Target Marketing

Simply stated…Target Marketing is communicating with a specific group of consumers with similar characteristics, within a broader group of consumers who may need your products and services. Enter the keywords Target Market into any search engine e.g. Google or Yahoo. The results would be several pages on Target Marketing, Niche marketing and Affinity Marketing.

You Can’t be All Things To All People
Don’t let the so-called “Marketing Gurus” fool you. They have not cornered the market on Target Marketing. It seems they all converge to say the same thing… grow a financial services practices or any business for that matter by identifying and serving a particular customer group – your target market. You cannot be  “all things to all people”. The shotgun effect does not work…you need Beretta Sako 75 Deluxe Rifle. The key is finding common groups, analyzing their actions, and targeting your product and services to each group. The goal is to become a market specialist!

Effective Marketing Plan will address:

1. Where we are now. 
2. Where we will like to be e.g. who are the ideal clients and target audiences for the Financial Services practice.
3. How we will get there (tactical plan, action plan – with measurement components and budget)
4. Unique Value Proposition - UVP
5. Personal Sales or Practice Management Brochure

Set Your Marketing Goals
Financial Services Professionals need to set realistic and measurable goals for their practice. The goals should be set in 90-day increments and reviewed every 30 days for incremental progress. Also take a look at existing goals. Based on your research findings, you may need to modify some of your goals. Effective marketing plan will not contain activities or goals more than two years in advance.

Conduct A Marketing Review
Financial Services Professionals should conduct a marketing audit. The marketing review (audit) is a fundamental part of the marketing planning process. It should be conducted at the beginning of the marketing process as well as every 90 days. The marketing audit considers all best practices and processes in place to attract clients and gain referrals.

Conduct Market Research
The purpose of market research is to construct a realistic picture of your Financial Services practice, the community you practice in and your current position in that community.  Through this research, you can drive realistic assumptions on where practice focus will be in 3 to five years. This research will also indicate where you need to focus your efforts in terms of client building i.e. sources, professional associations and centers of influences. Conducting market research is often the most time-consuming step in this process. It is a very important step. Marketing research enables you to find out what your practice does best and what you need to work on, what the needs of your community are, who your practice should be targeting and how you should go about it.

Target Audiences…Examples:
Prudential @ www.prudential.com Careers in Sales | Target Marketing

AFFLUENT INDIVIDUALS	SMALL BUSINESS OWNERS	ETHNIC GROUPS
Social Clubs Yacht Clubs Investment Clubs Private Schools Track Clubs Sororities Airplane Owners Fraternities BMW Clubs Tennis Clubs Golf & Country Clubs Cultural Clubs	Ad Agencies Auto Dealers Cable Services Computer Programming Services Construction Companies Dental Laboratories Dry Cleaners Excavating Nursing Homes Print Shops Telephone communications Young President’s Organization	Vietnamese NAACP French Ex-Patriots African American Business Concern Brazilian American Society Arab League Japanese Business Embassy Workers Korean Churches Chinese Business Associations Hispanic Business Groups Polish League
FAMILIES	PRE/POST RETIREMENT	WOMEN
PTA Big Brother/Big Sister Parochial Schools Bowling Leagues Senior Social Clubs Senior Church Groups Community Centers Soccer League Boy Scout Councils Camp Fire Councils Girl Scout Councils Little League Clubs	AARP S.C.O.R.E Wally Byam Holiday Travel Military Organizations Retirement Centers Antique Automobile Clubs Travel Home Owners Lions Club Older Women’s Leagues VFW Groups American Legions	Professional Groups Women in Business Associations Registered Nurses Professional Secretaries Women’s Associations Paralegals (Many are men-may want to delete this example) YWCA Groups Women in Construction Junior Leagues Daughters of the American Revolutions
PROFESSIONALS	MIDDLE INCOME INDIVIDUALS	AFFLUENT OCCUPATIONS
Chiropractors Orthodontists Professors Dentists, Oral Surgeons Physiotherapists Occupational Therapists Lawyers Marine Captains Air Traffic Controllers Plastic Surgeons Certified Public Accounts Veterinarians	Workers In a Factory Union Groups Knights of Columbus Reporters Athletic Organizations Farmers Plumbers Construction Workers Religious Clubs and Groups Optimist Clubs Political Clubs Ski Clubs	Sales & Marketing Executives Comptrollers CEOs Professional Coaches Scientists Retail Executives Promoters Photographers Bankers Morticians Architects Sales Professionals

