Having a well-defined target market is critical to maximizing your marketing dollars. Many small business owners make the mistake of trying to target everyone who might be interested in their product. But focusing your marketing budget on a niche group who will be more likely to purchase your product or service is a more effective and efficient way to spend your limited funds.
To identify your target market, start by creating a profile of your ideal client. Who would benefit from your product or service? What need does your business or product fill? Once identified, then you can begin to determine how that audience might get their information. Whether online or offline, there are many ways to get the word out to your target audience. Here are some tips and questions to ask yourself to help you identify your niche target market.
Examine your current customer base: Who are your current customers? Why do they buy from you and not your competitor? Who buys from you the most? While answering these questions look for common characteristics and interests. Then create a profile of who currently buys from you. Use that profile to identify who will buy from you.
Analyze your product: What problem does your product or service solve? Is there a pain point? People are motivated to buy more through fear and pain than through promise of gain. For example, if you are selling motor oil the most effective ad would tell customers that if they do not use your synthetic motor oil they will have reduced fuel economy and experience more wear on their engine necessitating expensive repair costs. Instead of telling them that if they use your synthetic motor oil they will see increased fuel economy and engine longevity.
Determine the demographics: Once you know who has bought from you in the past and what pain points or problem your product or service solves, look at the demographics of that customer. Think about these factors when identifying your target demographics:
- Marital status
- Ethnic background
- Education level
- Income level
Scope out your competitors: Take a look at who your competitors are targeting. Is there a segment that they are overlooking? Target those people.
Pay attention to Psychographics: These are your customers’ lifestyle characteristics. For example:
How, when and where will your person use your product? Does your customer use social media? If so, what sites would they most likely visit? Are they more likely to respond to email marketing or print ads?
Once you have identified your target market and found how to reach them, you need to make sure your e-commerce is ready for them. Appath can help you easily administer all your multi-channel orders and manage inventory, orders, customers and shipping all in one place. Streamline your business processes into one platform.
Appath integrates seamlessly with major marketplaces, shopping carts, and online storefronts; including eBay, Amazon, Sears, Newegg, Shopify, Bigcommerce, and Magento. Start your Free Trial and let Appath help you grow your e-commerce business.