For any business to succeed in growing its customer base, the company’s target market and its key message(s) need to be crystal clear to everyone in the organization. As different customers respond to different messages, it is crucial to have a focus on who you are targeting and what your value proposition is to this group of people.

Target Market

During my market research course, I often hear my students/business owners claim, “we sell to everyone!” Just because “everyone” can benefit from your products or services, it doesn’t mean that you should sell to anyone for the following three reasons:

1) Brand Preservation

Let’s use Toyota and Lexus as an example. Did you know that Lexus is a division under Toyota? The Japanese car manufacturer has a reputation for its quality vehicles that are economical at the same time. In order to compete with other luxury vehicle manufacturers and retain its current customer base, Toyota started, branded and marketed a new division in 1989. If Toyota simply produced luxury vehicles under the same name, its customers would be confused and its brand diluted. It is very powerful when all of your customers can agree on who you are as a business. That’s when you know your marketing is working.

2) Niche Development

As much as there are benefits to being a generalist, having a niche and serving a specific customer base allows you to excel in what you do best and occupy a space in the market place that belongs only to you. Every consumer type has its unique needs and purchasing benefits they seek. By trying to be everything to everyone, especially when you’re under-resourced, you run the risk of not serving any one customer group well. You also forego the opportunity to establish expertise.

3) Budget Consideration

Different customer groups respond to different marketing messages. If a sports equipment retailer such as Comor Sports tried to target both young sports enthusiasts and silver-haired retirees at the same time, its marketing expenses would be exorbitant as it would have to create different messages through different promotional mediums in order to have an effective reach.

To define your target market, the first step is to study your current customers to see who brings in the most business and what their common characteristics are. It’s also important to understand what types of customers are most ideal to work with and generate the most profit for your company, assuming that yours is a for-profit business. By studying and understanding your competition, you can carve out a niche that other businesses aren’t fighting for. You can have multiple target markets as long as you have enough resources to reach different market segments with different messages, positions and promotional means. Again, Toyota is a good example with its separate Toyota and Lexus makes.

Key Message(s)

Your key marketing message is what grabs your target market’s attention. It’s a statement to explain why they should trust and do business with you. In marketing terms, we call it your business “value proposition”.

Why is your key marketing message important? Well, if you have a great marketing message and combine it with effective marketing promotion, you will have addressed your ideal customers’ innermost desires and needs for your products or services. This connection certainly makes selling much easier and provides a clue for how to create a winning marketing message.

The marketing message should speak directly to your target market(s), their needs, wants and the innermost desires. Consumers buy from emotions. By understanding their triggers, what solves their problems or what satisfies their needs and wants, you can present your solutions and why your products or services match what they’re looking for. Backed by your results and what makes you different from your competition, you now have a very compelling key marketing message.

The Importance of a Marketing Plan – PART 3

The Importance of a Marketing Plan – PART 2

The Importance of a Marketing Plan – INTRO

Stay tuned for Part 2 of “The Importance of a Marketing Plan”.