Benefits of Targeting Likely Buyers Over a General Audience

Targeting Everyone vs. Targeting Those Most Likely to Buy from You

An affordable, efficient, and effective way to grow your business is to focus on your target market—the people most likely to buy from you. The alternative is to cast the widest net to “catch” as many customers as possible. This approach will lead to wasted marketing dollars, as not everyone will care about your product or service if they have no interest in it.

Think of it this way: the best fishermen know what type of fish they want to catch ahead of time. They craft the size and type of net with a specific fish in mind. They know exactly where to go to find and catch the fish.

Similarly, with a clearly defined target market, your product or service is tailored to the needs and desires of your prospects. By defining target audiences, every detail of your marketing campaign can be tailored to their interests and emotions, resulting in high conversion rates and sales.

Define Your Target Market in Three Steps

A target market consists of potential customers who are most likely to buy a product or service your product or service. Once identified, this target market should guide every decision you make as a business. Your product development and service offerings should align with the needs and desires of this group.

All decisions regarding packaging and pricing should be tailored to appeal to your target market. Additionally, your sales process should be designed to cater to their shopping preferences. You can define your target market through these three steps.

Step #1: Identify the Key Benefit That Your Product or Service Provides

It might help to start with the end result: completely satisfied customers. For customers to be satisfied, they need to be given a product or service that solves their problem. What is their problem? This is what you need to figure out. Understanding the specific issues your customers face is crucial in tailoring your offering to meet their needs effectively. This involves thorough market research, engaging with your audience, and paying attention to feedback to pinpoint the exact pain points your product or service can alleviate.

It doesn’t matter if you have the best product or service in the world if there is no one with a problem that can be solved by it. Ask yourself the questions: what are the problems you solve? What are the needs you meet? What are the desires you fulfill? Identifying these elements will guide your marketing strategy and help you communicate the value of your offering more compellingly. It’s essential to think from the customer’s perspective—what keeps them up at night, what challenges they face daily, and how your product can make their life easier.

A great example of a brand selling benefits instead of features is Apple selling its first iPod. The main feature of the product was storing 1GB of MP3 files. Instead of focusing on this feature, they focused on the benefit of “1,000 songs in your pocket.” This shift in focus from the technical specification to the practical benefit made the product more relatable and appealing to the average consumer. Similarly, by identifying the unique benefits your product or service offers, you can create a strong emotional connection with your target audience. Once you clearly identify the benefits of your product or service, it becomes clear who needs them, enabling you to target your marketing efforts more effectively and drive higher engagement and conversions.

Step #2: Narrow Down Your Target Market

The goal is to get as specific as possible. To help do this, consider the four categories below. You might not need all of them, but it’s a good practice to think about each when defining your target market:

• Geographic: A product or service may only appeal to a target market in a small geographic area. If so, there would be no point in developing content outside of the location or language spoken in the area. For instance, a local bakery would primarily target nearby residents rather than marketing to a global audience. Consider factors like regional climate, urban vs. rural settings, and local culture, which can all influence the appeal of your product. By understanding the geographic specifics, you can create more relevant and appealing content that speaks directly to the local audience’s needs and preferences.
• Demographic: Personal information such as age, education, income, gender, relationship status, etc. This information might be helpful when pricing your product or service – can your target market afford the price? For example, a luxury skincare brand might target women aged 30-50 with a higher income bracket, while a budget-friendly tech gadget might appeal to younger, tech-savvy individuals with moderate incomes. Understanding demographic details helps in crafting messages that resonate with specific age groups, income levels, and educational backgrounds, ensuring that your marketing efforts are more impactful and efficient.
• Psychographics: Qualitative human characteristics, such as opinions, values, interests, behaviors, attitudes, and lifestyle. These help identify a person more than demographic information. Opinions could be something as simple as preferring to exercise at home as opposed to a gym, or as complex as someone’s political preferences. Interests can be as broad as all outdoor sports or as specific as water polo. By understanding these psychographic factors, you can align your product’s benefits with the values and lifestyles of your target audience. For instance, a brand promoting eco-friendly products would focus on customers who value sustainability and environmental responsibility.
• Behavioristic: Based around understanding buying behavior so you know if a customer will buy from you. This would include knowing if a customer is brand loyal and how much money they are willing to spend on a similar item to yours. Is your product a luxury item potentially bought only once a year? Understanding behavioristic factors helps in predicting purchasing patterns and tailoring marketing campaigns accordingly. For example, a customer who frequently purchases high-end fashion brands might be more inclined to buy a new luxury handbag, while a thrifty shopper might be looking for deals and discounts. Recognizing these patterns allows you to position your product strategically, emphasizing aspects that appeal to the customer’s purchasing habits and preferences.

By carefully analyzing these four categories, you can create a comprehensive profile of your target market. This detailed understanding will enable you to develop more effective marketing strategies, personalize your messaging, and ultimately drive higher engagement and sales.

Step #3: Evaluate Your Target Market Segments

Knowing who you are selling to gives you valuable insights. The main question to answer is: Are these market segments worth targeting?

Here are a few more questions to consider:

• Does your target market have enough customers to sustain your business?
  • Make sure there are enough potential customers to keep your business running and growing.
• Will customers buy repeatedly, or is your business model centered around new customers?
  • Decide if your business depends on repeat customers or if you need to keep attracting new ones. This will shape your marketing and customer service strategies.
• How much competition is there for your target market? If there is none, why is that?
  • Look at how many competitors you have. If there are none, find out why. It might mean there’s no demand or that there are challenges in entering this market.
• How do you separate yourself from the competition?
  • Identify what makes your product or service unique. This could be anything from better pricing, higher quality, special features, excellent customer service, or a strong brand reputation.

You can gather a lot of information to define your target market through online research, analytics, and focus groups. If your products and services meet your target market’s needs or desires, you’ll find it easier and cheaper to grow your business. To get even better results, define your target audience by creating detailed profiles of your ideal customers. This will help you focus your marketing efforts more precisely.

Take It a Step Further by Defining Your Target Audience

While your target market guides your overall business strategy, your target audience focuses on a specific group of customers who are most likely to respond positively to your brand message. Tailoring your marketing campaign to the interests, emotions, and views of this audience can significantly enhance its effectiveness.

For example, consider a clothing subscription service aimed at a particular region, age group, and income level. A successful campaign might target Facebook or Instagram users interested in fashion and online shopping. These users are far more likely to view, click, share, or save ads related to your service, leading to higher conversion rates.

Final Word

Targeted advertising is incredibly powerful. In fact, it can be twice as effective as non-targeted ads. By defining your target market and aligning all business decisions to meet their needs, you can maximize your marketing efficiency. Focus your marketing budget on delivering brand messages to your target market, who are more likely to buy from you. This approach will result in highly satisfied customers and positive feedback.