BUSINESS
Marketing 101 Series: Part 2
How do you fine-tune your target market? by Trip Jobe, CEO, Rand Inc.
Is any lead a good lead? Unless you can and are willing to serve any lead that comes in the answer is usually no. “Spray and Pray” is filled with countless problems, including wasted money, wasted time, and confusion among your customers. If given a seemingly endless budget, we know there are firms out there that will spend it, but don’t expect to be happy when the budget runs out. Understanding your true target market is a critical component of a strong marketing strategy – very few companies have the resources (including sales, customer service, etc.) to serve everyone. The question becomes do you want to spend lots of time with leads that are only lukewarm and need many touches to get to a buying decision or would you prefer to put your time towards prospects who are in the market for your product or services? In this article, we will help you find your true target market.
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The Total Addressable Market
Your TAM (Total Addressable Market) is anyone who could potentially use your product or services. In the example shown on the next page, the fictional ATL Outdoor Kitchen Pros sound like they could serve anyone in the Atlanta Metro market, which is approximately six million people. The challenge is that this is an overreach due to the name ATL Outdoor Kitchen Pros. What can sometimes happen with businesses that approach digital marketing firms is they try to own a large metro market on the web. This is both costly and often brings in leads that are very weak and are just starting to “kick the tires.” Digital marketing firms, without clear direction, may then target Search Engine Marketing tactics (SEM) that pick up on Atlanta and Atlanta Kitchens — both of which could bring in many leads, but fewer qualified ones.
