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It might be challenging for companies to identify their target market and competitors when they provide B2B services or technology products and marketers know that if the target is unclear, the product or service offered as a solution will be a complete mismatch! Therefore, it is critical to take into account factors such as an account’s revenue, company size, geography, and service or product need when building out your target market filters.
Target marketing is quite efficient when you need to generate leads for your B2B company. Pay-per-click advertising that targets clients based on their online search behaviorh as an average success rate of 3.88 percent in 2012. But to really penetrate the market and attract buyers, you cannot only rely on search advertising.
B2B target marketing techniques help businesses discover current and latent opportunities. It also helps marketers understand customer challenges, and identify probable direct competitors, and potential obstacles to winning business. Additionally, B2B target market analysis enables a company to devise effective personalized plans and ensure the successful execution of the plan within a stipulated timeframe.
Many businesses have survived because they kept a close watch on market trends and tracked their potential target market’s needs, challenges, and buying behaviors.
This blog discusses how to identify your target market so that you can plan your sales and marketing initiatives with more accuracy.
Market sizing is a tool that businesses and organizations can use to calculate the potential profit from a new venture, product, or service. These elements may affect determining whether to invest in including a company in your target market. It assists companies to establish reasonable revenue targets and deciding which markets are worthwhile investing their time and money in.
It is evident that the companies such as Salesforce and Microsoft have an integrated process of determining their target market and product channel based on geographic,behavioral, firmographic, demographic, and product usage segmentation.
Let's take a closer look at the six B2B target audiences, that help in identifying the target market.
The classification of business-to-business customers based on common company or organizational traits is known as firmographic segmentation. It's critical to consider the size and scalability of the intended B2B market.
There are some situations when "bigger is better" is not necessarily true. While identifying your target market, marketers must involve data distillation which flows through aspects like employee size, and the number of locations, and target department size.
Through this process, the target audience may narrow, which is important as it helps you decide which accounts best represent potential buyers for your products and services.
If your solution is an employee recruitment platform, your target is pretty apparent. But what about those solutions and products that don’t fall squarely into a category?
Application of Company Size to Target Market
If your target clients are too small, they may not have the budget to invest in your solutions. Inversely if the client is an enterprise and the product is not scalable to their needs they likely will not be a good fit. With the target market identification process the marketers automatically develop a buyer-seller relationship and could shortlist those companies that are the more likely to opt for their B2B services.
There are many different types of geographic segmentation categorized broadly into Continent, Country, State, and City. Why would you sell sand in the Sahara desert and snow in Antarctica? Hence, geographic segmentation is critical. If you are not segmenting by geography, you end upbuilding your marketing and sales strategies assuming that everyone globally behaves in a similar way. When you identify your geographic segments, you then need to conduct research on their preferred communication channels or what types of content they prefer to consume. Targeted buyers in Belfast may prefer communication via email while buyers in the United States may prefer LinkedIn Inmail. The same preference differentiations could be found in everything from the length of your message to the words you use.
Additionally, location identification is also crucial to identify if your solution, or those that it integrates with, are available in all markets or are widely used in all markets. Taking this first step to identifying your geographic segments will not only increase efficiency when creating strategies to penetrate accounts, but it will also help you to avoid approaching buyers in markets that you cannot reasonably sell into.
It is important to make sure that you are marketing and selling to companies that are in a financial position to purchase from you. If your products or solutions require long-term investments of a larger monetary size, it would be wise to exclude companies that do not generate the amounts of revenue that indicated they could afford to purchase from you.
When looking to identify what companies to include in your target marketing based on revenue size, it is also important to look at the long-term trends within their markets. Is there a healthy forecast for their industry? Have they recently experienced layoffs? Did the company recently successfully complete a round of funding? All of these factors should be included when building your target market and the companies you wish to include.
The term "behavioral segmentation" refers to a marketing technique where clients are divided into groups based on how they engage with a given industry or website while making an online purchase.
Customer loyalty is a notable instance of behavioral segmentation. As a brand, one shouldn't ignore the clients who continue to purchase and act as advocates for the company and its products and solutions. A common strategy used by marketers to increase customer loyalty is to implement a rewards program.
Customer and brand loyalty are not the only segments that should be considered. When identifying your target market, you will need to pay close attention to the needs your solution fill. Most buyers expect a business to understand their unique needs and challenges and for all communication to reflect that. Build out the use cases for your solution and the needs that it solves. You will find that your outgoing marketing and sales messages will have a higher engagement.
Product segmentation is the process by which a business transforms one product into multiple other goods to appeal to various customer demographics or target particular markets. The marketing plan is merely modified by market segmentation to get the same results.
This is the justification behind companies like Zoom's sales strategy. Zoom customizes its services to the client's demands. To meet the needs of everyone, the product is divided into variants. Zoom Meeting, Zoom Webinar, and Zoom Room are examples of variations from Zoom. Zoom Meeting is a good alternative for internal meetings, while the other two are suitable for public speaking and training.
Add(+) up all the possible clients who would be a suitable fit for your company, then multiply that number by the typical yearly revenue of these clients in your market to determine your serviceable addressable market.
TAM, SAM, and SOM are frequently cited by companies while conducting their market analyses. Investors might use it to evaluate an investment opportunity.
TAM: Total Addressable Market is a measure of revenue potential with 100% market share,i.e., in the absence of competition.
SAM: Serviceable Available Market is the fraction of the TAM that can be serviced by a company's goods and services. The SAM is the target market (TAM) for the products and services that are geographically accessible.
SOM: Serviceable Obtainable Market denotes the possibility for immediate sales, SOM/SAM the goal market share, and TAM the potential for large-scale sales.
The TAM can be determined in three different ways:
· employing reports and industry research from the top down,
· leveraging data from early selling efforts from the bottom up, and
· value theory is based on the assumption that customers will be willing to pay.
All of these factors are significant when evaluating an investment opportunity, but getting the most precise numbers should take priority over attaining the highest numbers.
Contemporary B2B marketing involves identifying a target group to generate personalized marketing campaigns that are specific to prospects' needs. To save yourself the time and resources required to blindly attach the market with one marketing or sales message, the work of identifying your true target market is imperative.
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Contemporary B2B marketing involves identifying a target group to generate personalized marketing campaigns that are specific to prospects' needs. To save yourself the time and resources required to blindly attach the market with one marketing or sales message, the work of identifying your true target market is imperative.
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