Why is it so important in marketing strategy to have a well-defined target market? The benefit is your odds go up that your offer will be well-received by customers. That means better marketing ROI and less waste when deploying scarce marketing resources. The reality of running a business is that there aren’t infinite resources available.
Some of your colleagues may tell you that you can sell your product to anybody. However, that’s the shot gun approach. Niche marketers that know their customer profile well recognize the value of selling to a group of prospects no one else is going after. That’s what marketing strategy is all about.
To get started on identifying your target market, look at which customers drive
most of your sales revenue. For most companies, the 80/20 rule will apply.
Run a report that includes customer name, year on year annual revenue, total company revenue, etc. From there develop your customer profile. For small businesses, a report may not be necessary. In this case, you can rely on the customer knowledge you’ve accumulated over the many years you’ve been in business. We’d suggest validating it with a trusted advisor who understands your business’s strengths and weaknesses.
What attributes do these customers have in common?
B2B companies should think in terms of the customer’s industry, the size of their company, the call point (for example, what’s the title of the typical key decision-maker) and their geographic location. B2C companies would look for customer attributes like geographic location, number of household members, etc. Good marketing strategy also considers lifestyle and behavior attributes. These are the elements of your customer profile or, as some call them, the “persona”. It’s one of the most important elements in your marketing strategy and essential to channeling all of your marketing promotion and sales initiatives in the right, focused direction.