Target Marketing – How Important Is It?

Marketing segmentation

When you are writing a business plan one section of that plan will be dedicated to target marketing.  You might wonder what target marketing is and how important is it?   According to the business plan template that is used by the Halton Region Small Business Centre, target marketing identifies and describes your customer or end user in great detail.  When you truly understand who that customer is, you then know how to reach them or where to advertise. This can help you save time and money as well as help verify that the product or service that you are going to provide is viable.

To begin with, you need to choose a specific market such as: engineers, seniors, women, teens or men.  Write a short, but detailed, description of the target market and then break that down into the follow four categories:

Demographics:

Identify gender; how old people in your target are; how much money they make; and, what kind of education or job they have (if relevant). You can also comment on how many of these types of people live in the area that you will be selling to.

Geographic Area:
Identify where your primary target market lives.

Psychographics:

How do people in your primary target market think? Are they outgoing? Are they reclusive? Do they like adventurous? What interests do they have and then identify any common factors that you might find.

Buying Frequency:

Look at things such as how often your target market will buy? Will people buy daily, weekly, monthly or just for special occasions?

Now that you have your target market you need to expand and create a secondary, third and fourth target market and break each market down into the four categories mentioned above.  If you have four markets then you will have the flexibility to cater to each one at a time, to see which target market sells the most products or wants your services.  The target market can change based on trends and seasonality.

One of the goals of the Small Business Enterprise Centre is to empower small and medium-sized businesses and provide the right tools and mindset to achieve success.  For more information about resources, services, business events and seminars, contact us by dialing 311, 1-866-442-5866, online at halton.ca/smallbusiness, by email at smallbusiness@halton.ca or visit us at 1151 Bronte Road, Oakville. You can also follow us on Twitter and find us on Facebook

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