strategy can help you define your own target customer, says Darr.

But of course, don’t simply copy the marketing approach of your biggest competitors once you define your target consumers. “You must have a way of differentiating what you are doing from what the other guys offer,” he says.

Related: Marketing Lessons from the Big Boys

9. How will I find my customers?

As you start defining your target customers, try to determine whether you can efficiently market to them.

You’ll need to do some market research and study your target audience’s demographic, geographic and purchasing patterns.

If you’re selling from a storefront, you need to know how many people in your target market live nearby.

If you’re selling from a website, you need to learn about your prospective customers’ online behaviour.

Understanding how to locate your customers early on can help you establish a game plan once you start building a marketing strategy, Hisrich says.

10. Is there room to expand my target market?

Be prepared to redefine your target market or to expand it over time, Darr says. For example, figuring out whether you’re targeting a domestic consumer or customers throughout the world can be a good start.

As the power of mobile mapping has grown in the last decade, he’s seen the number of target markets grow at his own firm.

In the beginning, Mosaik dealt mostly with wireless operators, but now he also counts cable providers and broadcasters as clients, Darr says.

 

Which tactics did you find most helpful in identifying your target market? Share them in the comments section below.

Alina Dizik is a freelance journalist and writer based in New York City. Her work has been published in The Wall Street Journal, iVillage, More magazine, The Knot, BusinessWeek and the Financial Times. She covers entrepreneurs, consumer trends, business education and careers.

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Marketing Tactics

Gen Z Is Coming! Are You Ready?

How do you market your company to this generation?

Stuart Scanlon

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According to the CNBC, about 61 000 Gen Zers are on the verge of entering the workforce and consumer market in the US alone.

They are digital natives; they have grown up in a world of vines, txts (yes, we know) and internet. Their attention span is shorter than ever, they are more connected than any other generation, and they are brilliant multitaskers. Gen Z is a more tolerant generation but also more cautious; studies have found less risk-taking amongst this group and an increase in thoughtfulness and questioning authority.

So, on the one side of this coin, how do you market your company to this generation?

1. By being transparent

Be upfront about your business, what you’re doing and how you’re doing it. They have lost faith in corporations. Thus, you must stop relying on and hiding behind small print. Yes, you need terms and conditions to protect your company, but when it looks like a miracle weight-loss advert of the 80s (“Eat anything you want just take this pill. Ts&Cs apply.”), you’ll lose customers.

Related: Investing in Young Entrepreneurs

Gen Z consumers want to see you are real; they don’t want models or celebrities but regular people who can assist them in a manner that speaks to them. And they will hold your business is socially accountable. Instead of producing millions of T-shirts at the cheapest possible price, they want local, equality and free-trade, and they want to know what businesses are doing for the environment and society.

Gen Z won’t accept your claims at your word; they want to see evidence in your company culture.

2. By offering options

A jewellery purchasing study has found that most Gen Zers don’t have a preferred shopping platform. What this means is your messaging, availability and culture need to be spread evenly across all contact points – sales, call centres, website and digital advertising. In fact, many Gen Z consumers rely on mixing their contact points.

That being said, they want immediate action. If they see something they want online, they will go to the shop just to have the item right now. More than immediacy, they also want custom-made or made-to-order products and services. They shy away from traditional made-to-stock methods, which creates plenty of room in the production industry.

3. By being forward thinking

We have to always remember what was mind-blowing inventions to other generations are the norm for Gen Zers. They hold brands and businesses to high expectations, and instead of being loyal to brands, expect brands to be loyal to them. As Gen Z is more focused on individuality, they are also proving to be a generation with a high entrepreneurial output. All this shows that they don’t want the norm; they don’t crave what’s new today, they want tomorrow, sustainability and innovation, and they want it now.

On the other side of the coin, how do you attract this generation to work at your company? In much the same way.

1. By being transparent

As much as you are hiring them based on what they bring to the table, so too are they looking at what you can afford them. But, they don’t just want to hear you tell them about the benefits, they want to see it – and they are not after just money. Gen Zers want to be financially secure, but also one that is fulfilling; one where they find purpose in their jobs and company.

2. By offering options

Gen Z employees don’t want to work eight to five, they don’t want to be chained to a desk, and they don’t want to be micro-managed. Give them flexibility on how they want to conduct their work and how they can communicate with their colleagues. Create an understanding workspace for their needs and help them improve their skills – for instance, it’s been reported that a stumbling block for Gen Zers is communication. Growing up with emojis and text messages make face-to-face conversations, business calls and writing emails difficult for them.

Gen Z employees want to work hard and grow their skills. Even though they’re growing up in a super-paced society, they want to climb the corporate ranks at the given speed. What they crave, with urgency, is gaining value from their jobs.

Related: The Z Generation

3. By being forward thinking

They are lateral thinkers, and their creativity is not just outside the box but has broken the box completely. Gen Z is incredibly tech-savvy, and they will challenge the systems and procedures you have in place if these are not providing the needed speed and data required. Thus, they crave to work in an environment where they can push boundaries and ultimately help the company move forward. Hiring from the Gen Z pool can provide you with innovative insights into your business that can grow it towards tomorrow’s giants.