Analyze Your Market Research
We need to analyze the information initially collect. The goal is to come away with the basis for determining which marketing strategies make the most sens. This action helps us get the best results for your Financial Services Practice. This includes a SWOT Analysis. This sound frightful and intimidating but it is a very use tool. The acronym is used to describe your Financial Services Practice’s internal Strengths and Weaknesses and its external Opportunities and Threats.

Identify Your Target Audience
Target audiences are distinct groups or segments of Financial Services customers and clients. Defining your target audiences will help you promote the aspects of your business that are most relevant to each target group. Market research will help you identify your Financial Services Practice’s target market. Look closely at your own Financial Services Practice as well as your competitors. Ask yourself the following 12 questions:

1. Who is my competition in the market segment?
2. Is the market segment growing, maturing, declining?
3. Can I differentiate my practice from the competitors'? 
4. Can I focus on a target market that I can serve well than my competition?
5. Do I have an identifiable target population with similar interests and needs?
6. Is the market large enough to support my business?  Can I do well in this market?
7. Can I tailor my products, services, and business identity to address that market's particular needs?
8. What is my ability to support activity and needs in that market segment?
9. Is my target market currently underserved? 
10. Can I reach my potential customers in a cost-effective manner?
11. What are the spin-off markets?
12. What are the needs in that market segment?

Ask yourself the following questions about your clients:

• How many family members are typically in your client’s households? 
• What hobbies and/or sports do your customers enjoy? 
• What publications do they subscribe to?
•  What types of entertainment do they like?; e.g. movies or opera.
• How else do they enjoy spending their free time?

Ask yourself the following questions about your business clients:

• What growth stage is the company in? (start-up, growth, stable or decline)
• What is the type of workforce they employ?
• What is the company's culture?
• What is the management style?
• What trade associations do they belong to?
• What publications do they subscribe to?

Target Market Strategies
Marketing Strategy is the process that allows you and your Financial Services Practice to concentrate its resources on the greatest opportunities to increase sales. Know thy market(s) and gain sustainable competitive advantages thru customer satisfaction.

1. Single-segment strategy: This is a concentrated strategy. One market segment (not the entire market) is served with one marketing mix. 
2. Selective Specialization: This is a multiple-segment strategy which deploys different marketing strategies to selected marketing segments e.g. The same retirement investment product carries a different promotional message or advertisements in different market segment.
3. Product Specialization: the company, firm or practice specializes in a particular product and customizes its offerings to different market segments. The Popcorn Factory  executes such a strategy brilliantly. The Popcorn Factory, specializes in fresh popped popcorn in exclusively designed tins, yet it markets corporate gifts differently than individual gifts.
4. Market Specialization:  The company, firm or practice specializes in serving a particular market segment and offers that segment an array of different products. Ameriprise, Merrill Lynch, Met Life and Prudential offering a full line of financial and investment products to different market segments would be a great example.
5. Full market coverage: The company, firm or practice tries to serve the entire market. This coverage can be achieved by means of either a mass-market strategy in which a single undifferentiated marketing offering is deployed to the entire market, or by a differentiated strategy in which a separate marketing mix is offered to each segment.

Market Segmentation

Demographic Characteristics
Identifying factors such as age, gender and ethnicity can help Financial Services Professionals address the needs of your target market. A potential client’s family characteristics, such as marital status, family size and structure and the stage in the family life-cycle (e.g., single, married with young children, college-age children leaving home, retired with chronically ill partner) are also important to understand, since they can affect needs, issues, priorities, preferences, and usage patterns.

Socioeconomic Characteristics
Household income and related variables, such as level of education, social status and occupation, can also influence potential clients in terms of the way they make decisions about seeking and utilizing services, what type of information they want, and how they evaluate their options. Socioeconomic factors can also shape whether people select a provider based on cost, value or quality and whether or not they can afford your services.

