Understanding Your Target Market

Adapted from the FAST TRACK Marketing & Advertising Package There are basically 3 different consumer markets in business. There are many more, but there are three main, distinctly different markets. They could be illustrated by many means, but I will use automobiles to illustrate. The three markets are: 1. The KIA Market. A KIA is a very low priced car. 2. The Saturn Market. A Saturn is a middle of the road, "value" purchase. 3. The Mercedes Market. And of course the Mercedes is the high end market.

Which Market Do You Serve?
Keep in mind that when I speak of these target markets that I am not talking about how much money they make, or what kind of house they live in. A big mistake that is made in marketing is targeting high end homes, assuming the have a Mercedes attitude. They may have 3 Mercedes in the driveway, but they may have a KIA attitude toward their carpet! Everyone has a different value system about different things. Some may value stereo equipment at a high level and another may be satisfied with a transistor radio. One may put lots of money into their yard and another may only cut the grass when they get a notice from the homeowner's association! So, we are trying to target people who have a value system that fits the service we want to provide.

Across America there are cleaners that wish they could find the clients that are willing to pay a high price for carpet cleaning. At the same time, there are high paying clients across the country looking for good carpet cleaners. If that has been your frustration, and you choose to target "Mercedes Clients", this segment will reveal how they buy, and how to find them. You may decide after the next couple of sessions that you want to remain in the Saturn Market. You need to decide which market you will target. All three of these markets are legitimate markets, and all of them can be profitable.

The 3 Markets
The KIA Market. The KIA Market is simple. It's all about price. Don't try to be in the KIA market in residential unless you are targeting apartment complexes and rental units. There is plenty of business in that market as well as the commercial market. You must learn how to be competitive and be profitable at the same time. No easy feat in this market. The Saturn Market. The Saturn Market is the biggest market in single family residential. However, it also has the most competition. The competition is savvy and has plenty of capital. The methodology in the Saturn Market is to do a lot of advertising, get lots of leads, turn a certain number of those leads into buying customers. Generally instead of generating pre-qualified, ready to buy clients, you will produce leads and have a strong sales process to close the leads. Most often Saturn companies will use price merchandising to drive these leads.

Millionaires Hunting for You - But they can't find you!
Even though a Saturn customer sounds like a price shopper, they really aren't. In fact, just have a conversation with a true blue Saturn customer. Ask them why not buy a KIA since they seem so concerned with price. They will respond by referring to resale value, warranties, etc. They are looking for the best value. The best value is sometimes referred to as the best deal. So, don't let them trick you, just learn that they are looking for the best value, not the lowest price. Keep in mind however, they are not going to pay a high price. They won't pay $50,000.00 for an automobile! Generally, the reason people shop in the middle market is because most Americans have to stretch their budgets as much as possible. They have a limited amount of discretionary income. In addition, there value system doesn't put carpet cleaning at the must have level. It remains in the discretionary category.

So, you are also competing against other events in their life. If something in their home needs to be fixed, carpet cleaning may get put on hold for another year. Summer vacation expense may delay it another year. This is why you show up to a 9 year old carpet that has never been cleaned. It is covered with Kool-Aid spots and they want you to get it perfect for $175.00! The way to make money in this market is to communicate value, understand that you are going to have to do more volume, create lots of leads, have personnel that can answer the telephone and get the closing ratios that you need. Create a pricing scenario that allows for plenty of up-selling. In other words, your pricing may not include 12 steps, red spot removal, filtration soil removal, etc. as it may in the Mercedes Market.

Here's where it gets very interesting: A Saturn customer uses practically every advertising medium known. She may go to the yellow pages, she may respond to a flyer or direct mail piece, she may search the internet, she may get a referral. Then, she will generally call 4-5 companies to gather more information to make her value decision. The more value for the price that you can demonstrate, the better you will do in this market. After you acquire the customer, you will need to continue to offer a better value than your competition to keep that customer. Next week: Learn how the Mercedes Client thinks and buys!
Sincerely,

Howard Partridge
Phenomenal Products, Inc.

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email: cawhp@msn.com
voice: 281-634-0404
web: http://www.phenomenalproducts.com

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