Choosing the most effective marketing spends for your business.
In our last post, we looked at how asking yourself a few simple questions can help you create a profile of what your ideal customer, or target audience, looks like.
In this post we’ll look at some examples of target audiences and how you can use them to determine what marketing spends might make sense for your business.
Example 1: High-end retail home accessories store in a suburban community
Geography—People who live within a ten to fifteen drive of the store.
Age—This will skew towards younger homeowners who are starting to make enough money to afford nicer things for their home but have not already acquired a lifetime’s worth of goods. A good age range would be 35 to 45 year olds.
Gender—Women tend to be more conscious of home décor than men so the audience may skew towards women.
Race—This will mostly likely mirror the racial diversity of the surrounding community.
Income—There will likely be a starting income where the store’s prices begin to become affordable. Depending on the income level of the community this will likely be around $75,000+. There may also be a ceiling of around $200,000 after which people may prefer to shop at ultra-luxury boutiques.
Target clients: 35 to 45 year old women with household income (HHI) between $75,000 and $200,000 living within 15 miles of the stores location.
Potential marketing spends:
This business needs to spend its marketing dollars on local advertising. While it’s always possible that someone who lives further away will be willing to make the drive, it makes sense that people who live in the immediate vicinity will be more likely to visit the store and become regular customers. Potential marketing spends need to be laser focused on the immediate surrounding area. Some ideas would include ads in local magazine, direct mail postcards sent to residents of the area, in-store events, donations to local schools and charities, highly targeted digital marketing.
Example 2: Health and fitness smartphone app
Geography—Not localized, but the app will likely do better in urban areas where health and fitness are prioritized. Given a limited budget, it might be good to start with a few key cities like Miami, San Diego and San Francisco.
Age—This will skew towards younger consumers who own smartphones and are used to using them to track their everyday activities. Younger singles may also be more likely than older married adults to be conscious of their fitness and want to look their best. A good age range is 20 to 35 year olds.
Gender—Both genders prioritize health and fitness so this will not be a decisive factor.
Race—Again, race will mirror the target areas more than it will be a deciding factor.
Income—The key factor on income is the ability to afford a high-end smart phone. A good starting point is the starting salary for an entry-level white-collar worker in the target cities, likely around $35,000. The ceiling is the point at which a potential client is more likely to higher a personal trainer or fitness coach than use an app to track this, probably around $125,000.
Target clients: 20 to 35 year old white-collar workers who own smartphones living in fitness conscious urban areas with household incomes (HHI) between $35,000 and $125,000.
Potential marketing spends:
Because this company is marketing to millennials who tend to eschew traditional marketing vehicles like radio and television, online spends may be the best way to reach them. Online radio, video ads, and targeted digital marketing will all be effective ways for this company to communicate the benefits of its app.
You can see how going through the exercise of identifying a target market will change how and where your company’s marketing budget is spent. This information allows you to determine the best way to reach the people who are most likely to value your product or service. This generates a higher response rate, which in turn yields more revenue from each dollar spent—and allows you to successfully grow your business to its full potential.
No matter who your potential client is, Wolfhaus Design can help you create and deliver a campaign that will speak directly to them about the value of your product or service. To learn more visit wolfhausdesign.com or get started with a free consultation.