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Jun

3

The beautiful thing about scenario analysis…

Michael CarabashI was practically in the yelling match with a (prospective) client and good friend about target marketing. I wanted to know, plain and simple, who his target market was. He gave me some fluff. I kept asking: “Please be specific”. He kept giving me general answers. “We’re targeting everyone. We’re targeting professionals and their families. But we also do niche targeting to students and seniors”. Geeze man! Could you be any more vague?!?

The purpose of my sharing this little story with you here and now is simple: to have a clear strategy on how to use your limited resources to target your market, you must first identify that target market with precision. I want to know, demographically speaking, as much as humanly possible about your ideal client. The best way I’ve found to make this determination is to come up with a number of scenarios whereby everyday individuals (and perhaps groups and organizations) would use your product(s) and/or service(s).

Take the following example. I sell candy. A small boy who lives in Toronto around a candy shop would buy candy from my store. That’s a scenario. A young man who wants to get his girlfriend some candy as a gift would buy candy too. That’s a scenario. A group of women looking to quench a craving would buy candy. So too would avid candy collectors looking for the latest craze. You see: there are lots of different people who would buy my product for different reasons. I have to figure out, by grouping these and other scenarios together, who my PRIMARY, SECONDARY, and even TERTIARY target markets are. Perhaps the small boy buys the most candy, so I should cater my store to him. Remember: 80% of your profits come from 20% of your customers. So make your strategy count!

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