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Targeted Marketing is all about grabbing like-minded people’s attention to your products and converting prospects into payable customers.
What is a Target Market?
A target market is a small group of like-minded people that share similar attributes — needs, wants, goals, aspirations, and fears. A company should expand or shrink its target market periodically. New market conditions and business scenarios give rise to distinct situations that require speedy addressal. But a company always has access to limited resources — time, money, workforce — to counter new challenges.
The target market enables a company to focus on the challenges of a small community of people and increase the chances of turning them into full-time paying customers.
How to build a target market?
For developing a community of like-minded people, companies need to work on attributes that will help them build a pipeline of suitable prospects.
The following are some attributes that companies must keep in mind:
1. Geographical Parameters
These parameters define a group of people based on their geographic proximity. Examples are:
- City
- Country
- Pin Code
- Neighborhood
- Landmark
2. Demographic parameters
These parameters segment people based on factors such as:
- Age
- Income
- Education
- Gender
- Religion
- Marital Status
- Race
3. Behavioral parameters
These parameters distinguish between people based on their behavioral patterns, such as:
- Past purchasing pattern
- Consuming pattern
- Brand interactions
- Spending habits
4. Psychographic parameters
These parameters segregate groups of people based on:
- Lifestyle
- Values
- Beliefs
- Interests
- Personality
It becomes easy to create top-notch marketing campaigns after creating a group of people with similar interests and share similar goals.
For example, consider a restaurant near a college. Instead of marketing to the masses, the restaurant can build a marketing strategy to keep college-going students’ interests in mind. It can create a dynamic environment with loud music beats and a lively bar. By serving its target market’s needs, the restaurant can expand its base quickly and open more branches near other colleges.
Also Read: The Secret Sauce of Marketing in 2020 And Beyond
Why is a Target Market crucial for a business?
The target market forms a crucial part of your marketing strategy. It allows you to directly communicate with a particular segment of customers that have the highest chance of buying your products. It helps you enhance your customer service experience, work on your branding, and significantly improve your business operations.
The following points will describe why building a target market is essential for your marketing strategy.
1. Create a powerful impact on your audience
Once you create a target market, it becomes easy to build impactful marketing campaigns — slogans, emails, digital marketing, face-to-face marketing, up-sell, and cross-sell opportunities. It’s challenging to create marketing collaterals that resonate with many people, and only a few companies have the wherewithal to do that. But once you understand your audience, you can focus all your time, energy, efforts, and money on creating a perfect marketing strategy. This approach applies to both — B2C and B2B marketing.
2. Get high-quality leads
The necessary condition for getting high-quality leads is developing a marketing strategy that delivers what your audience wants. You conduct one-to-one sessions, interviews, focus groups, and surveys to determine your audience’s needs and wants and build a suitable marketing strategy accordingly. When you understand their pain-points and deliver to-the-point solutions, you will connect with them at a deeper level and help them alleviate their problems. The better you connect with your audience, the higher the chances they will convert into paying customers.
3. Differentiate yourself from your competitors
Your marketing strategy distinguishes you from your competitors. When you focus your time, energy, and money on a small segment, you develop a personal connection with them. Your customers will know your unique selling propositions (USPs) and spread good word-of-mouth. They will accept your ideas without trying to find dubious intentions.
On the other hand, if your competitors focus on a wider audience, they won’t be able to do so.
By defining a target market, you can create superior marketing campaigns and position yourself better. You can build an everlasting brand that is unique and well-known than others.
4. Build more profound and more personal relationships
The main focus of marketing campaigns should be on building robust and long-lasting relationships with customers. The stronger your relationships will be, the more your customers will vouch for your services. They will advocate for your products and help grow your customer base.
Building strong relations requires you to gain a 360-degree perspective of your customers. You must know their likes, dislikes, wants, aspirations, purchasing patterns, etc. Once you know the above-discussed attributes, you can build great marketing campaigns and create a loyal customer base.
Also Read: Create Better Marketing Campaigns with Sage CRM
5. Improve your products and services
When you have in-depth knowledge about your customer base, you will know what they are looking for. You should closely monitor customer reviews and note what they like and dislike. By interacting with your clients daily, you can view your products and services from their point-of-view that will allow you to make suitable changes to your offerings.
Conclusion
Targeted marketing campaigns require timely planning and implementation. They also need intelligent use of technology that makes your operations lightning-fast, significantly increases your efficiency, and enables you to estimate the future correctly.
At Sage Software Solutions (P) Ltd., we are home to world-class ERP software and CRM software that will solidify your business tech support fundamentals and enable you to build a customer-centric organization. To know more about it, SMS SAGE to 56767. You can also write to us at sales@sagesoftware.co.in
Disclaimer: All the information, views and opinions expressed in this blog are those of the authors and their respective web sources and in no way reflect the principles, views or objectives of Sage Software Solutions (P) Ltd.
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