What is Target Marketing and Why is it so Important?
Is target marketing part of your sales and marketing repertoire?
Target marketing is a phrase that is often heard, but do you know what this actually is and why it is so important for any business or marketing professional? One of the most effective marketing methods is direct mailing, but how do you decide whom to send your materials to so you get the best possible return on your investment? Sending out marketing items blindly is often a waste of money.
What is Target Marketing?
Target marketing is a method that uses research and planning in order to identify target markets and demographics in order to determine which consumers are most likely to be interested in a specific product or service. This form of marketing involves figuring out what attracts customers who are in the market for whatever it is that you are selling.
Poor marketing could not only be preventing you from attracting customers – it could be driving them away in droves.Source: The Marketing Donut
Precision Direct Mailing Gets Better Results
Any campaign that uses direct mailing requires precision targeting in order to get the best possible results and the biggest return on the investment made. If you are selling carpet cleaning services then identifying homeowners with carpets is important. Homeowners without carpet will not be interested in the services that you are offering and marketing to them will be a waste of money.
How to Identify Your Target Markets
In order to start using target marketing you first have to identify the target markets that you want and need to reach. There are four main components that you need to identify in order to pick the right target markets.
- Who needs or wants your services and products?
- Where are they located?
- Why do they make their choices?
- How do they behave?
Find out everything possible about your targeted demographic groups so you can appeal to these individuals on a much deeper level.
7 Important Things You Need to Know About a Target Market
Before you can start to market to any group it is necessary to determine whom your ideal customer will be. Do you hope to attract young adults who rent or middle aged homeowners? Are your products or services geared towards males or females? The seven most important factors to identify when it comes to target marketing for any direct mailing are:
- Hobbies and interests
- Homeowner or renter
If you do not have this basic information then you cannot determine whether the consumer is a good match with your products or services. Different genders and age groups have different needs and preferences, and different income levels will have different standards of living. If you can gather additional details and demographic information about a target market this is even better.
Hold Your Own in Niche Markets
When you use target marketing your company will be able to hold its own in the various niche markets. As a new start up you will not be able to compete with a Fortune 500 business, but you can be ranked highly in a niche market. This means using your resources to the best advantage, and this type of marketing will help your campaign be more cost effective and get better results.
Focusing on niche markets will allow you to create a strong, differentiated identity for your brand…Source: Business 2 Community
Build Up a Loyal Customer Base for Your Business
One of the goals of a direct mailing campaign is to build up a loyal customer base. This is one area where target marketing can help. Because you are targeting people who will be interested in your offerings it is much easier to convert them into loyal customers as long as you are offering a quality product or service at a reasonable price.
Help Your Business Succeed With Effective Marketing
If you want your business to be successful then target marketing may be the best choice you can make. This form of marketing can be highly effective, and this is a consideration for a business of any size. You want to attract the right consumers so that your marketing investment results in sales for the company, and that means doing some research before you do anything else.
Direct mail remains the largest single direct marketing expenditure, followed closely by teleservices at $41.2 billion.Source: Dave Erlandson at WhatTheyThink.com
Do you know your target market? For target marketing to truly work you have to dig deep and get very specific about this important demographic that can make or break your business.
Have you ever used target marketing with your direct mail campaigns? What markets did you target and what results did you get?