Geographic Characteristics
Knowing where your potential clients live, work, shop, attend school and engage in recreational activities can help you identify effective ways to reach them. Defining the geographic area (e.g., county, city, neighborhood, zip code) allows you to identify the marketing opportunities and communication channels available and focus your promotional efforts in those areas. For example, if most of your clients live in a few specific neighborhoods, it may be more effective to advertise in the local community newspaper or directory listing, rather than in the larger city newspaper that serves the metropolitan area. Knowing whether people are relatively settled or relocate and change jobs frequently can also shape your marketing approach.

Psychographic Characteristics
How potential clients see you, the services you offer and the people who seek those services has an important bearing on how you market your practice. What your target clientele values (e.g., positive relationships, achievement, independence, personal growth and development, status) will influence the type of communications they attend to and the way they respond to your marketing efforts. Understanding the subgroups that your potential clients identify with and their general lifestyle (i.e., the way they allocate time and money and the types of activities they value) will also help you communicate effectively with them and provide services that meet their needs.

Service-Related Characteristics
Understanding when and under what circumstances prospective clients access services, how ready they are to make changes in their lives, and their most likely usage patterns will inform your marketing efforts. Similarly, factors such as how your target clientele finds out about available services, how well informed they are, who influences their decisions and choices, and who the typical referral sources are also have important implications for how you communicate with them.
Note: Source for Market Segmentation is APA Practice

Market Segmentation In Action!

Oral Satisfacters?
Palo Alto Software's (Business Plan Pro Software) founder Tim Berry made the following statetement in an article in INC magazine titled Segment the Target Market in Your Business Plan:“ I knew a company that was selling candy bars through retail channels. They segmented the market in a way that defined a range of products as "oral satisfacters" (their term, not mine). That included candy, cookies, soft drinks, and bagged chips. The segmentation helped the marketers understand their real competition, which wasn't just other candy bars, but also other products targeting the same customer money. That understanding of competition improved the marketing and sales programs.”

“It Is The Music Stupid!”
A recent Multicultural Marketing Study by The Segmentation Company  (Yankelowich Group) helps Financial Services companies understand that understand how different types of promotional events resonate with the Hispanic community. The study revealed that:

• Music is a more universal interest than sports.
• Music is more relevant across Hispanic sub-segments.
• Concert attendees are generally of a higher income bracket than sporting event patrons.

These insights play a crucial role in Financial Services companies decisions to invest in the music sponsorship events rather than sport events

We Use To Be “The Marriott”
Marriott used to be “The Marriott”. Years ago Marriott’s management team deployed “Target Marketing” by breaking their market into segments and then concentrating marketing efforts in different ways in selected segments... hence Marriott International: 

FULL SERVICE LODGING	SELECT SERVICE LODGING	EXTENDED STAY LODGING
Marriott Hotels & Resorts JW Marriott Hotels & Resorts Renaissance Hotels & Resorts Marriott Conference Centers Ritz-Carlton	Courtyard by Marriott Fairfield Inn by Marriott SpringHill Suites by Marriott	Residence Inn by Marriott TownePlace Suites by Marriott Marriott ExecuStay Marriott Executive Apartments
TIMESHARE	SENIOR LIVING	SPACE Travel & Lodging
Marriott Vacation Club International (MVCI) Horizons: Marriott Vacation Club Marriott Grand Residence Club The Ritz-Carlton Club	Marriott Senior Living Services…Assisted Living (Senior Citizens)	Stay Tuned…

Here’s A Financial Services Professional’s Example Of Target Marketing:
“The Physician Market”…You Can’t Work The Galaxy

Many Financial Services Professionals think that the key to success is to sell across all markets and all people. Instead they should go deep into one or two market niches.

Here’s a working example: Maranda Morris
Maranda Morris is a Financial services Professional that wants to specialize in the physician markets. She wants to focus on insurance and estate planning. Maranda decided that “The Physician Market” is too large a universe to travel thru. After reviewing her market research, Maranda breaks the markets into segments and decide that since there are over 3 large cardiac centers in her town…her focus would be Cardiologists and related occupations such as Cardiovascular Technologists and Technicians.

