Importance of Executing Target Market Segmentation for Small Businesses and Nonprofit Organizations

by Cameron Tupper

The biggest issue small businesses and nonprofits can face when attempting to market their products and services is having a genuine and specific idea of who they are seeking to reach and attract in their marketing efforts. Figuring this out can come across as a daunting task when you take into consideration the vast amounts of demographics that businesses now have access to through social media and other venues. However, depending upon your business and your niche it may be a lot easier to discern and in the long run, having this understanding can make your money spent on marketing generate much healthier returns for your business. Far too often, small businesses and nonprofits will fall into the trap of moving forward with a marketing venture without a clear understanding of who they are marketing to and will be too general and vague with the demographics they attempt to reach, this can lead to much smaller returns on their investments and a large amount of wasted resources.

One of the easiest ways to begin to understand who your business’s or nonprofit organization’s target market segmentation is to consider who your favorite or most consistent client is. Evaluate them based off their behavior, the products, and brands they interact with most, along with their social media usage if applicable. You should also consider this client’s demographic, this can range anywhere from their age, gender, income level, level of education, religion, nationality, and their social class. Your client’s geographical location should be featured in your evaluation of the client, including information on where they work, live, or spend large amounts of their free time as this can possibly provide insight into their interest with your product or service. Finally, you should consider your client’s psychographic tendencies or if they tend to be introverted or extroverted, their lifestyle, likes, dislikes and attitudes.

Once you have started to gain a general stance on your target market segmentation, it may be worthwhile to invest in gathering data on the groups you feel you should be marketing to, through third-party data compilers such as Data Axle, KlientBoost, or WebFx. It is important to ensure that the data you are looking to purchase through these companies, should you choose to, is current enough to be relevant and fresh for your business or nonprofit organization’s use.

Utilizing the information you have gathered thus far, along with gaining an understanding of the competitors you are facing in your market and what you need to do to compete with them, will give you a chance to see untapped potential groups along with groups that have already been reached and produced positive results. At this stage, this information should be used in your business strategy for you to recognize where the largest potential lies within certain audiences for your organization, along with the features you will want to highlight of your product or service that is going to pique the interest of each unique group of people you target in your marketing.