Target Market Series: Contractors

Target Market Examples

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Makeup companies market nearly exclusively to women, companies that sell construction tools or automobile parts market nearly exclusively to men, cigarette companies used to market specifically to teenagers so that they could become lifetime customers, and so on. Here are a few examples of companies and products, and their corresponding target markets. Toy and board game companies such as Hasbro or Mattel have a very specific target market. Interestingly, toy companies have to maintain a balance between marketing to parents and marketing to children. Their products have to be advertised in a specific way so that children are interested in the toys, but also so that parents are willing to buy them.

The target market, in terms of adults, includes people of a certain advanced age, since younger people are less likely to have children. Families with children tend to live in suburban areas rather than in large cities or metropolitan centers, so the target market probably also includes those people who live in suburban parts of the country or the world. Apple offers a huge variety of products, all of which have specific target markets, but a particular series of advertisements several years ago were aimed at a very specific target market. In this campaign, Apple was advertising for a target market of young tech-savvy people, perhaps people who were eager to embrace the future of technology, which Apple convinced them they could not do if they owned a PC.

Amazon is a hugely successful global company, and in recent years they have developed an e-reading device that they named the Kindle. However, the initial target market for the Kindle was more specific. It included a younger demographic, because potential customers had to have a flair for technology, and be able to find their way around a tablet-like device. Younger generations are more likely to embrace changes and advances in technology, so it would make sense to market a new technology like e-readers to younger people.

The target market also included more educated people. Those who have pursued education beyond high school are more likely to indulge in reading for pleasure, and therefore more likely to buy an e-reader. The target market also included those people who earned enough money to spend a few hundred dollars on a device like the Kindle. In a basic sense, Kindles were originally marketed to young, smart, well-to-do consumers, because they were most likely to be interested in books and new technology, and also able to afford an e-reader. Alcohol companies provide a great example of companies who want to appeal to a wide variety of target markets.

Relatively cheap beers are advertised in a way that appeals to the target market of younger drinkers, such as college students and a bit older, who have limited money to spend on alcohol but still want to participate in a partying culture. Companies that manufacture and sell wine or bourbon, on the other hand, advertise to a target market of older consumers who are more interested in quality and refinement than they are in price.

Do your homework and create a smart marketing program. The Sales and Marketing section for our cycling rental business could start something like this:. We will not be the low-cost provider for our target market. Our goal is to provide mid- to high-end equipment. However, we will create web-based loyalty programs to incent customers to set up online profiles and reserve and renew equipment rentals online, and provide discounts for those who do. Over time we will be able to market specifically to those customers.

Just like in the Market Opportunity section, you may want to include a few more categories. For example, if your business involves a commission-compensated sales force, describe your Sales Programs and incentives. If you distribute products to other companies or suppliers and those distribution efforts will impact your overall marketing plans, lay out your Distribution Strategy.

The key is to show you understand your market and you understand how you will reach your market. Marketing and promotions must result in customers--your goal is to thoroughly describe how you will acquire and keep your customers. Also keep in mind you may want to include examples of marketing materials you have already prepared, like website descriptions, print ads, web-based advertising programs, etc. While you don't need to include samples, taking the time to create actual marketing materials might help you better understand and communicate your marketing plans and objectives.

Next time we'll look at the next major component in a business plan: Focus on your target market. Who are your customers? Who will you target? Who makes the decisions? Determine how you can best reach potential customers. You may plan to grow your business slowly so that you can maintain a small but manageable market share. Or, you may develop an aggressive growth strategy that causes you to establish a more flexible organizational structure that can adapt to new markets and rapid growth.

Regardless of the degree of market growth required to meet your particular business goals and objectives, the need for growth and a plan to accomplish it is fundamental to a successful business venture. Without it, you will leave your business vulnerable to market pressures such as increased competition or regional economic downswings. Planning and achieving market growth, whether aggressive or conservative, requires the application of some fundamental marketing activities and techniques.

These activities and techniques are incorporated in the following four steps needed to expand your business through new market development: Define your new target market s Step 2: Do your market research Step 3: Enter the market or look for another target market Step 4: Create a plan to enter the market Since your products, services and customers are unique, you will need to adapt these steps to your own needs when you apply them to your market expansion efforts.

Define Your New Target Market s The first thing you will need to do as you begin your market expansion effort is to determine the demographics and the geographic location of the new target market. Determine which of the following categories characterizes your expansion efforts: If you are targeting a new group, you will need to develop a basic profile of the new customers. The more you know about your target customers, the easier it is to develop a marketing strategy that will reach them.

Business Customers Type of Business: Of Years in Business: Individual Customers Buying Habits: Business Customers Special Needs: Reasons the new customer will buy your product: After you have defined your target customers and described how you can meet their needs, then you need to define the approximate geographic boundaries of your new target market. Select an area where you feel the target customer population is large enough to support your market expansion efforts.

The owner of the Pedal Power bicycle shop decided to expand its market by developing a mail order catalog for his products. The following is a portion of his customer profile AGE: Single or Divorced Parental Status: Not important Buying Habits: Prefer to analyze before purchasing bicycle equipment through catalogs. Willing to spend a little more for quality. Bicycling, running, hiking and other outdoor activities. What is Important to Him: Personal health, enjoying the outdoors, professional success and personal relationships.

What is Kobo Super Points?

Work 40 to 50 hours per week. Exercise primarily bicycling four to five times per week. The target customer would purchase bicycle supplies through our catalog because it is convenient, and we offer a good selection of quality products at the lowest possible prices. Our products are not much different, but many of our policies are.

We have an earned credit program that allows customers to accrue 5 percent of each purchase in a credit account that they can use at any time. After you perform the market research activities described in the next step, you may find that you will need to modify your target area boundaries, or find a new target area.

Identifying the boundaries at this stage will give you some ideas of where to focus your research activities.

Now take some time and complete the worksheet for your new target market. Do Your Market Research Once you have developed a customer profile and identified the extent of your new target market, then you can do some basic market research to determine the following information: What would customers be willing to pay? Current population trends of your targeted customers Expanding, shrinking or stable?

What are your competitors doing? What is the most economical? Can you establish a competitive advantage? The number and strength of competitors in the target area. Where are they located? What products or services do they offer? What is their image? What is their pricing structure? What is their performance history? What is their current share of the market? What are their strengths and weaknesses? Your market research is a very important piece of the market expansion process.

Target Market Series: Contractors

The more you know about your potential customer base and your competition, the easier it will be for you to identify your niche in this new market. Your data may even help you to decide whether or not you should focus on this potential market. Where to get the Information Your local college and public libraries are excellent resources for national and regional demographic and business-directory information. Here are some helpful resources that you may want to consult: County and City Data Book U. Provides information on population, education, employment, income, housing and retail sales.

Demographics and Spending Patterns. Listings of characteristics of U. These volumes identify dozens of local potential-customer characteristics. Statistics on regional consumer interests.

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Industry and Trade Outlook , U. Department of Commerce, annual forecasts growth rates and reports on production in the past year for industries. Current Industrial Reports U. CIRs provide information on production, shipping, inventories, consumption, and the number of manufacturing firms for over products. Census Bureau, every fifth year. The Economic Censuses report sales figures and trends.

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