How do you choose your target markets?
It starts with some “outside the box” thinking as to possible audiences who might become buyers, or who might buy more than they have in the past. Sometimes, businesses limit themselves by not considering broader geographic targets, new industries, different departments within customer organizations, or new demographics.
Once a strong list of possibilities is generated, analysis can begin. There are many factors that determine whether or not a given target market will be a good choice. At Tenato, we evaluate your possible targets with a pioneering approach that considers several factors, such as:
• How long the sales cycle is likely to be
• The number and quality of competitors already present in that area
• How well your brand is recognized within that target market
• What the volume of that target’s business might be
• Whether there is prestige associated with gaining that target
Depending on the industry and situation you are in, some factors will be more pertinent than others. For example, if cash flow is an immediate concern, targeting customers who can be sold quickly (i.e. for whom you have a short sales cycle) may in fact be more important than getting the most profitable clients first. This is why after scrutinizing the above factors, we weigh and test them to better understand the target priorities.
Using this approach, it becomes clear that some target markets have much better potential than others. The question becomes, should you target one, two, three or more areas? We will guide you in making this important decision, which then affects your messaging and communication strategies.