Day 5: Market your Business – Hone in on your Target Market
“Business has only two basic functions – marketing and innovation.”
Party poopers are the worst. Some of your friends are better party guests than others.
When planning your party, only invite your best friends, the people who are fun to be around, and those who are most likely to buy you a present. Start with a list of all your friends and narrow it down to the ones who fit those descriptions.
You need to do the same with your business.
Today I’ll show you how to find the best customers and how build a brand that will get them to do your marketing for you. Avoid the business poopers.
Select a Target Market
“I use my age as a marketing advantage. I can target younger people… I say, ‘If I’m 18 years old, you could be doing the same thing no matter how old you are.’”
Who will give you the most bang for your marketing buck?
Ask yourself these questions
- Whose problem can your product or service solve?
Start by brainstorming a list of all the organizations or people that your business can help.
- Who is most likely to purchase this product or service in the largest quantities?
From that list, who would be your most profitable customers? And within those organizations, who makes the buying decisions? A small group of very profitable customers is better than a large group of barely profitable customers.
- How far can you reach?
If you’re selling a product, you can sell it and ship it to anyone in the world. But if you’re providing a service (that’s not digital), you’re geographically limited. Either way, it’s best to start local and expand later as you prove the validity of your business.
Emil Motycka started mowing residential lawns when he was nine years old. By the time he got to high school, he expanded to commercial properties. He quickly realized that he could make $60/hour in the residential market and only $45/hour in the commercial. So now he markets exclusively towards residential homeowners.
Describe your target market
You need to be able to describe your target market in one sentence. In selecting your target market, the more specific, the better.
What’s their gender, age, location, hobbies, education-level, family status? What do they eat for lunch? What do they watch on TV? Who are their friends? How do they position their toilet paper?
Emil’s target market is middle-to-upper-class, senior citizen homeowners in Northern Colorado because they are willing to pay and less capable of mowing their lawns and doing the other tasks that Emil’s service provides (e.g. aeration, sprinkler installation and repair, landscaping, fall clean-up, sprinkler blowouts, snow removal, etc.).
The more you know about your target market, the more ways you’ll find to reach them. If you know that they have BINGO nights on Fridays, you can become a volunteer there.
Narrow that Down to a Niche
“You could say that the giant is Facebook and Twitter. Being a social network in a Facebook and Twitter world isn’t easy. You have to really find your niche and use it. That’s the giant’s Achilles’ heel.”
Your target market should be no larger than 100 people. Do that by choosing a specific niche. The smaller your niche, the easier it will be to become the best.
People hire the best at what they do.
Start with broad target market
Go back to your one-sentence description of your target market. Use it as a checklist/roadmap to find potential customers.
When Catherine Cook launched myYearbook she wanted to attract high school students. Marketing to all 19 million high school students in America is impossible. So Catherine started with getting all of her friends at school to sign up. Then she scaled it. Now they have 22 million members.
Consider people in your network
People who know you will be more open to hearing about your business.
Take your broad target market and think of people in your network who fit that description. Approach these people, tell them what you’re doing, and get their reaction. You’ll definitely get feedback and maybe get a customer. It’s a two-for!
Lindsay Manseau has a freelance photography service that specializes in wedding photography. As part of her marketing strategy, she constantly attends networking events with other young adults. Every person she meets is a potential customer. Networking is her primary method of marketing because that’s how the photo biz works.
Find other people who fit that description
Once you’ve exhausted your network, start finding other people who fit within your target market. This is called generating leads. Ideally, you want to generate leads and have someone within your network to be able to make the introduction to those people.
When we were recruiting our interviewees, we started with a list of young entrepreneurs (leads). Michael Dunlop was one of our first interviewees. Everyone in this niche knows Michael. We built our credibility with his name in almost every email we sent out to other young entrepreneurs. Michael also introduced us to Stanley Tang and Juliette Brindak.
Cold-calling is much easier when you have a name to drop at the beginning of the conversation. For instance, when someone receives a random phone call, they’ll want to know how you got their number. If you have a mutual acquaintance, they’ll be more likely to want to hear what you have to say.
Branding Based on Appeal
“You’re building a brand – and when you have a brand, people just talk about you. That is what you really want.”
Valued at $70.5 Billion, Coca-Cola is the biggest brand in the world. IBM is number two ($64.7 billion). And Microsoft slides into third ($60.9 billion).
Brands are intangible but they’re one of the most valuable things you can build for your business.
Your Brand’s Message
Start with your message. Based on what your target market likes, what do you want your brand to convey? What do you want someone’s first thought to be when they see your logo? The answers to these questions will be the basis of your colors, logo, and tagline.
