Before you begin your marketing plan, there is a key part of developing the marketing plan – identifying specifically who a company wants to reach. Even though a business has a wonderful product, if it doesn’t promote to the right audience, it will fail at marketing. Market segmentation lets companies break down a larger market into several sub-markets using characteristics including demographics, geographic area, interests, behaviors, and needs. Then, by using research tools, marketers can determine which group fits best as the target market.
To define the target market, two very effective research tools are available for use: Census Business Builder and Google Trends. Both provide unique information to assist marketers in learning more about potential customers and improve decision-making as a marketer develops an effective marketing strategy.
Census Business Builder
Census Business Builder, created by the United States Census Bureau, is particularly good for gathering knowledge regarding the demographic and economic aspects of a potential market. This tool provides marketers with direct access to demographic, socio-economic, and business data to help them research possible customers in addition to examining markets. According to the Census Bureau, this tool can be utilized to assess various elements such as population, income, age, nearby businesses, etc., within a specific geographic area.
Knowledge of the above-mentioned elements can significantly aid in defining a target market. For instance, a company selling premium outdoor equipment could review geographic areas that have a higher level of average household income and/or large numbers of potential customers that match the ideal age range of their targeted customer base. In addition, a company can utilize the Census Business Builder to evaluate numerous geographic areas prior to introducing a brand-new product. As opposed to simply guessing who the potential customer may be, the Census Business Builder enables marketers to rely upon actual demographic and economic data in order to validate decisions.
Google Trends
An additional beneficial tool is Google Trends. Google Trends offers marketers an opportunity to analyze what individuals are searching for and compare interest in numerous search terms. Therefore, a marketer utilizing the Google Trends tool can obtain insight into fluctuating consumer interest and observe differences in search patterns relative to geographic locations or time periods.
Additional layers of research can be added with the use of Google Trends since demographics alone cannot accurately reflect what consumers are looking for. An illustration of this is if a company is creating a new type of ski product (i.e., heated ski boots), they can evaluate searches associated with search terms such as “heated ski boots,” “ski boot liners,” “skis,” and other skiing-related terms. With respect to geographic regions and/or seasonal periods, the company can use data obtained from Google Trends to help decide where and when to concentrate marketing efforts.
Combining Research in Developing the Marketing Plan
The most efficient method of achieving this goal would be to gather all of the necessary information from each of the aforementioned research tools. Census Business Builder can help address who and where the potential customers exist, while Google Trends can provide insights into what consumers are currently researching and searching for. Overall, both tools will enable marketers to acquire an even clearer understanding of their intended audience.
Research is essential in determining the effectiveness of other components of a marketing plan. Once a company knows its intended customer base, it can make informed decisions concerning price levels, channel(s) of communication, message types, product attributes, and distribution methods. To illustrate, a younger customer base that frequently performs internet-based product searches may be contacted via social networking sites and/or internet advertising. Conversely, geographical data can help determine which region(s) should receive the majority of a company’s advertising budget.
In conclusion, market segmentation must be based on research and not assumptions. The Census Business Builder and Google Trends offer opportunities for marketers to utilize factual information regarding consumers’ demographics, search patterns, and interests to establish strong market segments. By gaining knowledge of who their customers are, where they reside, and what they are interested in, marketers can develop a more focused marketing plan and maximize the utilization of their resources.
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