Find Your Target Market Without Wasting Time and Resources

Posted by michaelringrose on June 28, 2015

Find Your Target Market Without Wasting Time and Resources

You are about to learn how to attract your target audience without wasting precious time and resources. You will avoid costly and time wasting blanket marketing that sucks up your marketing budget and produces little of value.

There are two questions that need clear answers:

What do people want to buy from me?

What other related products are they already buying?

The answers will inform you as to what potential customers are predisposed to want your products or services. Then you need to come up with an attractive incentive that you can offer other businesses with the same customer base with a view to sharing the base to your mutual benefit. This needs to be a “Win-Win” proposition.”

Here is the basic idea: You need to identify existing businesses who have the same customer profile in the same market that you are seeking to do business with.

Use your Networking Events to strike up a relationship with those business owners and present to them the benefits of joining with you to create an incentive for customers to purchase from both of your businesses. This could be by way of JV Partnership in relation to certain products or services or a shared Advertising Program where you arrange to split or otherwise share marketing collateral.

The result is you have an wider or additional audience to market to and they generate an added value from their customer base as well as, if they so wish, offering their customers additional choice and opportunity.

How do you calculate the value to you of this proposition? Follow Jay Abraham’s formula – you will find it very helpful. It helps you calculate the Live time Value of your customer.

Here is an explanation of what it means:

LV = (P x F) x N – MC

  • LV is the life time value of a customer
  • P is the average profit margin from each sale
  • F is the number of times a customer buys each year – number of transactions
  • N is the number of years customers stay with you
  • MC is the marketing cost per customer (total costs/number of customers)

It is imperative that you can calculate how much you can afford to spend in order to attract a new customer. There is little gain in spending $100 on advertising if all it yields is $10. One you have enough information to enable you calculate how much you need to spend to attract a new customer, then you are in a good position to know what kind of incentive you can offer to a business to enable you attract more customers.

So here is what you need to do in three easy steps:

  • Identify businesses and companies that have the target market you are aiming at.
  • Create and present and incentive to them that will demonstrate to them that there is additional value in their sharing the customer base with you.

3                      Target your marketing strategies towards this group of predisposed clients and customers.

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