An Overview of Marketing

Your Target Customer
Explore Customer Groups
Prepared by
Ron Knowles
Algonquin College
& Jennifer Rouse Barbeau
Canadore College
Chapter Overview
Chapter 4 will:
 Help you begin collecting information to
understand, develop a profile of, and connect
with your target customer.
 Begin to formulate your market strategy.
Learning Opportunities
 Understand that your key to survival in
small business is the target customer.
 Recognize three kinds of customer
 Use primary and secondary research to
profile your target customer.
 Match your target customer with what
he or she reads, watches, and listens to.
Learning Opportunities
 Become more aware of and start being on
the look-out for potential partnerships,
alliances, and associations.
 Recognize the market and the target
customers who are about to surface.
 Research your prospective target
customers and refine your mission
 Visualize your business and target
What is Customer
Relationship Marketing?
A Key Trend:
Customer Relationship Marketing
The development of long-term, mutually beneficial and
cost-effective relationships with your customer.
Emphasizes a market pull strategy:
 Determine what your target customer (TC) wants.
 Profile your target customer.
 Adapt or create a product or service to satisfy this
want or need.
Emphasizes a one-to-one marketing strategy.
The Power of Profiling
Three types of customers:
1. Primary: The primary or target customer is most
likely to buy your product or service and could be a
heavy user.
2. Secondary: The secondary customer has a
possibility of buying your product or service but
needs convincing.
3. Invisible: The invisible customer is the one you
don’t anticipate but has a need for your product or
service. This customer appears after you open the
Two Types of
Customer Profiles
1. Business to Consumer (B2C) or
End-User Profile
If your TC is the consumer or end-user, your
customer profile will likely require demographics
or psychographics.
2. Business-to-Business (B2B) Profile
Many small businesses offer their services or
products, often on a contract basis, to other
These supply chain companies need a customer
profile that is based on business or companytype information.
Demographics &
Key personal
characteristics of a
group of people.
Process of segmenting
the population by
lifestyles & values.
These include:
 Age
 Sex
 Family Status
 Age of Children
 Education
 Residence
These may include:
 Where they eat & shop
 Sporting activities
 Entertainment activities
 How socially & physically
active they are
 Whether they travel for
business or fun
Psychographic Profiling
Chances are you will have to do
your own psychographic research.
Use Action Step 24 to get started:
 What is your VALS? Click on the SRI Consulting
Business Intelligence site.
 Profile your target customer using postal codes.
Link on to Generation 5.
 Do your own psychographic profiling. Invite a
few friends to a psychographic party.
Media Sources Can Help
Demographic & psychographic profiles are
available from media sources:
TV and radio stations
Media Sources Can Help
• Analyze media sources aimed at
different target markets.
• What does your target customer read,
listen to or watch?
• Action Step 25 will help you get started.
Conduct primary and “new eyes” research.
• Interview magazine buyers.
Do some secondary research.
• Write to advertising departments.
• Ask for media kits and reader profiles.
Business to Business
Business-to-business or supply chain firms can be
characterized as:
 Businesses whose target customers are other businesses.
 Businesses who do not deal directly with the end-user or
 Businesses whose major goal is to create partnerships,
ventures, alliances, or associations with their target customers.
A target customer profile would include:
Company Profile: e.g. size of business, type of business
End user Profile: e.g. end-user application, decision-maker
Industry Profile: e.g. trends, competing firms and barriers to entry.
Joint Ventures & Strategic Alliances:
10 Tips
1. Have a common purpose
2. Conduct research
3. Consider mutual benefits
4. Provide a structure
5. Consider potential advantages
6. Invest in human resources
7. Put it in writing
8. Stay in touch
9. Keep tabs
10.Exit stage left
B2B or B2C
B2B or B2C? Which one will it “B”?
Recall the experience of Adrienne
Armstrong at Arbour Environmental.
You can
benefit from
both worlds.
Field Interviewing
& Surveying
Test your TC profile,
developed from secondary
research, against reality.
Develop a questionnaire &
identify a survey location.
Ask questions of your
potential customers.
Get permission from the
location owner.
Bargaining tactic: share the
information you discover.
Recall the experience of
Julia Gonzales.
Recall the experience of
Elizabeth Wood.
Other Sources of
Primary Research
Mentoring: Locate a business owner who wants to help.
Experience: Work in a similar business and get all the
information you can.
Networking: Go out and talk to local businesses and
Brainstorming: Gather a group of friends, associates, or
family and brainstorm your TC.
Competitors: In some cases, researching your
competition may provide some good information about
your potential TC.
Business Vision
Visualize your new business and the
target customer.
A business vision is:
 A mental picture of your business, product or
service at some time in the future.
 A source of guidance and direction.
 A driving force for your persistence and
Business Plan
Building Block
Chapter 4 helps you prepare
Part B of your business plan:
The Market &
The Target Customer
Checklist for
Your Business Plan
 Profile your target market in terms of primary, secondary, and
invisible customers.
 What do the results of your primary research questionnaire tell
you about your target market?
 What information have you developed about your target
customer from your secondary research?
 What characteristics are unique or clearly definable about your
target customer?
 What is the best way to reach your target market?
My Virtual Model
My Virtual Model (MVM) is a successful company
headed up by Louise Guay and Jean-Francois St-Arnaud.
Answer the Chapter 4 case study questions to learn:
 How MVM takes advantage of relationship marketing, the
market pull approach and one-to-one marketing.
 The three types of MVM customers.
 MVM’s and Lands’ End target customer profile.
 What MVM’s business vision was and how Louise Guay
used primary research to help start the business.
 How MVM benefits from market trends and partnerships.
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