Pub. 9 2019-2020 Issue 6

8 O V E R A C E N T U R Y : B U I L D I N G B E T T E R B A N K S — H E L P I N G C O L O R A D A N S R E A L I Z E D R E A M S www.coloradobankers.org FEATURE ARTICLE Considerations for Successfully Defining Your Target Market BY JULIA A. GUTIERREZ, COMPLIANCE ALLIANCE W atching the Super Bowl is as much about the commercials as it is about the game. If you stop and think about it, all the commercials are geared to a target audience. Simply put, target marketing is aiming your product or service towards a specific group of potential consumers. It involves concentrating your marketing efforts on a group of consumers who are most likely to buy and use your product. It can be the key to success for a business because marketing to the right group has the potential to attract new business and increase sales. Most successful business owners would agree that target marketing is one of the first steps in a good business plan and the most effective way to optimize your resources. As simple as the concept of target marketingmay be, there are a number of challenges that coincide with the notion. A great deal of brainstorming and planning are essential steps in the process to determine who should be included in this target group and what products or services would be most beneficial. You wouldn’t dive into a body of water without having some idea of what you’re jumping into. Most importantly, you need to assess the depth, threats or elements that could possibly get in the way of a successful dive. Target marketing is no different. If you are going to dive into a very specific market, there are several factors to consider. So, let’s talk about how this applies to financial institutions. In a perfect world, we could offer a “one size fits all” financial product and be entirely successful, but unfortunately, it’s not that easy. A range of factors should be considered to ensure you are effectively and efficiently reaching a targeted group of individuals who will benefit from the products or services being offered, increasing sales and business. Before you can clearly define your target audience, you should, at a minimum, consider the following factors. Identity and Analyze What type of product or service are you planning to market? Determine the features or characteristics you plan to incorporate into your financial product and then outline the benefits that the product may provide. Identify your potential customer base. Analyze your current customers and the products and services they are utilizing and think about whether other potential customers may also utilize these financial products or services. Often there is a correlation between specific products and the individuals using them. Therefore, evaluating the common interests and characteristics of your existing customer base may be beneficial to broaden that customer base. Identify the features and benefits of the products or services you are planning to offer. Determine how your product or service, based on its highlights, can improve the consumers’ life, whether that be free ATM costs or low-interest lines of equity.