Hit the Bull’s Eye Every Time: Know Your Target Market

As a real estate agent who works on commission, it’s probably very important for you to sell a certain number of properties each year. Many people assume that having a fantastic product is the key to meeting a sales quota. Although that’s part of the mix, having a great product doesn’t matter if you’re not marketing that item to the right people.

 

Let’s think about the perfect product for a real estate agent like you. Perhaps it’s a four bedroom colonial with a large price tag in a gorgeous suburban neighborhood, inside the boundaries of a school district that mothers would kill to get their children into. Now ask yourself, who can I sell a property like that to? Your initial thought might be “anyone” or “who wouldn’t want to buy a house like that?” When you have that mind set, you aren’t thinking like a marketer. 

 

Not just anyone will purchase that property. If the audience you are marketing to can’t afford to buy the house or has no real need for it, you will have a problem selling it. 

 

If you want to be a successful agent and marketer, you need to learn how to hit your target market every time you advertise your agency or promote your listings.

 

Tired of missing the bull’s eye? 

 

What do you mean I can’t market to everyone?

 

Let’s get back to the house described in the body of email; the nearly flawless colonial in the ideal neighborhood. Although the property may be appealing to a majority of people, you won’t be able to close the deal if you’re doing business with twenty-three year old newly weds with no equity and a combined total of $60,000 in student loan debt to boot.

 

 How consumers in general feel about your property doesn’t matter, you need to hone in on those who have needs, wants and desires that can be satisfied by owning such a home. Forget about marketing to everyone; focus on a specific group of “someones”. 

 

Who are these people? How do I choose them? 

 

The best way to start finding your target market is to gather data. Look at the general area your agency lists homes in: is it urban, suburban or rural? What is the average home price in the community? Are there reputable schools?

 

Then you need to obtain demographic information about the people currently living in that area so you can market to prospects who fit a similar mold. What is the average household income in the area? What ethnicities are prevalent in the town? Other important areas of information to examine are the residents’ marital status, age brackets, religion, education, occupation and over all life style.

 

 

But how do I go about actually obtaining the information?

 

Basic demographic information such as age or income brackets can be obtained from the census bureau. Developing and administering consumer surveys in the area is another effective method. 

 

As for obtaining the more in depth information about lifestyle and buying behavior, a focus group is usually the best bet. During a focus group, the person hosting the session can ask a group of consumers questions face to face. If you want the best results, let a third party administer the questions. If you allow an internal member of your agency to be the host, they may unconsciously word questions in an influential way. 

 

 Focus groups are useful because you can acquire a lot of qualitative information that will give you a more in depth look at consumer feelings. You can also see if group members are influenced by the opinions of others in the group. 

 

Both surveys and focus groups take up consumers’ time, so it is nice to offer a small incentive for people to participate. 

 

I have the information. Now what?

 

Based on the information you’ve gathered, you can now calculate and analyze the data to determine your target market. 

 

For example, you can say:

 

My target market is made up of males, ages 28-38 who are living in the

Delaware

Valley

. They are employed and have incomes of $50,000 or higher. They are also married with zero to two children.

 

If you want to get really detailed, you can even analyze your target consumer. This is the ideal person who would need the type of properties that you are selling.

 

You can say:

 

My target consumer is a man, age 30 living in

Philadelphia

,

Pennsylvania

. He works in business and earns an income of $75,000. He is married and has two children. He enjoys traveling, boating and working out. 

 

Finding your target is a vital part of the marketing process. Of course, sometimes people who do not fit this mold will purchase one of your properties. However, you can let your target be your focus. Throwing your ideas out there to everyone is way too vague. If you market to everyone, you risk your message getting lost in media clutter and even qualified buyers may fail to see it.

 

Wait! One more question: How do I apply these findings to my marketing efforts? 

 

There are two main ways that target market information can benefit your marketing materials. First of all, you can use it to fine tune your message so that it will spark the attention of potentially interested people.

 

What kind of slogans would the members of your target market find interesting? What type of jargon do they understand? Remember, words and phrases can vary based on geographic regions or age brackets. You need to make sure you are speaking in your target audience’s language. It’s not their job to understand how you think; it’s your job to convey the message the way they think. 

 

You can also use the information to make sure you are selecting the mediums that your target market is mostly likely to see. If your target market is the 65 and over crowd, the internet probably isn’t the best medium to select. 

 

Do the members of your target group drive to work everyday? If so maybe it’s a good idea to place an ad on a billboard. Is your target market a group of 30 years old men? If the answer is yes, it would probably be a poor idea to advertise in a women’s magazine. You get the idea; use these statistics to your advantage. Get the most bang for your buck out of your advertising and marketing dollars by placing messages where your target audience is already looking.