Business Success Center

Target Marketing: Pearls of Wisdom

Are your marketing efforts reaching your target market? While marketing opportunities are endless, not all marketing actions will equal success. Before you embark on a new marketing campaign, stop and take the time to clearly define your market - your true pearls.

Perhaps the simplest question you can ask yourself is, "are my marketing efforts focused on those who can and will use my services or buy my product?" Take, for example, Milan Tailoring, a company that specializes in making beautifully tailored men's suits. It would make complete sense that, at the very least, owner Eduardo D'Oro should have a good definition of his market: professional men making good salaries who have occasion to wear his expensive suits.

Next comes the hard part. Eduardo often receives opportunities for advertising, sponsorships, and community activity. But which avenues are the best to get the word out? Eduardo's answer: he gives every opportunity a shot. And that's exactly what his approach is - a shotgun approach. The shotgun approach assumes that "if we put enough out there, something will surely hit!" Unfortunately, what is often hit the hardest is the bottom line.

To protect and grow Milan Tailoring, Eduardo needs to focus all efforts and funds directly toward his targets. He shouldn't spend one dollar or one moment marketing to those who can't afford or would have no use for his product or service. When new opportunities arise, Eduardo should go back to his market definition and ask himself, "Will this opportunity get my name and message in front of professional men, making good salaries, who have occasion to wear my expensive suits?" If the answer is no, he should forget about it. Forget about the young, polo-wearing, data processors and go for the doctors, lawyers, and executives in town. What events do they attend? What media captures the majority of their time and attention?

Eduardo should also consider Pareto's principle - 80% of your profit comes from 20% of your customers. This being true, it makes sense to concentrate on the top 20. These top folks are often the ones who pay quickly, don't quibble about price, appreciate your service efforts, and are frequent buyers. So how does Eduardo get more of these folks as customers?

The best way to start is to analyze the best customers. What are their characteristics? Where do they live, what do they earn, and how do they like to be treated? To what do they pay attention?

From this point, look at the buying habits of that group. When are purchases made, how are they made (e-commerce, direct mail, phone, etc.), how do they prefer to pay (cash, credit, terms, etc.), why do they purchase from you versus the competition, and, last but most important, what do your customers perceive to be of value in your goods and services?

Market research like this is essential, but don't feel that it has to be elaborate, complicated, or expensive to be effective. Often, some of the most crucial information is what you already possess. And, through surveying your top customers, you can often find the additional pieces to the puzzle. Gaining this insight allows you to offer products and services that will be of value to your market, putting your company on the pathway to success.

Remember that no business can be all things to all people. It is worth the time and effort to search for and focus on your pearls - those that will find value in and bring value to your business.

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