Updated: Apr 16, 2020
At Teach a Brand to Fish, we look at Target Markets for marketing from two perspectives.
The Macro View: Target Market
The Micro View: your Ideal Client Profile
What is a Target Market in marketing?
A Target Market is a flyover view of a wide audience that share a set of traits. Those traits, which define your target market are:
Job title: By function and seniority level. These are the decision-makers you’re selling to, for example, a CTO.
Business profile: An employee count from LinkedIn is really all you need here. A 0 to 10 employee firm has its team working in a vastly different way than a firm with 1000 employees. A CTO in one and a CTO in the other have immensely different worlds, views, priorities, challenges, and interests. We suggest focusing on the business profile that has the highest probability of becoming your client to achieve the set revenue targets.
Geography: Do you want prospects in the USA, UK, Ireland, all of Europe?
Sector: For example, the Financial Services Sector
Audience: If you want to make 10 sales, your Audience will, for example, consist of 200 CTOs from companies of 501-1,000 employees in the UK/Ireland Financial Services Sector.
How do I get a Target Market?
Using the specifications above, start building a database of high-value leads. The number of people in your Target Market audience is directly proportionate to your revenue targets.
X new clients at Y average transactional value = your total revenue
For example, if you want to generate €100,000 in new revenue over the next 12 months, this would be unpacked into the total number of clients, multiplied by the average transactional value of a business product/service for a particular target market.
So, €100,000 in revenue = 10 sales (new clients) @ €10k each
A good rule of thumb is that for every 20 ideal prospects you appear in front of, one will buy your product/service. So 10 sales mean getting in front of 200 ideal prospects over 16-consecutive weeks to generate 20 qualified sales leads, of which 10 will become sales. Each of these 200 prospects needs to receive 3 to 6 meaningful touchpoints over 16 weeks. So you don’t need to appear everywhere, you just need to be where our 200 prospects are.
The maths, formulas and calculations we use are from more than 2 decades of marketing experience in the SME space. It is clear – the more focused, hyper-relevant and targeted you get, the fewer resources required and the more viable ROI generated.
If you’re worried about the GDPR implication of creating a database of high value leads for SME, we cover that topic here.
You might have a few Target Markets that you would like to choose. In our experience, choosing just one and using 16-weeks to do the research and execute a hyper-relevant marketing campaign means marketing that works.
Choosing several Target Markets and trying to communicate to all of them the same way, means marketing that hemorrhages time, budget and resources with little to no return.