Instructor:%20_______________

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Determining YOUR
Target Market

• Instructor _______________

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Target Marketing
Going at it Blindfolded?
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What is a Target Market?

• Small Businesses CANNOT be all things to all
  people.
• Each business MUST reach specific customers and
  satisfy their particular needs.

Target Marketing
The process of finding and studying potential
customers
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Target Marketing
Why DO we CARE?
Newton Moment.
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Target Marketing Can

• Be a valuable tool for small businesses.
• Allow small businesses to develop products and
  marketing mix that fit a particular niche.
• Allow small businesses to focus their resources
  on a specific customer base.
• Maximize profit.

• Be a primary function of marketing management

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Fly Fishing Story
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• A nationwide manufacturer of fishing equipment is
  looking to sell its newest, most innovative fly
  rod. In order to determine which customers might
  most likely purchase this top of the line rod
  the CEO of marketing decides it would be a waste
  of time and money to randomly market this product
  to the entire U.S. population especially
  because this fly rod is most likely to appeal to
  die-hard outdoor enthusiasts and fishermen and
  not your everyday suburbanite.

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• But where do these outdoor enthusiasts live?
  Where do they shop? What websites do they visit?
  Where do they go to fly fish?
• Rather than waste money shooting in the dark,
  this savvy CEO decides to conduct market research
  and he/she uses tools such as demographic
  reports, market surveys, and trade shows, to
  determine which customers would be most likely to
  purchase the new fly rod and how to market to
  them and their vulnerabilities.

• Once he/she has this information in hand, the CEO
  is able to more efficiently spend their limited
  resources in an effort to persuade members of the
  target group(s) to buy the rod.

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• Advertisements and promotions would then be
  specifically tailored for each segment of the
  target market including emails, web banners,
  flyers, magazine advertisements, television
  advertisements in specific markets etc.

www.wanakaflyfishingacademy.co.nz
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Finding YOUR Target Market

• WHO are your customers?
• WHO will buy your product?
• Identify and serve a particular customer group
  your target market!

Refine your Product / Service
DO NOT try to be all things to all people!
Become a specialist!
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Big Game Hunting Scenario
www.pineyvalley.com
www.pineyvalley.com
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Why do People Buy Things?

• To satisfy basic needs.
• To solve problems.
• To make themselves feel good.

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www.pineyvalley.com
Big Game Hunting Scenario II
www.pineyvalley.com
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Market Segmentation

• Define the scope of your product
• Is your product international or national in
  scope?
• Is it likely that you will sell it primarily in
  your own region or community?

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Market Segmentation

• Identify Market Demographics
• WHO are the people in your community?
• HOW old are they?
• HOW many of them are young, middle aged, elderly?
• WHAT is their level of education?
• WHAT is their income level?

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Market Segmentation

• Identify Market Demographics
• Age children, teens, young, middle, elderly.
• Gender male, female.
• Education high school, college, university.
• Income low, medium, high.
• Marital status single, married, divorced.
• Ethnic and/or religious background
• Family life cycle newly married, married for 10
  20 years, with or without children.

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Local Demographics Discussion
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Market Segmentation

• Segmenting the Market breaking consumers and
  their spending habits into categories
• Lifestyle conservative, exciting, trendy,
  economical.
• Social class lower, middle, upper.
• Opinion easily led or opinionated.
• Activities interests sports, fitness,
  shopping, books.
• Attitudes and beliefs environmentalist, security
  conscious.

• Technologically driven likely to purchase items
  online or not?

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Consumer Purchasing Motivators

• You KNOW the types of people in your market
• You KNOW whod youd like to target
• NOW. . . .
• You NEED to Know What They Want!

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Consumer Purchasing Motivators

• 6 ways to Identify Consumer Wants/Needs

1. Study your market and your customers.
2. Study your competitors their customers.
3. Observe and ask questions lots of questions.
4. Find out what customers will respond to in your
   type of product or service.

• Find out what is most important to them.
• What motivates them?

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Consumer Purchasing Motivators

• Product Identification Questions

1. Is your product a necessity or luxury?
2. What is the products lifecycle? How often
   will customers need to re-purchase?
3. What is the products availability?
4. Are there any foreseeable future changes in
   this industry?
5. What is the price of an average purchase?

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Eyewitness News Account
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Consumer Purchasing Motivators

• Turning Motivators into Messages

• From the targets and purchasing motivators youve
  identified
• Start with one or two words you want to associate
  with your business.
• From these words, develop either a motto or a tag
  line for your business.
• "Fly the Friendly Skies," "We Try Harder" and "Do
  It Your Way" are all well known tag lines.

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www.pineyvalley.com
Rocky Mtn Elk Motivating Message!
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Changing Consumers

• Interact with/get to know your customers

• TALK with your customers
• Use surveys and analytics
• Place surveys at your place of business.
• Incorporate questions into online checkout.
• Issue surveys via email.
• Surveys allow you to capture information about
  your customers.

Information is power, and this type of feedback
from customers may show you opportunities for
improvement.
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Changing Consumers

• Use the information youve gathered!

Keep a pulse on the industry. Refresh your data
with new research regularly. Utilize this
information heavily whenever you are re-investing
in your marketing strategy.
Instead of letting your current customer base
define you, use target marketing to determine who
your next customers or clients should be.