The only way to be sure you are future-proofing your business is by guaranteeing it caters for future customers and employees, by relying on forward-thinking enterprise resource planning software, for instance. Epicor ERP software ensures that their clients stay agile and innovative through trusting top minds to build and develop intelligent systems that open doors for Gen Zers. It’s Epicor’s innate tech-savviness that allows them to visualise the landscape of tomorrow and develop the software to support it today.

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Marketing Tactics

4 Steps To Writing Content That Converts

Hook them, engage them and tell them what you want them to do.

Syed Balkhi

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Is your content persuasive enough to convert your visitors into leads?

Some pieces of content you create will drive conversions, while others will be lost in the archives. As a marketer, you always want to write content that is persuasive enough to turn your visitors into leads and thereafter, into paying customers.

Writing persuasive content is not magic. Let’s take a look at some ways to write content that converts.

1. Craft an enticing title

The title of your content is the most important factor that influences engagement. A whopping 8 out of 10 people may not even read your content if the title isn’t captivating enough.

Using Headline Analyzer by Coschedule is the best way to create a magnetic headline that attracts your audience. Just enter your headline and the tool will report back with a score and a grade along with some suggestions to improve.

For analysis, the tool looks at the following factors:

  • The headline type: It capitalises on the type of headline that converts, including lists, how to’s and questions.
  • Word balance: It helps you to curate an enticing title by checking to see if it has the right word balance.
  • Character length: It also looks whether your title is scannable and easy to digest.

Related: How Content Marketing Adds Real Value To Your Customers’ Lives

2. Fulfill your title’s promise

Getting clicks on your title is just half of the equation. Ensuring that your content fulfills the promise of your title is another equally, maybe even more, important part of driving conversion. If your content can’t keep the promise your headline makes, your visitors will likely abandon your site without further engagement.

When crafting each line of your content, keep in mind that the purpose is to get your visitors to read the next sentence, then the sentence after that and all the way down to the end of your article.

Aside from providing value, you’ll also want to evoke a desire for what you’re offering.

3. Make it scannable

Most of your website visitors spend less than 15 seconds on your website, meaning people quickly skim through the content instead of reading word for word.

If your content is hard to scan, meaning it contains long sentences and paragraphs, it’s likely that your visitors won’t stick around. Chances are, they’ll go to your competitors to find content that’s easier to consume.

To create content that is easily scannable, you can follow the actionable tips below:

  • Short paragraphs: Write short paragraphs, preferably 3-4 sentences at most. Breaking down your content into short paragraphs makes it more digestible for your readers.
  • Use attractive subheaders: Readers should be able to bounce around to seek out the pieces of your content that interest them. By using attractive subheaders, you can pique the curiosity of your readers and keep them engaged.
  • Use bullet points: Using a bulleted list is the easiest way to ensure that your content doesn’t strain your visitors’ eye to read through it. Since bulleted lists stand out from the rest of your page, they make the entire piece easier to skim through.

Related: 5 Reasons Your Small Business Needs Content Marketing

4. Add a call to action at the end

The best way to convert your visitors into leads is to add a call to action, such as an email subscription form, at the end of every article you publish.

Some tips to speed up the growth of your email list are:

  • Offer a post-specific resource: Create a post-specific resource, and offer it for download in exchange for the email address of your visitors. When the resource is post-specific, readers are more likely to engage with the campaign, in turn boosting conversions.
  • Creating a premium library: To increase both perceived and actual value, you can create a premium library consisting of ebooks and other valuable course materials. You can then persuade your visitors to subscribe to your list by adding a signup box at the end of each article.
  • Content gating: Content gating is a popular strategy to boost conversions on your site. For instance, you can grow your list by blocking a small section of your content for subscribers only, which encourage your readers to sign up for your list.

The best way to create content that converts is to use emotion in your copy and evoke a desire for what you’re offering. By following the above tips, you can write content that converts your visitors into leads, and soon thereafter, into paying customers.

This article was originally posted here on Entrepreneur.com.

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Marketing Tactics

5 Marketing Missteps That Make Cash Flow And Business Growth Stumble

If you don’t want your cash flow to turn into a drip, you’ll want to take a look at these mistakes you might be guilty of.

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I am often confused by the decisions normally very smart entrepreneurs make when it comes to marketing and sales, and growing their companies. It’s as though logic flies out the window and emotions rule the day when we start talking about sales and marketing.

Of course, I’m not suggesting entrepreneurs need to be perfect – in fact, I personally made one of these mistakes last year. My issue is with the entrepreneur who doesn’t realise when they are screwing up and continues to let their mistakes hurt their business’s long-term ability to grow.

I recently read a study that looked at businesses’ cash flow. It found that only 12 percent of businesses never have a cash flow issue. That means 12 percent of businesses can consistently pay their bills, pay themselves, and have profits left over. Of the others, 47 percent of businesses say that cash flow is sometimes a problem, and 41 percent of businesses surveyed said cash flow was a consistent problem.

