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| Finding Your Target MarketAsk yourself… - “Who are your customers?” - “Who will buy your products?” Often people have no idea who will buy from them, or they assume that ‘everyone’ will. Assumptions like this can lead to wrong decisions, incorrect pricing, poor or zero marketing strategy – and in the end, business failure! |
| The most successful businesses understand that only a limited number of people will buy their product or service. The task then becomes determining (as closely as possible), exactly who those people are, and ‘targeting’ the business’s marketing efforts and investments (spends) toward them. You, too, can build a better, stronger business, by identifying and serving a particular customer group – your target market. One of the first things you need to do is to refine your product or service so that you are NOT trying to be 'all things to all people.' Become a specialist! For example, at Eagle Technologies, we made some specific decisions early in our market planning. As a card printer and consumables supplier, we knew that there were plenty of suppliers, so we decided that we would offer a single source solution, everything under one roof, in other words, all brands and would focus our UK attention on trade sales as no other company in the ID Card World did. We decided to offer exceptional support programmes to protect our reseller’s after-sales costs and make life simpler for them. Yes, this decision eliminated a large percentage of the market – but it also gave us a 'niche' that we could capitalise on, and expanded our market in a way that other distributors could not take advantage of. Next, you need to understand that people purchase products or services for three basic reasons: · To satisfy basic needs. · To solve problems. · To make themselves feel good. It is important to note that businesses, unlike individuals, buy products or services for three additional reasons: · To increase revenue · To maintain the status quo · To decrease expenses. If you fill one or more of these corporate needs, you have found a target market. You'll need to determine which of those categories your product or service is the solution to, and be prepared to market it accordingly. Your product or service may fit more than one category too – Eagle Technologies primarily targets companies that resale for profit – creating income and building a solid business proposition that provides a good lifestyle. Eagle Technologies also targets companies that do not know about desktop card printers for lead generation and market growth (stimulation/increasing awareness). For example many companies can up-grade from a cut and paste (expensive) card process, to a much more professional and automotive solution that is low cost. Because we present solutions to the problem of "How can I save time and money? How can we increase our image?" “How can we increase our customer base?” How can we maximise customer retention/loyalty?” we end up creating leads and further differentiating Eagle from the crowd whilst again creating reseller wealth, and of course our own! The next step in creating an effective marketing strategy is to zero in on your target market using Market Segmentation. First of all… · Is your product international or national in scope? · Or is it more likely that you will sell it primarily in your own region? In the case of Eagle Technologies, our primary market from the outset was national, but as we have evolved and now manufacturer our own leading brands we’re growing internationally. Our secondary market is providing national card printing services and onsite engineer visits for in and out of warranty repairs. Let's say that your primary market is local, and that your business community (to include non profit – NHS, Local Authority, schools, universities, charities etc.) has around 200,000 companies. The first thing you'll need to do is research the area and divide it into market segments: · Company size (turnover – Small, Medium or Large companies) · One site or multiple · HQ or branch · Number of employees · Type of company/industry (corporate, leisure, non profit etc) Note: In addition, you might want to find out how they purchase: seasonally, locally, only in volume, who makes the decisions? Remember: It is important to note that businesses buy products or services for three reasons only: to increase revenue, to maintain the status quo, or to decrease expenses. By now you should have a picture emerging of who you think your 'ideal' customer is … or who you want it to be. Depending on the nature of your business, (product/service focus), you might even be able to write a description of your customer. Eagle Technologies example: "Eagle’s target customer is a reseller providing security, vending, cashless payment, membership, visitor management, general office supplies (and others) to end users either locally, regionally, nationally or internationally. Our resellers need a hassle free value-add distributor that provides a service which enhances profits not erodes them. Based on the numbers you uncovered in your research, above, you may even know, for example, that there are approximately 9000 of those potential customers in your area! It may well be that 3000 of them are already loyal to a few competitors, but that still leaves 6000 who are not, or who have not yet purchased a card printer from anyone. Do the research! Lots of times prospective customers don't know about your company, or can't tell the difference between your company and others. It is your job, once you know who your best customers are, to 'target' the group that you've identified – even if you have competition. In addition, you may decide, using the example above that you'd also like to extend your target market outside of your local area. If you go back to the basic reasons why people purchase goods or services, and can find ways to target your efforts to that group and you may be successful in capturing a bigger share of the market! On the other hand, what if you 'specialised' your product or service and then researched your local target market, only to discover that there are probably less than 100 organisations who will buy from you? First of all, if those 100 are corporate customers who will spend thousands on your product or service annually, then you have nothing to fear and should expand your reach wider as you succeed. But if those 100 are only going to spend £100 every few years on your product or service – then you need to go 'back to the drawing board' of planning your business and perhaps determining a wider target market – but at least you are armed with all the information you need to start again, or go in a different direction. However, looking at the UK example there are 4.6million organisations. Today only a few thousand organisations are buying card printers annually out of a potential 1million to target… opportunity is plentiful. Let's face it – there's a market, and a target market, for everything. Hope this was useful. Maybe you would like to follow us on http://twitter.com/Eagle_ID , and facebook http://facebook.com/EagleTechnologies
Managing Director www.EagleTechnologies.co.uk …offices in the UK, Europe & USA. Eagle Technologies Ltd remains the worlds leading multi-brand desktop card printer product distributor providing all leading card printer and consumables brands, plastic cards, badge holders/lanyards, in/out of warranty repair solutions (including onsite services), card badging software, and a comprehensive bureau card personalisation and fulfillment offering. Eagle sells to resellers and adds value by providing a variety of products and services, including Plus-Ribbon (compatible with zebra, Datacard, Magicard and Fargo ID card printers), Plus-Clean & Plus-Card. Our mission is to grow the business of resellers by providing the services and tools which make them more efficient, effective and successful. Eagle customers have access to the industry's leading vendors, one of largest product inventories, and the broadest range of value-added services available.
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Sunday, January 3, 2010
How To Find & Sell. "IDentify Your Target Market"
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