Target marketing

What is target marketing?

The practice of identifying a product’s ideal customer and targeting them to maximise sales

Market segments can be defined by: • • • • • Geography Income Age Sex Personal interests …anything universal among the group of customers

Customer research Entrepreneurs need to research their target markets before launching a business Many don’t, however, and struggle to realise the potential of their product or service

Researching existing customers Talking to repeat customers can help businesses identify what traits and habits unite them as a market segment… They can then use that knowledge to attract more people like them to their product

Customer databases Databases not only help businesses recognise customer segment traits, they can also record buying patterns These help businesses identify more of their customers’ needs

Finding more ideal customers Businesses often export or go online with e-commerce websites to gain access to more of the customers their products target

Competitor research Who are your rivals targeting?

Can you do it better than them?

Re-visit unviable markets Markets are always evolving What wasn’t a viable idea yesterday might be viable today

Adapt to untapped markets Can you apply your product, service, assets or knowledge in a different way to meet the needs of an entirely new market segment?

Creating a market Sometimes, an innovative new product isn’t designed with a customer segment in mind These products can only succeed by creating demand

Find out more with Business.govt.nz:

Business.govt.nz provides free access to a wide range of resources, including tools and interactive content. It acts as a gateway to government and private sector business information, news and services.

Next steps: • • • • • Assess the health of your marketing Business toolbox from Statistics New Zealand Marketing and sales Finance and money Assess your financial health