Wednesday, January 3, 2007

Define target markets

In Friday's post we set some marketing objectives. Today, we're going to define our target markets. A target market is a specific demographic targeted by your advertising and marketing efforts. For example, one of your objectives in the new year may be antique dealers we spoke about on Friday. Your target market may be simple, such as "all antique dealers within a 50-mile radius." It may be more specific, however, defining key demographics such as age, sex, occupation, type of business, revenues, or other key specifics of the market segment.

If you're pushing a workers' compensation program that is accepting auto dealers, the defined target market may be "all new and used auto dealers with over five employees within these zip codes."

If you're targeting Hispanic business contractors, your target market may be all business members of a local Hispanic Chamber of Commerce.

If you're an adjusting firm that wants to handle claims for managing general agents (MGAs) writing professional errors and omissions coverages, your target market may be found in various trade journals and on the Internet.

Be specific in your target market before you determine the vehicle you will use to get your message to that market. For example:
  • We will target auto dealers with over 25 employees
  • We will target MGAs who write business in the states of . . .
  • We will target Hispanic contractors who work in masonry and fencing
  • We will target mall antique dealers (those who rent space to other antique dealers)

Once you have defined your target marketing, you can then determine the best way to hit that target. Tomorrow, we'll move into the next phase of your marketing plan to discuss the best vehicles to reach your target market.

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