PART 5 – Defining Market
5.1. Defining Your Market
To ensure that you reach the sales objectives that you have set it is important to know who your target market is and what their purchasing history has been.
5.1.1. Identify Your Target Demographic
When you were gathering information and doing your business review possible target markets were identified. The target demographic is a portion of consumers that have like buying habits, economic factors, education level, and need for the product. By identifying your target market you will able to better streamline your marketing campaign to them to increase their chances of buying your product. It is important not to try to market to every single consumer otherwise you will missing out on the segment of society that is interested in what you are selling.
5.1.2. Separate Your Target Markets
After you have identified different target markets you will want to put them in different categories so you will be able to manage them better. This will help you better target the common characteristics of similar groups. You will be better able to market to the groups as though they were individuals. One of the most common ways businesses separate target markets is to put them a current customer category and a potential customer category. This will help you think of marketing campaigns that will keep current customers interested in your company and make them repeat consumers and how you can attract the segment of society that you have deemed potential customers to try your product.
5.1.3. Main Target Market
Your main target market is the group of consumers that is currently using your product. These consumers are your bread and butter because they are already familiar with your company and products so it is important to keep them coming back. It is important for your main target market group to be large enough to sustain your company. Your main target market should be responsible for thirty to sixty percent of total sales of your product. It is important to keep up to date with your main target market so you will be able to quickly identify any trends in their buying habits.
5.1.4. Secondary Markets
While your marketing plan will mainly focus on the main target group, it is important to identify secondary target market groups because they can add extra sales and add to your company’s profitability. Secondary markets can be made up of different types of consumers. It could be a group of consumers that could fit into your main target group but there are not enough of them in a certain area at present but have the potential to grow into a larger segment. Perhaps your target market is for males aged thirty-five to fifty-five but twenty somethings like the product as well, the twenty somethings would be a secondary market because there would not be enough of them to sustain your businesses profitability.
5.1.5. Further Segmentation
Target markets are further divided into other groups. One of the most popular groups that businesses put consumers is by their buying habits. Consumers are put into this category based on if a product is purchased more than one time per year, what time of year is the product purchased, and how the product is used.
Consumers are also put into categories based on their lifestyle. Factors that are identified are a consumer’s interests, habits, education, income level, and employment. If you can identify a fair sized group that enjoys fishing, for example, you will better be able to reach them by advertising in outdoor themed magazines, hunting programs, or at bait and tackle shops.
Where a person lives also plays a part into consumers buying habits. It is important to remember that in different areas of the country consumers have different interests based on the topography, weather, income, and opportunity. This comes in handy if you are selling a product that relies on whether to be useful, whether it is sunny or snowy. You will have to adjust your marketing campaign accordingly to reach your company’s sale objectives.
5.1.6. Know the Demand
The last thing that you will need to do after identifying your target market is to analyze the demand for your product. This will let you know if the group that you have selected to be your main market group is large enough to sustain your company. When analyzing the demand for your product there are several factors that you will want to identify. You will want to know the average amount of time a consumer purchases your product on an annual basis. Will there be any restrictions on your product that will make it unavailable to some consumers. You will also need to know what your company’s market share is and how much of your product is purchased in different geographic regions.
5.2. Positioning Your Product
Now that you have completed your sales objectives and identified your main and secondary target markets it is time to put your product in the best possible position to succeed and fit in to the overall marketing strategy.
5.2.1. What Positioning Means
When you are trying to position your product, you are attempting to put the image of your product in the minds of consumers who you have targeted to purchase your product. If done correctly it will put your characterization of the product in the minds of the target market ahead of your competition. Putting your product in a good position will help consumers view your product differently than your competition.
5.2.2. Is Positioning Important?
When coming up with a marketing plan, positioning the product is important. Having good product positioning is the base for all of your activity with consumers. Without having good product positioning your communication, advertising, merchandising, and publicity will all suffer. When you are marketing your product, you are reinforcing your product positioning. All these areas of your business must work together to convey the common message of the position of your product.
When you are looking towards the long-term positioning of your product there are some factors that you must address. You must understand what your target group wants from your product and you should have a clear understanding of your competition. The research that you have already done will be a great help to you when it comes to positioning your product. Having a good understanding of your products strengths and weaknesses in relation to your competition is good place to start when positioning your product. Having a good idea of what separates your product from your competition will help you position your product as well.
Along with the research that you have done on the strengths and weaknesses of your product that will help position your product, the research that you have done on your target market will be of equal help. The surveys and interviews that you conducted will be of use here because they were conducted directly with consumers. This is because no matter what you do, the target market must be put first, and any positioning must be focused on them.
Furthermore, in order to position your product in the best way by using your target market these are the questions you should have the answers to through your research. Why the target market is buying, is it that your product is the best or is your brand name associated with quality products? Where is most of the product purchased? Does in vary by geographic region or season? Is your product meant to be used with another product or is it a standalone product? Is it a product that will be purchased frequently or infrequently? Knowing this information about your target market will go a long way into putting your product in the best position to succeed.