#1 Reason To Use Target Marketing In Small Businesses

Target marketing is suited for small business owners for the following four reasons.

1. It’s targeted to the people most likely to buy.
2. It often creates quick sales.
3. It requires few resources.
4. It’s easy to design to appeal to a target market.

Target marketing includes direct mail. When you know your target market characteristics and buy lists of just people in your target market, you can greatly improve conversion of your direct mail campaigns.

This post covers the first of these reasons. The remaining reasons will be posted in the next three days. If you are coming here after this series of posts are published, you can go to the next in the series by clicking the following link: #2 Reason To Use Target Marketing In Small Businesses.

Target Marketing Goes Only To The People Most Likely To Buy

Target marketing enables you, as a small business owner, to distribute marketing messages only to people in the your target market. If you have done good marketing research, you’ve learned much about your target market, and your target market consists of the people most likely to buy your products and services.

Target marketing is better than mass marketing because it enables you to distribute your marketing messages to just people in your target market through several ways.

Target marketing can get new customers from a purchased mailing list.
You can purchase a postal mailing list with parameters limiting the list only to people in your target market and then mail directly to that list.

Direct mail may get a conversion rate of three to four percent, compared to one percent or less for mass marketing methods that require a similar investment.

Target Marketing Can Encourage Your Former Customers To Buy Again.

You can limit marketing to people who have bought similar products from you before. Your former satisfied customers are inclined to buy from you again. So marketing to them often results in more sales than marketing to people who have never bought from you. Plus, if you are keeping track of your customers, you don’t have to buy a list.

Target marketing can win customers from similar businesses.
You can buy a list of people who have bought similar products from your competitors or related products from other businesses.

For example, if you sell swimming pool chemicals, buying a list of people who have recently purchased a swimming pool will provide you with great leads. Likewise, if your chemicals don’t contain chlorine, buying a list of swimming pool owners, who presently by chlorinated products from your competitors should provide you new customers.

In fact, if you don’t know the demographics for people most likely to buy your product, buying a list of people who purchase competitor products is a great way to discover your targete market’s demographics. Some mailing list brokerages will provide demographics for the list. If not, you can often collect basic demographic information though your order form.

Either way, you can then use the demographics as parameters for other mailing lists. Buying a list by demographics is usually less expensive than purchasing buyer lists. Yet if you know the demographics of people who are most likely to purchase your product, the demographic list can often convert as well as a buyer list.

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