How to Use Target Marketing to Grow a New Small Business

As the founder of a new small business, you are most likely looking for a cost-effective manner of marketing. Therefore, it is in your best interest to direct your efforts to your target market.

Assuming you have done your homework and researched your target market, you first need to consider

how you will divide up your marketing list. Are you looking to reach a specific geographic area? Are you looking for customers in a certain age or income bracket that you think are your prime audience? Segment your target market so that you reach the most likely potential customers and do not overlap in your efforts.

Once you have narrowed down your audience, devise a means of reaching them by presenting something of special interest to them. Often, new businesses use the fact that they are brand new to lure their target audience. People like being in on the ground floor of something new, especially if you are catering to their specific tastes.

Lure them to your location or Web site with an offer of something that they would appreciate, such as discounts or small giveaways. Foodies, for example, might stop by for free samples at your new gourmet shop. Videogamers will drop in for free downloads, software, or books and magazines that are geared toward gamers. The key is to know as much as you can about your target market and present them with some new information, new products, new services, or new means of meeting their needs.

Once you have piqued their interest, try to establish a means of communication with your target group through newsletters, email, or mailings. As your core target audience becomes satisfied customers, they will help you build customers through viral marketing.

You can help them to help you by offering incentives, such as buy-one-get-one-free offers, discounts for referrals, and forward-to-a-friend links in newsletters and on your Web site. If you can market an item that requires more than one person to use effectively, such as a two-for-the-price-of-one gym membership, you'll draw new customers by virtue of the fact that they need someone else to use the product or service.

Build outward from a targeted group of steady customers and keep marketing to your loyal customers as your business grows.