Trying to promote your product or service to everyone can be costly and ineffective. Grouping or segmenting your potential customers based on certain characteristics will help to focus your marketing efforts.

Generally segmentation is based on factors such as: 

1. Geography
   • Where do they live?
   • Where do they work?
2. Demographics
   • Gender
   • Age
   • Level of education
   • Occupation
   • Income
3. Behaviour
   • What is the primary reason they would use your product or service?
   • What appeals to them about your particular brand?
   • What are their usage rates of your product or service?
   • Where do they typically source information about your type of product or service?
4. Lifestyle and values
   • What is their family situation?
   • What do they value in their lives?
   • What are their hobbies and interests?
   • Do they have children?
   • Do they have pets?

Your target market should have a need for your product or service and be willing to pay for your offer.

A USP is the unique reason your customers buy from you and not your competitors – it’s what makes your business stand out from the crowd. It is important to define what you do differently and be able to convey that to potential customers. Commonly, this reflects your special knowledge or skills.

Your USP may be having a new or unique offering or providing exceptional service. Start developing your USP by answering the following questions:

• What do you love most about your products and services?
• What special skills or knowledge do you have?
• What makes your customers come to you instead of your competitors?
• How do your customers benefit by purchasing your products or services?
• Which aspects do you generally highlight when you describe your business to strangers?

Every business, regardless of size, is likely to need a brand. A brand is more than a logo, colour or tagline. A well-articulated brand emotionally connects with your target customers and conveys who you are, what you stand for and what you can deliver.

While there are many available, consider your target audience when you are determining which to use.

Options include:

• a business website 
• social media
• blogging
• brochures and flyers
• networking events
• print advertising
• word of mouth
• cold calling
• letter drops.

Marketing goals will help you to define what you want to achieve through your marketing activities. Your goals should be SMART: specific, measurable, attainable, relevant and time-based.

You will also need to allocate a budget to your marketing activities. Your marketing budget will need to include elements such as:

• website development and maintenance
• search engine optimisation strategy
• design of branding
• printing of promotional material (business cards, brochures, signage, etc)
• advertising
• donations and sponsorships
• employing staff to undertake marketing activities.

It is important to regularly monitor and review your marketing activities to determine whether they are achieving the desired outcome, such as increased sales. Initially you should review your marketing plan every three months to ensure your activities are supporting your strategy. Once your business becomes more established review your plan when you introduce a new product or service, if a new competitor enters the market or if an issue arises that affects your industry.

Monitoring activities may include reviewing your sales figures on a regular basis (monthly) or monitoring customer activity during an advertising campaign. You can also access and review free analytic tools to determine the effectiveness of your social media or website campaigns.

Learn more about digital marketing.