To be fair, this study didn’t publish any additional info about the business owners – for example, did all of these businesses have less than $1 million in annual revenue? If so, I would assume those businesses would have greater cash flow issues than a group of businesses at $1million-plus in revenue. For this discussion, let’s assume this is accurate (based on my experience of working with small businesses, it is pretty close). How do you fix a cash flow issue for any business?

Related: Daniella Shapiro Of Oolala Collection Club’s Smart Strategies For Marketing Your Online Business

The interesting thing is that in the vast majority of cases, your marketing is linked to cash flow issues. The mistakes many entrepreneurs are making with marketing, sales and business growth are the same five mistakes that are causing their cash flow issue.

1. Not making customer retention a priority in your marketing strategy

I’m going to start with the one that is most near and dear to my heart: customer retention. You don’t have to use a newsletter to grow and maintain retention (although that is a good idea). But, you do have to do something, and that something needs its own budget. Retention is not a portion of the marketing budget. Without customers, your business is worth just about zero.

The reason so many businesses struggle to grow is they invest nothing in retention. These normally smart entrepreneurs have deluded themselves into thinking that their product and services are so amazing and life-changing that people will continue to buy over and over again without prompting.

So what lie do these same entrepreneurs tell themselves when they have 3.5 percent year-over-year revenue growth? Tens of thousands – maybe even hundreds of thousands – of dollars spent on marketing, and only 3.5 percent year-over-year revenue growth? If you’re a large retail chain, that isn’t bad, but for dentists, lawyers, financial advisors, or anyone in a service-based business, that is far from good.

Starting today, you must have a customer retention budget. Use the budget to increase retention, and from there, upsell the existing customers. The longer a customer is with you, the greater the chance for a referral. Their customer lifetime value goes up, too.

Done correctly, your retention campaign can increase sales and create more prospects. Regardless of how you use it, you must have a retention budget.

2. Getting bored with things that make you money

As entrepreneurs, we are prone to getting bored, and that even happens with our marketing. Regardless of how well it is working, we get bored with it and want to try something new. This is a toxic practice on many levels. I understand wanting to try something new, but you never cancel marketing that is working (even if it isn’t exactly crushing it) to try an unproven new thing. When people do this, they are basically saying, “I hate money.”

How many times have you tried a marketing program, only to have it not work out as promised or as quickly as promised? Do not cancel good marketing to chase unicorns. You can also call this tendency “shiny object syndrome.” It’s particularly severe when it comes to hip cutting-edge marketing tactics, like influencer marketing.

If you want to try something new, create a budget and try it. Don’t kill a pipeline of incoming cash to drill for a hopefully more profitable pipeline, because when it doesn’t work, you are screwed. If you can’t afford the new marketing without killing the old marketing that is working, then you shouldn’t be starting the new campaign until you figure out how to pay for it.

These are two huge mistakes that I see small-business owners make all the time that destroy your cash flow.

Related: Henrico Hanekom – Discover Your Inner Marketing Genius

3. Not investing enough money into marketing

I was chatting with a dentist from the greater New York area a while ago, who claimed to be getting patients with this one type of marketing for about $175 each. That is good in the greater New York area because of all the competition. However, just because you hit a home run doesn’t mean you can expect to hit a home run every time you’re up to bat. In that area, it costs $250–$450 to get a new patient in the door.

You will never grow if you’re not willing to invest a realistic amount per new customer. I’ve chatted with entrepreneurs who want to get 50 new customers per month, which should require a budget of at least $12,500, but currently, they only have a budget of $3,000 per month. I hate to break it to you, but you’re never going to hit your goal. If anything, the $12,500 per month you have devoted to marketing may not be enough, because as you scrape the low hanging fruit, you often find you need to increase the amount you’re willing to pay to get a new customer.

4. Feast or famine marketing

This is actually the mistake I made in 2016. We had so much going on in the first half of the year (the feast) that I didn’t plan well enough for July, which is typically a slower month for us (the famine). In July, I need to do more marketing and even spend more money on marketing to make up for all the business I lose when people go on vacation and forget about their campaigns. But, I was planning a vacation myself in July, and in turn, I actually ended up cutting marketing because I didn’t want to do the work that was needed.

Bad planning and a cut in the already planned marketing for July tanked the month. It was our worst month for new sales in nearly two years. You can’t allow a busy period to take your eye off the ball. If you have traditionally slow sales months, you must do more, spend more, and market more, in those months.

5. Cash flow issues demand more marketing, not less

This is the last of the bad ideas for today, but when you are having cash flow issues, shutting down the pipeline that is bringing in the cash you do get is just dumb.

Of course the argument I always get is that the marketing wasn’t working anyway. Well, if that was true, why didn’t you cancel it earlier? Typically, the entrepreneur doesn’t really know whether their marketing is working or not. All they know is they need money, so they cancel marketing to free up cash. That may help the problem this month, but it creates a new problem next month when no new customers show up.

When times are hard, you need to reinvest more in marketing, not less. You must figure out how to close more sales, not get fewer leads. There are lots of good ways to shore up your cash flow situation, but cutting off revenue-generating marketing is not one of them.

This article was originally posted here on Entrepreneur.com.

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