Friday, April 17, 2015

Not Everyone is Your Target Customer

Every so often I hear a pitch by a small business owner that overtly or indirectly suggests that they target customer is "everyone" who (fill in the blank).  Maybe the product or service is pizza or insurance or landscaping or printing.  The cruel reality is that this is never the case, regardless of geography, product, service, or time.

We want to be as realistic as possible with our expectations as expressed in our business and marketing plans.  Our target customer is a good deal more limited than we may think.  For example:

1) Even with the advent of e-commerce, geography is a consideration.  Consumers will likely not travel beyond a certain radius for what we sell.  Depending on the product or service that could be as little as a mile or two.
2) Not every consumer has the budget or same price sensitivity.  Incomes vary.  Circumstances vary.  Many people are amazingly frugal and will find ways not to buy something they use, either making their own or finding used or substitute products.
3) Consumers may be strongly bonded to an existing provider, and no price point or other incentive will tear them loose.
4) The consumer may not like or be able to use what you sell.  There is always, as they say, someone who hates ice cream (for example).
5) And, it is possible your own advertising, promotion, or reputation worked against you among some consumers, no matter how excellent your work.

Are you overestimating your target market potential?

No comments:

Post a Comment