You’ve created a product or brand and you’re ready to start selling just in time for the holiday season. So who do you target?
This is a valid question and an especially important one for start up businesses. More often than not the answer won’t just throw itself at you; you’re going to have to find it. The best way to find your answer is by analyzing demographics.
While a product could encompass both men and women, often one gender may present a larger share of your company’s target market. Where do you send that women’s clothing line discount? Knowing how many women are in a household/area will give you that answer. Study carefully; statistics might prove that you should even be targeting a side product for men.
Salary or income level is an important segmentation to understand before introducing a product or initiating a sale. Targeting areas that are more likely to want and afford your product will increase responses rate and drop the excess spending caused by mailing broader targeted group. A great example of this the affordable lines of clothing that Issac Mizarhi and Zac Posen created and sold at target, to reach customers who cannot afford their high end line.
Let’s face it, you’re not going to be sending out mail ads for the hottest toy since Furby in Sarasota, Florida…or at least not an ad meant for children). Targeting ages means targeting the groups that are most likely to be interested in the type of product you sell. Knowing your surrounding geography according to age, can make all the difference in customer interests and level of response.
You might discover that married individuals are willing to pay more for an item than singles would. A shared income often means that married customers will have more money to spend than a single one. You can be sure that jewelry stores know exactly where to find these demographics- every day is some couple’s anniversary and there are some pretty good odds that they’re buying each other something flashy.
How to utilize the power of demographics
Sure demographic data is valuable information, but how do you make shed some clarity on all these numbers? By putting them on a map! When you combine valuable demographic data with accurate geography, the product is a powerful planning visual that will allow you to make educated business decisions, decrease costs, increase efficiency and thus overall ROI.