Let’s pretend your company makes light bulbs. Everybody needs light bulbs, right? So, that would mean that your company’s target is everybody? Well, maybe not.
The temptation to market to a broad audience, rather than a narrow one, is understandable. More potential buyers = more potential sales. In this economy, we’ll take sales where we can get them. However, when it comes to allocating resources to market products and services, focus is key.
Let’s look a little more closely at your company and products. You are more eco-friendly than any other light bulb company, and your bulbs last longer than the competition. Those are some pretty powerful differentiators.
Match your differentiators to your target
We find that most companies are pretty good at identifying their differentiating factors. In fact, those differentiators are often what drive the development of a new product or service. However, we also find that sometimes those differentiators aren’t considered as much as they could be when defining the target market.
So, your bulbs are better, but also more expensive. But that’s ok, because everybody wants higher quality and eco-friendly, right? Yes and no. Everybody may want those things, but not everybody is willing to pay a premium to have them. For some, cheaper bulbs are fine, even if they don’t last as long and may not be as environmentally-sound. So who is your target?
You could, in fact, market to everybody. And, within that group of everybody, there are people who care that your company is eco-friendly, and that your bulbs are higher quality. And, most importantly, there are people who are willing to pay a little more for those traits. However, also within that group of everybody is a segment that just wants a cheap bulb. Not exactly a segment where you are going to get the most bang for your marketing buck.
Focus on the target that cares
So what do you do? Focus on the target that cares about your differentiating factors. Learn as much as you can about them, and build a strategy to target them. Sure, if one of those “others” decides to buy the occasional bulb, you aren’t going to tell them they can’t. But you shouldn’t invest another penny marketing to them.
Understanding your competitive advantage is half the battle. The other half is finding the audience that cares enough about your competitive advantage to want to buy your product.
Take a look at your target definition. Is it narrow enough? Does it really define the audience that is most likely to buy your product or service? If so, good for you. Your company can be efficient and effective marketing to that target.
If your target is not clearly defined, if it includes a large segment that may not care about your differentiators, or if it starts with the words “Everybody who…, “ it may be time to focus. You built your company to be different – and better – than your competition. Now make sure you’re telling that story to the right people.
Who Is Your Target?
Let’s pretend your company makes light bulbs. Everybody needs light bulbs, right? So, that would mean that your company’s target is everybody? Well, maybe not.
The temptation to market to a broad audience, rather than a narrow one, is understandable. More potential buyers = more potential sales. In this economy, we’ll take sales where we can get them. However, when it comes to allocating resources to market products and services, focus is key.
Let’s look a little more closely at your company and products. You are more eco-friendly than any other light bulb company, and your bulbs last longer than the competition. Those are some pretty powerful differentiators.
Match your differentiators to your target
We find that most companies are pretty good at identifying their differentiating factors. In fact, those differentiators are often what drive the development of a new product or service. However, we also find that sometimes those differentiators aren’t considered as much as they could be when defining the target market.
So, your bulbs are better, but also more expensive. But that’s ok, because everybody wants higher quality and eco-friendly, right? Yes and no. Everybody may want those things, but not everybody is willing to pay a premium to have them. For some, cheaper bulbs are fine, even if they don’t last as long and may not be as environmentally-sound. So who is your target?
You could, in fact, market to everybody. And, within that group of everybody, there are people who care that your company is eco-friendly, and that your bulbs are higher quality. And, most importantly, there are people who are willing to pay a little more for those traits. However, also within that group of everybody is a segment that just wants a cheap bulb. Not exactly a segment where you are going to get the most bang for your marketing buck.
Focus on the target that cares
So what do you do? Focus on the target that cares about your differentiating factors. Learn as much as you can about them, and build a strategy to target them. Sure, if one of those “others” decides to buy the occasional bulb, you aren’t going to tell them they can’t. But you shouldn’t invest another penny marketing to them.
Understanding your competitive advantage is half the battle. The other half is finding the audience that cares enough about your competitive advantage to want to buy your product.
Take a look at your target definition. Is it narrow enough? Does it really define the audience that is most likely to buy your product or service? If so, good for you. Your company can be efficient and effective marketing to that target.
If your target is not clearly defined, if it includes a large segment that may not care about your differentiators, or if it starts with the words “Everybody who…, “ it may be time to focus. You built your company to be different – and better – than your competition. Now make sure you’re telling that story to the right people.