Importance of Defining Your Target Customer

social media can help build new customer trust

Who is your Target Customer ?

Why everyone is my target customer, I hear you cry in disbelief. But here’s why you should know who your target customer is. That is because some people are not good customers. Some complain for the sake of complaining, some have no money to spend on your goods and services, and others are as tight as a 5mm bolt forced in a 4.5mm nut. Then are you saying that I should look for customers who are grateful, rich, and free spending? Well yes and no, you see its a bit more complicated than than (life always is). You see these ideal customers that you have just found (the grateful, rich, free spenders) may still not want your product or service. Let me explain. Say for example you are a car manufacturer, producing reliable transport at an attractive price. The type of customer you are therefore targeting values reliability and also a low attractive price. Don’t assume that because the customer values a low price for the product, in this example a car, that they are poor. Its just what they value most as a consumer. Hopefully you are starting to see that you need a clear idea of the customer you have in mind, to sell to. This is probably easier for businesses that design and make things, as they may well have considered the customer that they wish to sell to. However if you are a hairdresser, or a butcher, you may not have thought about who you wish to sell to (Target Customer). There are various marketing tools that we use to help you identify your perfect customer, but this is only part of the story. Once we have identified your ideal customer for your product or service, we need to attract them to find out more about your product or service. Attracting customers interest is what Inbound marketing is all about, rather than trying to ‘Sell’ to them, as in traditional marketing. We are now in what Craig Miles would call the ‘third phase of marketing’. Phase 1 was prior to World War 2, and was very much ‘build it, and they will come’. In other words product manufacturers produced a car or a shovel for instance, and people bought it, because it fulfilled a need. Phase 2 really started to occur after the second world war, as manufacturers tried to make there products or services different from their competitors, to attract customers. This second phase was aided by advances in technology, such as cheap colour printing and the advent of commercial television. The aid these new post war  ‘Marketeers’ , various ‘tools’ and strategies were developed to help find out what people wanted. Finding out what people wanted through various market research methods, such as focus groups, and customer surveys, helped develop attractive products and services, to meet needs and desires. Going back to our car manufacturer example earlier in this text, only part of the potential car buying public, will buy the manufactures car. Some buyers may want so called ‘prestige’ models from prestige manufacturers, and be willing to pay a premium price. To illustrate my point, back in the late 1980s Mercedes cars bought out the Mercedes 190. The 190 was a saloon car, and similar in size to the  Ford Sierra. When the Mercedes 190 was launched, sales were initially poor, but why? Mercedes team of market researchers discovered that the similar ‘value’ price or the 190, to rival models from less prestige manufacturers, was actually putting off potential buyers. The reason for this is that they assumed that as it was priced similar to the Ford Sierra, that it was inferior to Mercedes usual high quality models. After small changes to the Mercedes 190, it was re-launched at a higher purchase price, and sales started to take off. Its all about perception. If your customers are looking for ‘Prestige’, and you don’t provide what they are looking for, they will go elsewhere. Its the same with ‘value’, if that is important to  subset of customers. We can help you identify how to appeal to your target customers, through traditional marketing research tools and analysis, and also inbound marketing techniques. Phase 3 is what we are increasingly entering, especially in the world of online marketing. Phase 3 is more about providing potential customers with useful information, so that they can get to know your brand, and also make informed decisions before purchase. This is where inbound marketing comes in. To find out more, call: 0800 832 1618

Who is your Target Customer ?

Why everyone is my target customer, I hear you cry in disbelief. But here’s why you should know who your target customer is. That is because some people are not good customers. Some complain for the sake of complaining. Others have no money to spend on your goods and services. And others are as tight as a 5mm bolt forced in a 4.5mm nut. Then are you saying that I should look for customers who are grateful, rich, and free spending? Well yes and no, you see its a bit more complicated than than (life always is). These ideal customers that you have just found (grateful, rich, spenders) may still not want your product or service. Let me explain further. For example you are a car manufacturer, producing reliable transport at an attractive price. The type of customer you are therefore targeting values reliability and also a low attractive price. Don’t assume because the customer values  low price, that they are poor. Its just what they value most as a consumer. Hopefully you are starting to see that you need a clear idea of the customer you have in mind, to sell to. This is probably easier for businesses that design and make things, as they may well have considered the customer initially. However if you are a hairdresser, or a butcher, you may not have thought about the ideal client (Target Customer). Various marketing tools that we use to help you identify your perfect customer, but  is only part of the story. Once the ideal customer is identified for your product or service, we need to attract them. Attracting customers interest is what Inbound marketing is all about, rather than trying to ‘Sell’ to them, as in traditional marketing. We are now in what Craig Miles would call the ‘third phase of marketing’. Phase 1 was prior to World War 2, and was very much ‘build it, and they will come’. In other words product manufacturers produced a car or a shovel for instance, and people bought it, because it fulfilled a need. Phase 2 really started to occur after the second world war, as manufacturers tried to make there products or services different from their competitors, to attract customers. This second phase was aided by advances in technology, such as cheap colour printing and the advent of commercial television. The aid these new post war  ‘Marketeers’ , various ‘tools’ and strategies were developed to help find out what people wanted. Finding out what people wanted through various market research methods, such as focus groups, and customer surveys. This helped producers develop attractive products and services, to meet needs and desires. Going back to our car manufacturer example earlier in this text, only part of the potential car buying public, will buy the manufactures car.

The Effect of Price

Some buyers may want so called ‘prestige’ models from prestige manufacturers, and be willing to pay a premium price. To illustrate my point, consider the Mercedes 190. Back in the late 1980s Mercedes launched the Mercedes 190. The 190 was a saloon car, and similar in size to the  Ford Sierra. When the Mercedes 190 was launched, sales were initially poor, but why? Mercedes team of market researchers discovered that the similar ‘value’ price or the 190, to rival models from less prestige manufacturers, was actually putting off potential buyers. The reason was they assumed that as it was priced similar to the Ford Sierra, that it was inferior. They assumed it was inferior to the other Mercedes models that were much more expensive. After small changes to the Mercedes 190, it was re-launched at a higher price, and sales started to take off. Its all about perception. If your customers are looking for ‘Prestige’, and you don’t provide what they are looking for, they will go elsewhere. Its the same with ‘value’, if that is important to  subset of customers. We can help you identify how to appeal to your target customers. We use traditional marketing research tools and analysis, and also modern inbound marketing techniques. Phase 3 is what we are increasingly entering, especially in the world of online marketing. Phase 3 is more about providing potential customers with useful information. This enables them to know your brand, and also make informed decisions before purchase. This is where inbound marketing comes in. To find out more, call: 0800 832 1618

Craig Miles: Marketing & Tech at Yesway Digital.
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