Jake turned his attention to the sphere hovering before them and Jack followed suit. Words and arrows appeared to spin out of the center of the sphere and then slow, finally taking rest at points around the circle.
At the top were the words ‘Know Your Market’. A series of arrows led clockwise around the chart, leading to the next step, ‘Budget’. After ‘Budget’ came ‘Strategy’, ‘Branding & Promotion’ and ‘Wow Factor’, followed by ‘Track & Measure’ and finally ‘Review & Make Informed Decisions’. After this, another arrow made the connection ack to the first step in the cycle.
“Let’s talk about this for a bit.” Jake started up again. “Step one is called ‘Know Your Market’. This is all about finding out who the most likely candidates are to purchase what you have to offer.
“This is commonly referred to as your ‘target demographic’ or ‘target market’. Demographics refer to the statistics of a population in a given location; particularly in reference to average age, income, gender, education, or any other criteria that can be identified that would be advantageous to know.
“One key to this principle is understanding that you cannot be all things to all people. It is so easy, and so common to find, new business people working their hearts out trying to please the un-pleaseable, or just trying to do way too much. Essentially, budding entrepreneurs spend a lot of time burning themselves out for the wrong customers.
“To bring it down home for you, Jack; I am going to assume your target market is not going to be vegetarians. There is nothing wrong with being a vegetarian, but vegetarians are probably not going to want a juicy beef patty in their burger. You may offer salads and veggie burgers on your menu for variety, and so you won’t have to turn these folks away; but I think it is safe to say that market will never be your primary focus.
“As with everything, it is best to strive to find a balance. If you narrow the criteria for your market, you will have better opportunity within a more narrow market than one that is too broad. But if your market is too narrow, you may not have the customer base to support you. So you must choose wisely the crowd that you want to cater to.”
“Almost always, there is a primary target market, as well as a secondary target market or two. Some you may know of up front, and some you may discover along the way. Stay openminded, and your business will be able to adapt and serve these additionally lucrative revenue streams.”
What Exactly is a Market?
A ‘market’ is made up of people. Real people who have wants and needs, perceptions, fears, and preconceived notions. Notions that are not always logical...and that can be scary. When discovering our market, we need to ask some questions about these people.
1) Who are they?
2) What to they want and how do they think?
3) Where do we find them?
When you rely on your ‘gut’ and ‘intuition’ like most business people do, you are leaving yourself open to get blindsided by all the things your gut didn’t tell you. One of the things we need is accurate information. Information provides knowledge, and as we all know, knowledge is power. But information is just information if it is not interpreted correctly, and if it doesn’t lead us to discovery on a deeper level.
...continued in the FREE COURSE, POD B-1 : The Marketing Cycle Explained
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