The Target Market Strategy is a very important document which can present some definite challenges to successfully develop and implement. This article will focus on the target market strategy plan: what it should include, how it should be approached, how it should be implemented, and the benefits to your small business of having this strategy document developed.
I will share my experiences in developing this specific strategic document for companies I have worked with in the past. I will share the general guidelines for the structure of the document, and how to avoid certain pitfalls when determining this strategy for your respective business.
The first component of the process of writing the target market strategy plan is to determine who the target markets for your respective product or product lines are in the marketplace.
A good rule of thumb for choosing the target market is if the product(s) you provide are needed for the essential functions of an industry. Those markets are a good starting point.
In my experience, the other mitigating factor in determining the target markets for your product is if they address a regulatory issue in the marketplace which exists in a specific industry or group of industries.
I have worked in a variety of industries in my career, and I have found this criterion to be true, if the government puts forth some type of regulation; it immediately creates a market for other products that provide solutions to the regulatory action.
In addition, this type of target marketing is very smart because the government regulation eliminates the question, “is there a market for the product?” because your customers will need the product in order to be compliant with the regulation.
Another important factor in determining your target markets strategy is whether you or your colleagues have strong network of relationships from a previous job or through your work with a particular industry in the past. If you have some networked contacts in a market leading company, it will stand to reason that your small business would have a good chance at presenting your products or services there.
A successful sale of your product to a market leader then opens the door for “me too” sales to other companies in that same industry. So not only should the market leading company be a target, the whole market should be targeted by your company since so many industries follow the leader.
The target markets strategy plan document also provides an essential function to a small business: it clearly sets a division of both labor and resources. Each target market should be assigned to specific personnel and also have an established amount of resources given the probability of successful sales to that specific market.
The target markets strategy plan should be reviewed and revised periodically based on the life cycle of your business. It can be amended and adapted as your business changes over time to include new or different markets.
The target market strategy plan should also comply with your overall marketing plan and should work in concert with the overall growth strategy of your business. The commitment of set amounts of dollars per product line for use in marketing for target markets should be included in your overall marketing plan for your business.
This portion of your marketing plan should be included in your target market strategy plan. This method allows for less ambiguity when determining the allocation of resources to each respective target market.
The target market strategy plan is very important in a small business setting because it sets the framework for allocating resources in ways that should maximize profit returns. I hope that this article will help in your respective small business to grow and to meet your sales and marketing goals.