Unique Value Proposition - UVP
Your unique value proposition is a mandatory requirement in your marketing or business plan. The marketing research and strategic planning we just discussed will lead to your Unique Value Proposition - UVP.  Many businesses fail because the UVP is non-existent or is not clear. You can have the best products and price. You still need a strong UVP. (See  Personal Sales or Practice Management Brochure also)

What Is The UVP?

Unique refers to what makes your product or service different or superior …that distinguish you from as many of your competitors as possible.

Value is the intrinsic worth of your offering to your customers. It conveys very quickly what your customers get for their money. Client surveys will help you with one.  Use your company’s compliance approved survey form as a part of your market research.

Do me a favor…Visit client and do them in person with existing clients. (No less than five). This face time will also communicate your concern through your interest in understanding your customer better, which will result in a positive value perception, of you, on the part of your customer. Once done, do a critical review of this valuable client input. Now convert into a value statement.  Take this input and translate it into concise statements…no more than two.

Make Your UVP Universal
Once you have completed your Unique Value Proposition…write it down. Organize all of these elements into a few sentences. The fewer the better.

Samples - UVP

• If You Are Speaking To A Retiree: “I'm a financial professional and I work with retirees on two main issues. (1) Strategies to prepare to sustain enough income throughout retirement (2) helping to protect their assets from depletion because of Long Term Care expenses.
• If You Are Speaking To A Younger Person: “I am a financial professional and I work with families that are working to grow insurance and financial assets to help with the events in their lives…such as education, retirement, etc.” I also provide strategies for protection of assets.”

Target Market Work Sheet
The worksheet below offers you an opportunity to focus your marketing activities. Just fill in the strategy in each area as one sentence. Also consult with other Financial Services Professionals in your office that have successes in target marketing. For those that need a more detailed form…please use your company approved Marketing Plan.

Marketing Plan At A Glance
Category	Strategy/Focus/Comments
Broad Market(s)
Market Segmentation:
Demographic Characteristics:
Socioeconomic Characteristics:
Geographic Characteristics:
Psychographic Characteristics:
Service-Related Characteristics:
Identify Your Target Market Audience:
Positioning Statement (Unique Value Proposition - UVP)
Products and Services:
Protection Products (Insurance):
Wealth Generation: (Investments):
Wealth Management (Managed Money):
Elder Care ( Long Term Care)
Wealth Transfer ( Estate and Inheritance Planning):
Referrals and Introduction Strategies
Strengths and Weaknesses:
External Opportunities and Threats:

Involve | Attend | Participate
Market yourself…get visible. Participate in associations and trade shows . You also get to meet the people that you have been talking to by phone. You can even invite business owners and industry executives to participate in focus groups. Get known as the “go to” person and expert. The key to success is not who you know…but who knows you. List the targeted associations, tradeshows and activities in your Marketing Plan.

Gateway to Associations and Tradeshows

• Internet Public Library: Associations on the Net | Search Associations on the Internet through the Internet Public Library.
• Small Business Associations | BusinessTown: Find an association or organization that will help support your business. These groups supply industry specific information, advice and member benefit. 
• The  National Council of Nonprofit Associations website contains helpful resources for nonprofits, including information on NCNA and the state assocations.
• The Ultimate Trade Show Directory for Exposition and Exhibitor: TSNN.com is a powerful international trade show gateway.
• U.S. Chamber of Commerce May Help: The world’s largest business federation representing more than three million businesses and organizations of every size.U.S. Chamber of Commerce

Do not Forget The Executive Summary…The Helicopter ViewPoint
Do not forget “The Executive Summary” It can only be written after the complete marketing plan is completed. The summary is a helicopter viewpoint of your product services offerings, your target market and needs within the market. The Executive Summary also provide an overview of the main points of the marketing plan and action plan with completion dates. “The Executive Summary” sells” the marketing plan.

