Continuing a week of demography talk.
There seems to be confusion in the difference between a demographic descriptor and a target demo.
Try this experiment and take notes of the results!
Ask any 10 business leaders to define the market for their product or service. There’s no trick. Just ask, “Who is your target market?”
It doesn’t require a crystal ball to predict the answers.
Target market descriptions are almost given as “age and gender.”
The broadest and most popular demo for advertising agency types is adults 25-54.
Is a target half of the United States population? If I shoot an arrow into a densely populated forest, I suppose I’ll probably hit what I see, if I just define it as the forest. If I select a tree and define the tree as my target, I’ll need to be a better shot!
When we simply observe customers who shop with us, we can quickly become acclimated to current customers as a definition of the market we are trying to reach or serve. This seems backwards.
It’s not difficult to pick a population segment but it is very challenging to identify the OPTIMUM audience. Bigger isn’t better, better is better.
A better target:
* Reachable--we can isolate a medium to communicate with the target. We send a message and our prospect receives it.
* Qualified–the target has the desire and ability to pay
Narrow paths to profit seem to have fewer land mines.