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The Definition of Target Market

The first step to developing a successful business plan is answering the questions "who needs my products or services?" and "why?" The answers to these questions determine your target market, the specific group or groups who should be the focus of your marketing and sales efforts.

    Segmenting

  1. Target marketers divide potential customers into groups with similar characteristics, called segmenting. Common segments include demographics, psychographics and geographic.
  2. Demographics

  3. Demographically segmented customers share statistically similar characteristics such as age, income, gender or occupation. Selling to white-collar professional women between ages 30 and 45 is an example of demographic segmentation.
  4. Psychographics

  5. Psychographically segmented customers share similar lifestyle characteristics such as being vegetarians, dog lovers or suburbanites.
  6. Geographic

  7. Geographically segmented customers share a similar location. For example, a store may send postcards to everyone in a certain ZIP code or area code.
  8. Benefits

  9. According to the United States Small Business Administration, target marketing keeps a business owner focused on the most important aspect of their business--the customer. Targeting the right customer for your product or service will increase the efficiency of your sales and decrease marketing and operation costs, potentially translating into a larger profit margin.

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How to Cut Down on Small Business Advertising Expenses

Small business advertising is the greatest problem that the entrepreneurs face. If you have a small business then you may be facing the same problem. This problem can be easily cured with the help of a few steps. Remember that cutting down the expenses does not mean damaging the business. You will have to make sure that the business keeps running at its best and your expenses cut down campaign do not disturb the running of the business. This is the difficult part of this campaign. Most of the people can easily cut down the advertisement expenses but then they will sacrifice the business. This is not the tight course. Market is very important to you. You should research your market and then target it. It will reduce the budget by reducing the number of advertisement campaign that you are running. You may be running campaigns outside your native market. Remember that targeted advertisement is the most essential thing. You may wa