Why is target marketing important?

My last four posts dealt with reasons why small business owners don’t use target marketing. You can link to the first of these posts below. Then each links to the next.

Why Some Small Business Owners Don’t Use Target Marketing

This post covers the importance of target marketing to successfully market your small business.

To answer the question “Why is target marketing important” first requires answering three other questions:

• What Is A Target Market?
• Why Is Target Marketing Important To Market Segmentation?
• Why Is Target Marketing Important For Conserving Resources?

What Is A Target Market?

A target market represents the people most likely to buy what you sell.

These people have something in common that solidifies their desire for your product or service. And that something distinguishes them from the market at large.

For example, the market at large includes people of all ages, all income levels, all education levels, all types of occupations, all social classes and all lifestyles.

But you can’t market to all these people at once. They are just too different.
So you have to pick a specific group of people from the market at large and market specifically to them.

Your best potential customers will be in only one age group, one income level, one education level, one occupation type, one social class and one lifestyle. By identifying the characteristics that best represent people who desire what you sell, you can market specifically to them.

So one answer to “Why is target marketing important?” is that it enables you to concentrate on people most likely to buy what your business sells.

Why Is Target Marketing
Important To
Market Segmentation?

Market segmentation is the process of distinguishing your target market from the market as a whole. It’s the actual research process that makes target marketing possible. Market segmentation is what marketing experts call this research process.

There are many ways to conduct market segmentation research, but the most common involves first determining the target market’s demographic characteristics. This in turn reveals many psychographic and behavioral characteristics. Using age to reveal generation and life stage is just one example.

Why Is Target Marketing
Important For
Conserving Resources?

Target marketing conserves your small business resources for marketing to the people most likely to buy what your business sells.

In this day and time, you can’t afford to waste any resources. You need to get as much return from your marketing investments as possible.

So having a target market is vital. It enables you to sell more products and services with fewer marketing resources.

To read more about target marketing, see  target market profiles.

You can get a free copy of my Matrix Market Segmentation report by completing the form below:

Posted 11-5-08:
Why Is Target Marketing Important?

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This entry was posted on Wednesday, November 5th, 2008 at 6:20 am and is filed under Target Markets. You can follow any responses to this entry through the RSS 2.0 feed. You can skip to the end and leave a response. Pinging is currently not allowed.