Before you even attempt your dream startup, you first need to know who it is that you are marketing to. Defining your target market will determine the success of your marketing strategy, and you will see the fruits of a successful marketing campaign through your ROI (Return on Investment.) ROI is simply a metric used to determine your company’s profitability. Obviously, defining your target market is the catalyst that will determine the growth and profitability of your business.
Now that you know what you need to do, let’s get down to the “how.” By what process do you narrow down your target market? Do you make assumptions about your target customer base and plan your entire marketing strategy based on what you think you know? There must be a better way.
Good news! There is. By implementing the following four strategies, you can effectively pinpoint your target market to maximize ROI:
- Assess your company’s value proposition
- Create a sample demographic and psychographic profile of your target customer
- Analyze your competitors
- Determine what makes your company unique and appealing
Assess Your Company’s Value Proposition
What valuable solution, product, or service does your business provide? Do you offer a solution to a problem? If so, you first need to determine what target market most likely has this particular problem. For example, are you offering daycare to working mothers? If so, this instantly narrows your target market down to just “working mothers.” You can further pinpoint a specific age group and demographic within this broader target market that your company caters to. See how helpful this exercise can be?
Create a Demographic and Psychographic Profile of Your Target Customer
Demographics refer to where you live, your age, your occupation, and so on. Psychographics, “on the other hand, offer a deeper look into who people really are, like behaviors, values, personality, and lifestyle.” To help you define your brand’s target market, you can create a sample profile of your target user’s demographics and psychographics. Studying both areas will provide your business with a more holistic, comprehensive analysis of your target consumer.
Analyze Your Competitors
A competitor analysis reveals how your business is performing in relation to the competition. Use the following questions when researching the competition: Who are your top competitors? What uniquely positions your company to provide a better solution to a problem than your competitors? What specific marketing strategies are they utilizing to yield results? What strategies aren’t working for them? As you can see, pricing isn’t the only subject area worthy of research. There are myriad factors to consider in your competitive analysis. You could be selling your business short by not sourcing this valuable data.
Determine What Makes Your Company Unique and Appealing
What attributes and values set your company apart from the others in your field? By honing in on the quirks and unique selling points that distinguish your business from other similar organizations, you will be able to better market your product or service to your target customers. Target the market that shares your values and sense of purpose.
Using Your Data to Narrow Down Your Target Market
By combining all the data you have sourced through the implementation of the above four strategies, you will gain a more comprehensive understanding of your target market. Effectively narrowing down on your target market will maximize your business’s profitability (ROI) because your marketing strategy will be aligned with what your targeted users want.
[CTA]: If you would like to learn more about how to define your target market to maximize your ROI, contact CONVRG today so our team of expert digital marketing specialists can guide you through the process.
Brittany Baugher is a Copywriter at CONVRG Integrated Marketing Solutions. CONVRG offers a strategic, results-driven full stack marketing solution so your business can thrive and get the most out of its digital presence.