Blindly targeting anyone who may not be receptive to your product is one of the fastest ways to squander your limited marketing budget. You will also have a difficult time generating sales if you keep on selling to the wrong group of people.
Another drawback of not targeting the appropriate market for your product is how readily the competition can drown you out. There are lots of business niches aiming for a slice of highly saturated markets, and yours is just one of them. Defining your potential customer base before embarking on a full-swing marketing campaign increases your chances of succeeding.
How do you know you have picked the right market? Consider the following indications.
One, your business model is viable. What if your product or service is something that people use but may not want to pay for? If that is the case, try the freemium model of doing business. Allow a basic version of your product to be used for free. Then generate your revenue from customers who want to use the product’s advanced features. This model has worked for software maker AVG. In 2012, AVG enjoyed a 13-percent profit margin and sales of $355 million.
Two, your chosen market is backed by strong trends. Industry trends are crucial because they can dictate what platform to use in order to effectively sell your product. The earlier you can predict trends, the better you can establish your brand. An example of this is the robust opportunity brought about by mobile advertising, a burgeoning phenomenon that initially reared its head in 2007. What if you were to preempt something as big as mobile advertising in its early stages?
In a nutshell, recognize the two signs—a feasible business model and solid trends supporting your endeavor—that indicate you are targeting the right market. Without them, your business may have a hard time achieving long-term success.