What is a B2B Target Market?
This article defines and then explains importance of creating a B2B Target Market important to fill your sales funnel with well educated buyers
In past articles we have discussed the overall best practices to build buyer awareness through an overall marketing strategy, we can move forward and start to think about how identifying leads that are more likely to turn into customers will allows us to create a target market that will help maximize marketing budgets.
Target markets are helpful because the drive businesses and sales teams to think in a holistic way about who their customers are, and who they to drive into their sales funnel. Successful marketing in any field requires an understanding of the customer, their wants and desires but also their goals. In short, building your business requires identifying and serving a target market.
Simply, a target market refers to a specific group of potential customers or consumers that a business or organization aims to serve with its products, services, or offerings. They are the people or businesses most likely to purchase your product or service. You can begin to identify your target market by using broad categories, like soccer moms or millennials, but you’ll be more likely to find sustained success in your efforts by being specific.
Your target market should be developed based on data, measurable statistics that you likely already have on hand. A target market doesn’t mean that you do not wish to sell to a broad customer base; rather it helps you identify the customers who are most likely to respond to your marketing efforts and tells you how the most efficient allocation of your marketing efforts is likely to show measurable results. You can sell to everyone, but you can’t target everyone.
A target market is a defined segment of the overall market that shares similar characteristics, needs, preferences, and behaviors. The values of the target should reflect the values of the business. A superluxury automaker, for example, does not advertise on AM radio, or using direct mail.
How to Build a Target Market
The process of identifying a target market involves conducting market research and analysis to understand the demographics, psychographics, and other relevant factors that define the ideal customer profile. Some key factors to consider when defining a target market include:
Demographics: This includes characteristics such as age, gender, income level, education level, occupation, geographic location, title and job function. These factors help in understanding the basic profile of the target audience.
Psychographics: This refers to the attitudes, interests, values, lifestyles, and behaviors of the target audience. Understanding psychographics helps to identify the motivations, preferences, and purchasing patterns of potential customers.
Needs and pain points: Analyzing the specific needs, challenges, and pain points of the target market is essential. This enables businesses to tailor their offerings and marketing messages to address those needs effectively.
Buying behavior: Studying the target market’s buying behavior, such as their decision-making process, preferred channels of communication, and sources of information, helps in devising effective marketing and sales strategies.
Competitive landscape: Assessing the competition within the target market is crucial. Understanding the existing alternatives and competitive advantages helps businesses position their offerings effectively and differentiate themselves from competitors. A customer feedback survey can help you to understand what other products your customers are considering, and why they chose your product over the others. This information can be used to improve your product and marketing efforts.
Additional Questions to Ask Your Target Market to Define Their Needs
Here are some additional questions you can ask to get more information about your customers’ decision-making process:
- What were the most important factors in your decision to purchase our product?
- What features or benefits of our product were most appealing to you?
- What did you like least about our product?
- What would you change about our product?
- Would you recommend our product to others?
Once a target market is defined, businesses can develop tailored marketing strategies, create relevant messaging, design appropriate products or services, and select the most suitable distribution channels to reach and engage their intended audience. By focusing their efforts on a specific target market, businesses can optimize their resources and increase their chances of success by delivering offerings that align with the needs and preferences of their ideal customers.