Catherine Cook wanted myYearbook to be viewed and described as a fun place to meet new people. Everything on her website contributes to representing that message and building that brand.
Psychology of Colors
Colors play a vital role in determining how someone perceives your brand. Here’s a list of colors and what they subconsciously represent to people:
- Hi – energy, increases heart rate, creates urgency; often seen in clearance sales.
- Hi – aggressive; creates a call to action: subscribe, buy, or sell.
- Hi – optimistic and youthful; often used to grab attention of window shoppers.
- Hi – associated with wealth; easiest color for the eyes to process; used to relax in stores.
- Hi – creates sensation of trust and security; often seen with banks and businesses.
- Hi – soothing and calming; often seen in beauty or anti-aging products.
- Hi – romantic and feminine; used to market products to women and young girls.
- Hi – powerful and sleek; used to market luxury products.
Courtesy of Kissmetrics Blog
Blue is the primary color that is used on myYearbook.com. This sets an inviting environment that builds trust with new visitors. The pink, yellow and purple all help to build a friendly and fun feel to their website.
It’s the face of your company. You’ll put your logo on business cards, marketing materials, websites, and, if it’s good enough, people will get it tattooed on their arm. There are three types of logos:
- Logotype/wordmark logos are your brand as a font.
Different types of font portray different meaning and appeal to different types of customers. Script or thin fonts imply formality and appeal to luxury-seekers. Thick fonts convey strength and power. Slanted fonts impart a sense of motion or forward-thinking.
- Iconic/symbolic logos are simply images that portray your brand.
When using an icon or symbol to represent your business, it needs to be particularly simple, recognizable, and memorable. You should be able to describe the shape in a few words, e.g., “swoosh”, “golden arches”, and “apple”.
- Combination marks use both text and an image (Recommended).
It’s the best of both worlds and what you should use. The image attracts visual people and gives people a name to remember you by.
Here are five basic principles that make a good logo:
- Keep it simple, sweetheart.
Simple is easily recognizable and incredibly memorable.
- Keep it appropriate to your brand and the message you want to build.
Once again, everything from the colors, to the fonts, to the shapes and the thickness of the type contribute to the brand you want to convey.
- Be creative.
You want people talking about you. People talk about things that are unique and creative. Your logo is an opportunity to be unique and creative. For instance, has anyone ever told you that there’s an arrow in the FedEx logo?
- Needs to be scalable.
So it can be seen on a skyscraper from a mile away but also placed on the corner of a small pamphlet.
- Needs to be recognizable in black and white.
Always printing in color is expensive. Eventually, your logo will appear in black and white. Make sure people can still recognize it when it does. Don’t rely on different colors to make it memorable.
At 22-years-old, Jacob Cass is one of the world’s premier logo designers. You bet he has a great logo. It’s drawn in and looks like a pencil, which is the first tool he uses to make a new design. Also, J.C.D. are the initials of his company, Just Creative Design. J.C. is also his personal initials. See his logo below:
Your tagline is a catchphrase that you will use to quickly describe your business (no more than 5 words) while capturing people’s curiosity. Like your logo, it’s important for it to be unique. More often than not, companies trademark their taglines so they’re the only business that can use those words in that order.
With 22 million members, myYearbook’s tagline is “Friends. Flirts. Fun.” That quickly sums up just about everything you can do on myYearbook.com.
Every company should have t-shirts. You can wear them on the job or give them away to your best customers. Heck, you might even be able to sell them to your customers.
Having t-shirts is one of the few ways you can sell your marketing materials. If you’re going to sell them, make sure you’re selling something people want to wear and be associated with. That’s why you need to build a brand that people like.
One of the first things Ben Weissenstein did when he decided to start his business is go to Walmart and buy two red polos as uniforms. Now, all of his staff wears blue polos with his logo embroided on them. This gives his business a very professional brand image that his customers want to share with their friends.
Building a solid, likable brand is the most important thing you can do for your business from a marketing perspective. With a good brand, people will come to you and you’ll never have to spend a dime on advertising. This will save you a lot of money.
Here’s what I want you to do. Once again, everything I ask you to do is important, but don’t leave this week without getting free business cards (just pay shipping).
- How to Pick your First Customers
- How to Get a Cheap or Professional Logo
- How to Get Free Business Cards
See you at the top,
Nick Tart & Nick Scheidies
P.S. This module is just one part of a ten step outline to business success. Use it to launch your product, service, internet business, or something nobody else has thought of yet. The next module will show you how to advertise to your customers – but the only way to get it is to subscribe to the guide. It’s an investment in your business and it’s absolutely free.
P.P.S. Since we’re giving you this course for free, we just ask that you “Like” it, “Tweet” it, and otherwise share it with everyone you know. Thanks!