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Don’t Forget Your Personal Sales or Practice Management Brochure
A high-quality Personal Sales or Practice Management Brochure is a useful marketing tool that enables you to reach potential clients and referral sources. Think of it as an introduction to your practice, a quick reference guide that communicates key information concisely and effectively. A Personal Sales or Practice Management Brochure can also increase your referrals.Do not think of your Personal Sales or Practice Management Brochure as advertising…it is a reflection of you and your practice focus. It quickly conveys professionalism and client-focused service. (See Unique Value Proposition - UVP also)

Your Personal Sales or Practice Management Brochure should:

• attract your target audience. (consider both prospective clients and referral sources)
• quickly convey your Unique Value Proposition.
• answer the questions perspective clients and referral sources often ask you.
• carry positive images of you and your Financial Services practice and company. 
• convey what differentiates your Financial Services practice and sets you apart from the other mental health professionals in your area.
• convey what services do you offer?
• communicate your particular niche or practice focus e.g. children with special needs. You really need to spotlight this in your Personal Sales or Practice Management Brochure.

A great idea is to evaluate brochures from your colleagues and competitors. Identify your likes and dislikes to help you decide what content and design will work best for your own practice. Use a similar “look and feel” for your brochure and all your other marketing tools. Please use compliance approved company logos and brochure language. Check with your compliance officer. Keep the content of your brochure straightforward and concise. Include only relevant information. Use short sentences and a conversational writing style to enhance readability.

Components of A Effective Personal Sales or Practice Management Brochure 

Cover: The cover of your brochure should be simple and visually appealing. Include the name of your practice; a graphic, such as your logo or an image of your building or office; and a slogan or quote that communicates your core message.

Inside: Start by welcoming prospective clients or referral sources. Include a brief summary statement that describes your practice (use or paraphrase your mission statement).

• Next, provide more detailed information about your practice. Use your answers to the questions in the Getting Started section above to describe the population you serve, the services you offer, and your overall treatment philosophy. Tailor your message to your target audience and emphasize the things that make your practice stand out.
• Include a brief professional bio with your name, credentials including any board certifications, background, training, and other professional qualifications. Careful…Do not include your entire resume. Please use a headshot taken by a professional photographer gives your brochure a personal touch and can help form a connection with prospective clients. Conclude this section with a hook. Encourage the reader (prospective clients and referral sources) to follow up. Don’t hesitate to use a hook that urges your target audience to take action. Encourage prospective clients and referral sources to call for more information, visit your website, or schedule an appointment.

Back: List your contact information, including address, phone number, fax, email, and website. Be careful not to list any information that is likely to change soon. Clearly describe your location using a map and directions for driving and taking public transportation, as appropriate to your clientele.

Best Practice Tips

• Always use positive language and include a summary of the benefits of your services.
• Avoid jargon and clichés yet keep in mind that the 12 most powerful words in the English language are You, Money, Results, Save, Health, New, Discovery, Proven, Easy, Guarantee, Love and Free. Use these words in a compliant and ethical manner.
• Also use high quality paper and printing. This will convey that your work is professional and high caliber.

Need Help?
Of course you are a Financial Services Professional…nor a Graphic Designer. So keep life simple by using pre-approved Personal Sales or Practice Management Brochures and templates your company may provide. If you need to employ a Graphic Designer, go the American Institute of Graphic Arts (www.aiga.org), a professional association for designers with more than 16,000 members.

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Sales Pays The Bills…Marketing Keeps You In The Game!
We hope this discussion helps you create a marketing plan that works for you. Great company fail because they go “Off  Mission”. They also fail if they do not have a Unnique Value Proposition –UVP . A effective marketing plan will carry your UVP and it will contain the marketing strategies to keep you “On Mission”. A great time to start is right now. 

Additional Resources Used:

• Don't know enough about your potential customers to write your business plan? Categorizing them will help you more easily define and relate to your market. Inc Magazine
• Business Plan Pro - Business Plan Software -Create a business plan the easy way…
• Target Market News - The Consumer Market Authority | Provides corporate marketing news that targets minorities, including African Americans.
• The Segmentation Company (A Yankelowich Company) TSC  specializes in creating custom, needs-based segmentation that uncovers the motivating needs of your consumer and prospects. From Marathon To Music