Apart from building your brand's visual and verbal identities, a brand is not a brand without it's customers. Targeting is an important step in building (or rebuilding) a brand, s it can inherently determine the future success of a company. Targeting allows you to select who your brand should matter to, and who you're setting out to help. However, targeting fits into a larger framework, so first you'll need to understand the STP model. STP stands for Segmentation, Targeting and Positioning. In order to properly target your best customers, you'll need to segment your market in order to identify your ideal buyers.
Segmentation is the act of splitting up your industry customers into different markets or segments, according to a specific trait. Segmenting your customers allows you to divide up your potential opportunities according to factors that may influence whether a customer may buy from you, or if they are even a customer in need of your services. There are four common ways to split up customers: demographic segmentation, geographic segmentation, behavioural segmentation and psychographic segmentation. Demographic segmentation splits customers up according to qualifiers like age, gender, ethnicity, income, marital status and education level. As one of the most basic and common ways to segment your customers, demographic segmentation is great for
Demographic segmentation splits customers up according to qualifiers like age, gender, ethnicity, income, marital status and education level. As one of the most basic and common ways to segment your customers, demographic segmentation is great for companies with a selling point centred around something like price, gender or age. For instance, you might not market to young teenage girls the same way you'll appeal to a middle-aged businessman.
Geographic Segmentation is done by splitting up your customers according to their location, whether by country, city, province or region of the world. This type of segmentation works well for climatized products like winter and rain boots/jackets, or for trends that are native to certain places.
Behavioural Segmentation uses the level of customer interaction to divide target customer bases. While a bit more advanced, this segmentation technique examines factors like customer loyalty, product usage rates and purchasing motivators. Although further research will be required in order to dissect these patterns, behavioural segmentation is useful for placing your product at top of mind for more occasional purchases, like school supplies at the end of August.
Psychographic Segmentation segments your customers according to their habits, hobbies and lifestyle choices. As a result, you'll need to get into the mind of your customers to understand what their everyday routines and activities look like. Psychographic segmentation targets customers according to their aspirations and values, and is commonly seen among the fitness and dieting industries.
In marketing, Targeting your customers refers to selecting an appropriate customer segment to address your marketing efforts towards. Selecting your best segment is normally based on size, accessibility, profitability, and sustainability of that customer market. In terms of size, the segment should be big enough to target in the long term. This also goes hand in hand with the profitability of the market - If the market is not big enough to continually gain a profit from, the investment on that market is not enough. In addition, your market should have a continual need for brand, making them a sustainable market in the long term. In terms of accessibility, you need to be able to reach and market to your desired segment. If your marketing message can not make it in front of your segment, your customers will not only be unaware of your brand, but may not make the move to do business with you.
It's important to take time in selecting the right segment for your brand. Your target segment can not be based off of a one time purchase or trend, and must not be susceptible to trends that may make your offering null. Consider your segment's potential for growth in not only population, but in income as well. Consider whether your segment will age out of your target and whether new customers will take their place. Targeting the right segment can be the detriment between a successful brand, and a brand on its last legs.
Like we've discussed in a previous blog, positioning is the approach in which you attract or entice your targeted segment. This usually includes comparing your current market position to where you'd ideally like to be, identifying your competitors, finding your unique selling point and reshaping your customer's perceptions of your brand accordingly. The whole process of the STP model is crucial in order to achieve the proper positioning to appeal to the right segment, at the right time in the right way.
Not targeting the right market? It's not too late to re-evaluate the potential of your current target market. However, if you decide to change your target, keep in mind that both your positioning and marketing efforts will need to change. Your message, and the method in which you connect with your customers should be tailored to personally suit your targeted segment. Not sure if your brand can appeal to a new segment? It's never to late for a rebrand. Connect with our team at email@example.com to find out your options.