Target Marketing involves breaking a market into segments and then concentrating your marketing efforts on one or few key segments. Well, this may not be new news to most people.
During the past few weeks and a number of times, I heard some small business owners still talk about catering for all pocket sizes. How can they?
A small business owner doesn’t have the millions of dollars or dinars to target everyone. The success and the money in their small business is to target a well-defined market segment and then begin to build their business and marketing around satisfying the needs and wants of that narrowly defined target market.
It is the key to a small business success!! …
The small business simply cannot be all things to all people. As a customer, I want to see, feel and build a relationship with businesses that exist to cater for my needs. If a business owner is looking for everyone, how can he/she cater for my specific needs? How can they find the time or the resources to identify my frustrations with their type of products and services? How can they expect me to be loyal to their business and be the “to-go-to” place to solve my specific problem? They simply can’t!
Small businesses that target everyone will find themselves losing money. Why?
Because of bad targeting, they will find that some of their customers are not paying their bills on time. They will not be able to build customer-loyalty with everyone and get referrals from everyone.
They can’t possibly appeal to everyone!!…
If they don’t have a clear target market, how are they going to differentiate themselves from the rest of the market?
Long time ago, when I was studying marketing at university, I heard the expression of being “Stuck in the Middle”. This strategy was suggested by Michael Porter. He also suggested that this strategy is unlikely to create a competitive advantage. This concept still holds true.
John Jantsch the author of the bestselling book “Duct Tape Marketing” came up with a simplified approach to building a strategy. He suggested that for any strategy and corresponding set of tactics to work, you must appeal to a narrowly defined ideal client.
We simply cannot do everything well!!…