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Business & Careers Article: 7 Steps to finding your most profitable target market

By: Emma Rhoades of Diva Promotions

When starting a business you can get so bogged down in getting all the necessary bits and pieces ready, that you forget about taking time to research just who, exactly, is going to buy your product/service? Utilise these 7 steps to uncover who your most profitable customer is and how to target them!

1. How many products or services do you have? Is it 1-2, or 30-40? Write them all down individually.

2. Write down who buys each product. It’s ok to overlap a few people here. Try to make it as detailed as possible. For example, mothers with children 0-2 yrs, men who like golf, etc, rather than mothers and men. The more detailed you can get it, the more profitable your advertising can be!

3. Work out your profit margin for each of your products. For example, how much would you make if someone bought your product. Again, the more detailed you can get, the better.

4. Take your top performing product and have a look at who buys this. You may have more than one type of person on that list. Choose one person to start with, and think about the type of person they are. Do they shop online, do they read magazines - if so - which ones?

5. Do lots of research!! Find these people and ask them! Ask them what type of magazines they read, ask if they prefer to shop online of offline etc. Don't try to skip this step, otherwise you will be flying blind in your advertising. These have now become one of your target markets. Do this for all of those who purchase your products.

6. Once you know more about them, you can start looking around for places to advertise. Don’t be tempted to go for the cheaper option - always make sure that it is getting directly in front of your target market

7. Start with one product at a time, and one customer type at a time. Always start with your most profitable product or service, and this will ensure you get a higher return on your advertising investment.

If you are just starting out in business, the above can still apply. Ensure you do lots of research and ask all types of people if they will buy your product! They can only say yes or no, and you will still work out who your target market is from this.

Emma Rhoades owns promotional business Diva Promotions. She aims to give women with their own business highly targeted, cost-effective promotional campaigns. Visit www.divapromotions.com.au today to view our current advertising and promotional opportunities. Emma can be contacted via the website or at admin@divapromotions.com.au

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