How To Find And Sell To Your Target Market

When I teach small business classes on marketing strategy, I often ask participants the question, "Who are your customers? Who will buy your product?" I am often surprised that otherwise savvy small business people either have no idea who will buy from them, or they assume that 'everyone' will.

Assumptions like this can lead to wrong decisions, wrong pricing, wrong marketing strategy – and ultimately, business failure.

The most successful small businesses understand that only a limited number of people will buy their product or service. The task then becomes determining, as closely as possible, exactly who those people are, and 'targeting' the business's marketing efforts and dollars toward them.

You, too, can build a better, stronger business, by identifying and serving a particular customer group – your target market.

One of the first things you need to do is to refine your product or service so that you are NOT trying to be 'all things to all people.' Become a specialist!

For example, in my business, an eco-tourism company, we made some specific decisions early in our market planning. As a charter boat business, we knew that there were plenty of fishing charter operators in the area, and 'party boats' as well. So we decided that we would offer sightseeing or special event charters, and that we would not allow alcohol on board, or fishing rods. Yes, this decision eliminated a percentage of the market – but it also gave us a 'niche' that we could capitalize on, and expanded our market in a way that other charter operators could not take advantage of.

Next, you need to understand that people purchase products or services for three basic reasons:

• To satisfy basic needs.
• To solve problems.
• To make themselves feel good.

You'll need to determine which of those categories your product or service is the solution to, and be prepared to market it accordingly.

Your product or service may fit more than one category, too – our charter business primarily targets folks who just want to feel good – spending a day out on the water, relaxing and being waited on. But it also targets people who have visitors coming from out of town, or even overseas, because we represent a solution to the problem of "What will we do while our company is here? How can we entertain them, or show them our area?"

The next step in creating an effective marketing strategy is to zero in on your target market. Continue on to the next page to learn how to use market segmentation to define your target market.

Ten Low-Cost Ways to Promote Your Business

Business promotion is to running a successful business as practicing scales is to playing the piano well; it may not be a thrilling activity in itself, but you just have to do it! You should spend at least an hour a day on business promotion or planning how to promote your business (and more is better, if you can fit the time in)!

You promote your business by getting the word out. The first axiom of business promotion is that you have to do this consciously. You can't rely on other people to do it for you, no matter how great your product or service is.

The second axiom of business promotion is that like every other aspect of your business, it's a budgeted activity. But business promotion doesn't have to be expensive. Here are ten inexpensive ways to promote your business; all most of these will cost you is some time.

1) Use every outgoing piece of paper, and every electronic document as business promotion.

You have business cards, but you also put out a lot of other documents in the course of doing business. Check these to make sure you're using their promotional possibilities to full advantage.

For instance, business stationery is an ideal business promotion tool. Is your business name, logo, contact information (including URL if you have one), and slogan on your envelopes as well as on your letterhead? Or are your envelopes only printed with your business name and return address? What a waste! Your phone and fax numbers, your URL, and even a memorable slogan should be there, too. It's not just an envelope, it's a business promotion tool! You're sending it out anyway, so why not make it work for you?

The same goes for outgoing faxes, bill payments, receipts; whatever paper you send out should carry your full company message. And don't forget to make sure that your email has a complete signature that provides all your business information and a promotional tagline.

Electronic documents, such as email, are also easy to update with your latest business promotion information, whether it be a special price on your product or service, or letting people know that your company has won an award. If you need information about using signature files with particular mail programs, visit About Email Guide Heinz Tschabitscher's Signature links.

Articles and press releases are also excellent business promotion tools that you can use to promote your business inexpensively. Read on to learn what types of articles and press releases you should write and tips on where to send them to promote your business effectively.