What’s a target market?
Wikipedia defines a target market as “A group of customers a business has decided to aim its marketing efforts and ultimately its merchandise towards”.
In other words, it’s the group of people you want to influence to become your customers.
Inexperienced business owners sometimes think everyone could be a customer and so their target market is – you guessed it – everyone.
This leads to wasted resources. Advertising aimed at people who aren’t likely to become customers is a waste of time and money.
You need to find the people who have the potential to easily become your ideal customers, who need your services (whether they realize it or not), and who have the ability to pay you. These people make up your target market.
Narrowing your target market lets you concentrate your advertising efforts on people who’ll give you the highest return on your investment (ROI).
How to find the right target market for your business
If you run a business, you’re already marketing to a specific group whether you intend to or not. You can increase your businesses profitability by narrowing your target market down to the people most likely to become paying customers.
For example, let’s say ‘Ellen’ is a Realtor in a suburban city called Southtown. Ellen makes a commission for each home she sells. The more expensive the home, the higher her commission.
A brief overview of Ellen’s target market probably looks something like this:
• ages 25-65
• both male and female, but with a slight emphasis on female
• household income of $70,000 or higher
• live within a 20 mile radius of Southtown
• current homeowners or someone intending to purchase a home in the next 2 years
• people with children at home or who plan on starting a family in the near future
A person who fits this description is likely to hire a Realtor like Ellen to buy a house.
Figuring out how to reach your target market
Now that Ellen has defined her target market she needs to figure out how to reach them. Advertising is important because if people don’t know Ellen exists, they can’t hire her.
We’re going to use golf course advertising as an example of a good match for Ellen to reach this type of customer.
Breakdown of the average North American golfer:
• More than 50% of golfers are aged 19-50
• predominantly male, but golf is the fastest growing female sport
• household income of $100,580, which is 200% higher than the average American
• 91% are homeowners
• 68% of golfers are married
This means the average golfer fits in Ellen’s target market.
By investing in golf course advertising Ellen will be able to directly reach people in her target market. She will see a higher return on investment than if she advertises in an environment where fewer of her ideal customers from her target market are present.
Here are some articles that can help you learn more about defining the target market for your company and choosing the best type of advertising to reach them:
If you’re interested in seeing if the golfer demographic would fit your target market, you can learn more about the average American golfer here.
Will golf course advertising be effective for your business?
Because the average American golfer is such a highly sought after demographic with a middle to high income level, business influence at a high level, and desirable spending habits, they fit into the target market of a wide range of businesses.
Advertising at a golf course in the local community means you’ll reach customers already located near your business. This is a substantial benefit not guaranteed with most types of advertising.
If you’d like to learn about advertising opportunities at a golf course in your community call us at (800) 824 8311.