When it comes time for business owners and CFOs to cut budgets, marketing and advertising are often the first places they turn to. As a marketer, you need to be able to recognize why this isn’t such a good idea and be able to voice your reasons. It’s tempting for businesses to try to cut money from something in which they don’t see immediate results, but doing so could spell disaster for the business in coming months and years.

By evaluating how effective your marketing is, you can present a strong argument to the CFO about why marketing and advertising budgets are not where cuts should be made. Or, maybe you can at least lessen the cuts and allocate the marketing budget into areas that will prove to be stronger than others (like moving money into the successful direct mail budget from the unsuccessful billboard budget). But evaluating your marketing is hard to do if you don’t first do research into who makes up your target market. Once you know that, you can measure the effectiveness of your marketing campaign more accurately.

Do Your Target Market Research
Traditionally, marketing involves four broad steps, which all have their own sub-steps: planning, creative development, execution and measurement. I’d like to talk more about the planning step, because I think it’s most important. Good planning sets the stage for the rest of your marketing campaign.

The insight you get from knowing your customers and their preferences will impact your marketing position and distribution channels, your media selection, the price of the product or service and your advertising offers.

Of course, researching your target market could go on for months, and can get as detailed as you want (and as detailed as you can afford!). But there are three absolute basics you must know about your customers:

Demographics: This consists of age, gender, occupation, education, income level, location and family circumstances (kids, single, married?). Lifestyle factors can also be included here. Do people have a long commute? Do they spend a lot of time outdoors? What roads do these people generally drive on?

Behavior: Is your target market full of people who love the outdoors? Are they spenders or savers? Do they like to watch TV or read magazines? What do you they like to do and what do they spend their money on?

Needs: What do they need? Why would they need your product or service? Do they know they need your product or service? Do you need to have late hours for those that work or can you be open during the day for stay-at-home moms? How can your product or service fulfill a need?

These three basics will help you create a rough sketch of what your target market looks like. Knowing these basics will allow you to create and product effective print brochures and color posters, choose the right colors in your logo and choose the right distribution channels for your marketing efforts. You have to know your audience before you can create a product or service that they’ll want to spend their hard earned money on.