Defining a New Target Market: The Web Marketing Process (part 8)

This article is part 8 of a series. You'll find part one here. And part 7 here.

Get live updates as each new part is released: Follow on Twitter.

Lead generation can be used to expand into new markets. For example...

• You may discover your existing client base isn't easy to locate on the Internet, so you're forced to find a new market
• Perhaps your business is looking to increase its revenue by marketing an existing product to a new audience
• Your business may introduce a new product designed to appeal to a different audience, such as...
• Younger people
• Older people
• A higher or lower socio-economic group
• A different lifestyle
• A different geographic area
• Maybe even an International audience

Any time you expand into a new target market, it's essential that you understand what drives that market. This isn't necessarily a matter of understanding the demographic, socio or geographic make-up of the market.

It's about understanding how to create an offer that appeals to the people in your target market.

Lead generation requires that you overcome human inertia, and motivate a person to take the action you want (i.e. to respond to your offer).

To do this, you need to know enough about your target market to understand what sort of offer they won't be able to resist.

If your company has no experience with this new market, you're going to need to get it. This may involve market research. It can also involve a series of trial campaigns.

In part 9 you'll look at the role and use of market research in the web marketing process.

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Target Marketing: The web marketing process (part 6)

This article is part 6 of a series. You'll find part one here. And part 5 here.

Get live updates as each new part is released: Follow on Twitter.

Target marketing is an important component in the web marketing process. It has two practical applications in lead generation...

1. It improves your conversion ratios
2. It helps you find good places to advertise

It improves your conversion ratios by helping you find people already predisposed to respond to your offer.

Improving conversion ratios, even by a small amount, has a drastic impact on your sales. For example...

• Image all 3 of our conversion ratios are 1 in 10 as follows...

• 1,000 visitors become...
• 100 leads, which become...
• 10 appointments, which become...
• 1 sale

• Thanks to target marketing, we manage to improve our ratios to 1.5 in 10 as follows...

• 1,000 visitors become...
• 150 leads, which become...
• 23 appointments, which become...
• 3 sales

We've tripled our sales via a tiny improvement in our conversion ratios. And lest you think an increase from 10% to 15% is unlikely, I achieved an improvement of 628% by changing 4 words in a letter, and applying bold and underline to them.

This change to a direct mail letter was designed to appeal directly to a specific target market. The bold and underline helped make the words stand out.

That's what proper target marketing will do for you. And why tracking your results is essential (i.e. so you know whether or not your changes have worked).

Target marketing helps you find good places to advertise because you better understand where your best prospects are likely to hang out online, and what they're looking for.

This also improves your conversion ratios, because it helps you find people who are ready to say yes.

Gaining a proper understanding of your target market, and what they do on the Internet, is an essential part of setting your objectives.

For example, a stamp collecting web site might convert 1 in 50 visitors sent from AdWords. The same sales copy might convert 1 in 20 visitors from an ad placed on a specialist web site.

Why? Because the specialist site already attracts the very people you're looking for.

These people are more likely to understand why they're clicking on your ad. And the benefits offered by your product or service.

What's more, properly understanding the target market offers another benefit. It helps you to construct a more attractive offer. One that is more likely to excite your target market.

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Target Marketing - The Critical Success Factor

Every now and then I'll meet somebody with a fairly low opinion of marketing. Such people seem to love nothing more than sharing their cock-eyed view of the world.

Recently I had the 'good' fortune to be trapped with just such a person. He proceeded to tell me that targeting was a load of rubbish. His particular approach to marketing is as follows...

• My product is marketed at everybody
• I don't want to risk losing a sale by excluding someone
• If they're alive and have money in their pocket, they're in my target market

This person is certain he's never made a profit on any advertising he's ever bought. Naturally, he blames the advertising rather than himself. Naturally, he has no data to back up his claims. And naturally he thinks marketing is a scam.

What's interesting to me about this person is how his comments about target marketing illustrate why his advertising efforts have failed.

His unwillingness to consider the purpose of a target market is the very thing that makes his advertising ineffective. The plain fact is, ad copy can't be powerful if it isn't written with its intended audience in mind.

The things you need to say to get a 50 year old excited about your product are different to those needed when talking to teens.

Knowing who your target market is makes life much easier. Here's a list of everything it can tell you...

• Where to advertise:
  If your target market consists of single parents, you can use Google to find the sites they already visit
• How to write copy:
  If your market is young urban teens in the UK, it's useful to write the way they speak
• What to offer:
  Once you know where they hang out online, you can observe what they're interested in. This research will help you construct a powerful offer
• How to set the price:
  Find out what they're already buying, and price accordingly
• Affiliate opportunities:
  In your online travels you'll come across plenty of sites that market complimentary products. Touch base, and discuss joint-marketing opportunities. Twitter can help you find and build these types of relationship
• Social media:
  Some target markets are very active in certain social media. This can help put you in touch with your market, and is an excellent way to observe your market and gain a deep understand of what motivates them
• Lead generation:
  Lead generation only works when you have powerful copy and a compelling offer. Without a clearly defined target market, lead generation will fail (as will direct sales)

The importance of target marketing can't be overstated. Every marketing activity ought to flow from target market. When the audience is well defined, and properly understood, everything seems obvious and simply falls into place.