Importance of Target Market Segmentation for Brands
The most common mistake that new entrepreneurs make is trying to sell to everyone in the blind hope that this is the way to maximize their sales. They view the idea of defining a target market as a disadvantage that will limit their audience. Over time, it has become evident that businesses do better with a well-defined Target Audience. The big question then becomes, “How do you identify your Target Audience?” A great way to figuring this out is by using the PVP index which helps you ask three questions. What is your Personal fulfilment from the business? What Value are you adding to the market? and how much profit is your business likely to generate?
It therefore becomes very important to start by identifying an existing problem or gap in the market that your business can offer a solution for. According to Cindy Schilson (A famous Marketing guru), people don’t buy products or services, they buy solutions. As a business owner, you need to be certain of what you are selling, whom you intend to sell it to and mostly, why anyone would care to buy from you.More often than not, when whatever you are selling is need-specific, your customers see right past your pricing to the value they get from your products. When your products are relevant and valuable, people are often okay paying a premium price for them.
A clearly identified target audience allows you to craft a specific message that appeal specifically to them. This in turn allows you to implement a cost effective strategy that ensure your business focuses the available resources to a group that is most likely to buy what you are selling. A clear message to a well defined target audience is a more certain way to generate a higher ROI than spending limited resources trying to reach a mass market.
It thus becomes very clear that the old theory of, “shoot for the moon, if you miss you’ll land amongst the stars” clearly does not work in the marketing field. And to quote the famous Mal Pancoast, “The odds of hitting your target go up dramatically when you aim at it”. So, like all good dart players, spot the bulls eye, and go for it!
Article By Carol Muthoni, Strategy.