In order to ensure success in your business venture, you need to identify your target market(s) and concentrate on the segment that is capable of producing maximum sales.
The following points specify the need for identification of the target customers:
- When you are able to identify your customers, you can customize your entire marketing campaign to attract them with direct marketing strategies.
- Effective communication always earns positive results and helps to save on effort and expenditures in non-productive areas.
- Your marketing strategies will be more focused and result oriented.
- You will be able to make very accurate forecasts on the additional services customers will expect from your company.
- You will be able to maintain the best pricing and quality levels required to capture and retain customers.
- It will enable you to identify the concentration of customers in specific locations, to design direct and cost-effective marketing.
- It will allow you to identify the competition in the market and the areas where you can generate maximum customer loyalty and the best sales response.
- You will be able to identify any lapse in the fulfillment of customer needs.
- You will be able to monitor and take the best advantage of customer behavior.
- It will be a resource to vital information about the overall market for your products.
This does not indicate that sales should be restricted only to your target customer base. Your target market is, in fact, the focal point at the beginning. The products should be made available to customers outside your target customer base. When you discover that customers outside your identified target segment fail to exhibit a response favoring your products, your strategy should change. You should try to involve the inclusion of prospects that have characteristics similar to those of your present customers.
It pays to identify the reasons why customers outside your target segment are not responding favorably. This information can provide an opportunity for the development of a new product, with slight modifications, to add to the product range and profits of your company.
Identifying your target market is vital for customizing the marketing and advertising campaigns, to generate maximum revenue. It will also help to curb unnecessary expense and labor in the unproductive markets. Once you successfully identify the drawbacks and implement customized changes, very little can keep your business from attaining success.