Target Markets and Adapting to Change

Posted by kboon on February 8, 2010 under Business Building Strategies | Comments are off for this article

In my last post I talked about how challenging it can be when we don’t take the time to listen or get to know our customers.

This is usually the biggest challenge we face in our businesses or jobs. Why? Because it takes time and planning.

If we are a small business the task can seem daunting. Marketing and business schools provide some simple methods to help us get started.

Market Segmentation

First to understand our target audience we need to segment into categories like age, gender, education, income, marital status, etc.   Then we segment by interests, social class, attitudes, beliefs, etc. We begin to get a picture of our what our typical customer might look like. (there is a resource link I’ll provide at the end of this post)

When we start this process it can feel a little like guess work.  But as we talk to people, get to know our audience it becomes more real and believable.

Well.ca (Canada’s Online Health and Beauty Store) has the ability to create a real picture of their customer, because they gather data when customers order. They can segment by age, gender or marital status and see trends in buying habits. They also identify new customer segments as they emerge.  They can adapt and direct their messaging towards these new markets.

Vertical Markets

Corporations will tend to split their markets into what is called “ verticals or vertical markets”. The best companies treat this work like a science. They create products or services specifically for a target market.  They design all web and marketing materials to talk directly to these customers. Sales people learn the language of their target audience.  Good sales people create buyer personas. They know what magazines, newspapers and communities their customer belongs. They listen and talk the language of their clients.

So the lesson. Regardless of the size of your business, get to know your customers. Think about their needs, interests and how your product or service might fit for them. Ask questions. When a customer buys from you, ask them, “why did you buy from me?” If someone doesn’t buy your product, keep a relationship and ask them, “why didn’t you buy from me?” Make your business a learning ground, get to know your customers and be adaptable.

Resources:

How to Find and Sell to Your Target Market - Marilyn Guille

Vertical Markets – Definitions from Wikipedia

Target Markets – Who is your Customer?

Posted by kboon on February 3, 2010 under Business Building Strategies | Comments are off for this article

A while back I was at a large business gathering.  These events are usually designed for people to meet, share ideas, network and find more business.   I met about 20 people and had some great conversations, asked a lot of questions and exchanged business cards.

There was one woman who approached me and before I could even tell her what I do, she started selling me.  “You need these marketing and print materials and let me tell you we also offer design services …. Blah, blah, blah”  I tuned out.  She was determined to sell me.  We talked for a little longer but she did 99% of the talking.  After a few minutes I found a convenient excuse to get away (my beer glass was empty) and I left the conversation.

By 8am the next morning there was an email (from her) in my inbox telling me how her great products would save me money and be just what I needed to get more customers.

She assumed that I needed to save money or get more customers?

She never even asked me a question?

This is a challenge for many business entrepreneurs and sales people.  We get locked into a mindset that we need to sell.  I have done this myself.  I’ll tell a prospect what I do (an elevator pitch) and then they will comment back, “we don’t do it that way”.  And then I find myself back peddling and saying, “oh no but we can also do this… blah, blah, blah”.   Damn!  I’ve lost them and I lost my credibility because I was trying to sell when I should have been listening and developing a relationship.

When I work with clients I ask three questions:

• Who is your typical customer?
• Could you describe them to me (buyer persona)?
• What is your target market?

These questions can be difficult to answer.  I also believe they change as you get know your business, your customer and as market conditions change.  Often a client will say, “well everybody could use what I offer?” I’ll say, “Hang on!  Let’s step back!  Everyone?  Does your product cost money?”  ”Yes?” “Oh!  So you need people with money?”  Yes!

That’s a target market!  At least it’s a start.  I’ll then work with them to find ways to narrow it down even further.

In a future post I will give some examples of how to define your target market and identify your buyer persona.   Or better yet, if you have a business where you would like to run through this exercise, then connect here in the comments area, on Twitter or Linkedin.