Market Analysis in Direct Response Marketing - Is Your Chosen Market Worthwhile?

There are many business owners and entrepreneurson your business plan.
who unknowingly make simplemistakes that can cost3. Is your market profitable; do the majority of
them thousands if not millions of dollars before theyprospects that you are targeting have adequate
realize what went wrong.purchasing power to afford the products or services
Here are 3 reasons we found why so many directyou are offering. Sometimes a rough estimate can be
response marketers go wrong.done using demographic data to accomplish this until
1. Insufficient knowledge and experience in directadditional testing proves different.
response marketing. They know their products profit4. Is your target market accessible; can you easily
potential but miss the point entirely when it comes toreach this target audience? By doing some research
evaluating what their market universe or demographicin databases using the SIC (standard industrial code)
potential really is.you can easily find how many of these prospects
2. They concentrate totally on the product instead ofthere are in your targeted geographic area and group.
on the market, and analyzing their chosen marketsThese are a few questions you should ask yourself
limits.before pursuing and investing in a market.o What
3. Lack of knowledge and experience in directinterests or expertise do I have that can be used to
response marketing and the evaluation of risk.solve problems for people in a particular group?o Do I
There are several important steps or questions thathave contacts or notoriety in a particular area that
should be asked in determining your target market.can be leveraged to accomplish this?o Can I find
Before settling on a target market, make sure theywhere these people all conjugate or hang out at with
meet these 4 criteria. If your target audience doesease?o Are the people in this group able to pay what
not meet all of your criteria, you may want toI need to charge them for the product or service I
consider choosing a different target audience,want to provide?o Is this the easiest group to reach
expanding your reach, or altering your products sowith the least amount of effort and in the least
they appeal to a larger group.amount of time? In other words can this market be
1. Is your market identifiable; in other words doesconsidered the lowest hanging fruit to pick?
your target audience have a set of commonIn summary these are some of the things you must
characteristics that you can easily identify? Identifyinglook at and ask yourself before you start to commit
all of the chiropractors' offices in a specific area is anto an industry, group of people or particular niche you
easy audience to target. However, identifying peoplewant to market your product and services to. You
that are not happy with their chiropractor is a moreneed to get absolutely clear on the type of customer
difficult thing to know.you want to attract to your business and
2. Is your market of considerable size; would thisdetermining their numbers will be the single most
target market be able to sustain your business.important step in beginning any marketing plan or
Sometimes targeting too small of a geographic areacampaign.
or specific group can have an adverse financial effect