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Target marketing is one of corporate America's
most effective business strategies. The idea is to increase sales by first
identifying, and then targeting smaller, yet more profitable customer
groups within the total market.
In its purest definition, a target market is described as the majority
of people your business attracts, either by circumstance or design. As
our industry evolves in terms of technology, education and specialization,
many owners are also learning to "position" their businesses
to draw a specific type of customer.
In its purest definition, a target market is described as
the majority of people your business attracts, either by circumstance
or design. As our industry evolves in terms of technology, education and
specialization, many owners are also learning to "position"
their businesses to draw a specific type of customer.
Targeting Is A Verb, Not A Noun
A market segment is any identifiable group within a market universe. For
example, most national advertisers break down the consumer market by at
least four segments, including gender, age, income and family structure.
These demographics allow them to "target" their sales messages
primarily to those most apt to buy their products. If you were selling
designer jeans to young adults, you may sponsor a TV show like "Friends."
Those selling toys and games will dominate Saturday morning cartoons.
In the aftermarket, a segment could be as simple as your customer list
and as complex as carving out a niche of classic car buffs. In either
case, the goal is to take advantage of a specific sales opportunity.
As a rule, most aftermarket businesses accept the general population as
their market; that is, anyone who owns a vehicle is a prospect. However,
some foresighted entrepreneurs recognize the profit potential of attracting
only certain types of motorists and vehicles. Still others only use target
marketing as an adjunct to their normal business.
Whatever the goal, successful target marketers know the first step is
to take a long, hard look at their business before seeking the perfect
prospect. What services or skills does your shop have (or can develop)
that will meet the needs of a special group of motorists? Perhaps you
recently hired a technician with specialized training or your new frame
rack is ideal for certain types of vehicles. Once you have a sense for
who you are, positioning your business will come as natural as linking
kids and McDonald's.
Next, understand the type of business most profitable for you. This can
be defined by average repair order size, vehicle type or customer preferences.
If you don't mind filling your bays with lower profit oil changes, you
may want to target quick lube customers. Or, if you would rather deal
with the kind of customer who cares more about quality than price, you
may seek more affluent prospects.
Finally, look for new, more specialized markets to conquer. The aftermarket
is actually a composite of many different groups, each with unique needs
and opportunities. Once you are confident that your business can indeed
meet those needs profitably, the rest is a simple matter of going after
the business.
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