The ALR Marketing Solutions Blog

Identifying Target Markets

Before beginning a marketing campaign it is important you first identify your target market. 

• Begin by determining why a customer would want to buy your product/service.

• Comprehensive market intelligence and research gathering is required to identify quantitative and qualitative patterns.
  

• Next, segment your overall market.

The process of identifying a target market it called market segmentation.  This is important because once you identify a niche using target segmentation you will be able to concentrate your efforts on targeted marketing to attract a specific consumer group.

 

Why segmentation is so important?

In marketing it is not uncommon to have a target market that would be comprised of various different demographics of people who can be profiled in to various different consumer groups.  For example, I had a client a few years ago that was an online division of a large regional bank.  Their goal was to get new clients to the bank and to have existing clients open up additional accounts.  If I had a saving account, I would have been encouraged to open a checking account and perhaps a certificate of deposit (c.d.) as well.

 

As you could probably imagine the target market for the online bank was a rather large group.  Their identified market was segmented into 5 consumer profiles.  These segments were based on age and income.  This meant that there were five different sets of marketing materials for any given campaign.  While the overall message may have been the same, the copy and images were different depending on who would be receiving the material.

 

Market Intelligence

Market research to gain intelligence on your consumers is vital to accurately determine whom your target is and what the best marketing strategy would be to reach them.  The process of gathering market research includes employing various techniques to collect, analyzes, and report data about potential consumer groups.

 

Segmentation

After the necessary market intelligence has been gathered you can then strategize the best approach to customize your advertising and promotional efforts for the desired result.  The campaign planning should include test market groups and test campaigns.  This is key for not only the long-term success of the marketing, but in order to be as cost effective as possible.  In the test programs the marketer should be able to identify what efforts will be successful and revise the strategy to best reach each consumer group.

 

For more information on identifying your target market contact ALR Marketing Solutions, a premier Atlanta marketing agency, for your free solutions consultation.          

10 Tips for Effectively Choosing a Test Market

Test Markets are groups used to gauge the viability of a product or service in the mass market, typically prior to a wide-scale roll out of the product or marketing campaign. 

Test Markets can also be comprised of segments of people tracked during a campaign launch who are not marketed to using the same strategy as the remaining total population of the market. 

It is important to understanding what a Test Market is before exploring the strategic options for effectively choosing a Test Market.

1. The Test Market should have a likeness to the planned distribution outlet.

2. There should be a relative isolation from other geographic areas or profiled segments.

3. The Test Market should be a comprised of a representative population size.  Be aware that the Test Market is only a representation of the total market, and results of the test may show a distorted outcome.

4. Availability of advertising media and public relation: the Test Market must have a reasonable amount of exposure to promotional outlets used in the test.

5. There should be stability of year-round sales.

6. Dominant media outlets should be available (if applicable).

7. Freedom from unusual influences: this may include industry dominance from a competitor.

8. In addition, be aware of the competition on the market; test market launches provide competitors with an advanced warning of your intentions.

9. Suitability of the market segment is key.  Profit potential should be gauged based on the company’s resources to serve the segment.

10. Market Intelligence and analysis is instrumental for obtaining and reviewing the results of the test. Examples of what you should seek to determine are:

·        Buyer intentions

·        Demands of the market

·        Controllable and uncontrollable decision factors of the market

·        Evaluate the decision process

·        Sales force estimates

·        Impact of environmental variables on the market segment

·        Collect all relevant information and identify best alternatives (if applicable)

·        Strategic Planning, based on the results of the test, to determine how to best allocate resources needed to best achieve your campaign’s objectives.

 

The results of a Test Market campaign, if executed effectively, could serve as a great tool for determining the strategy for the full marketing launch.  It’s often a great idea to consult with a Marketing Agency before developing and launching your Test Market campaign.