Advertising is necessary for most businesses to promote their products and services and win customers. But different businesses need advertising for reasons.
Some companies need advertising for name recognition. For these businesses, it is essential that potential customers become familiar with the company name and what it offers. Advertising helps create this awareness.
Others use advertising for image building. Maybe they want to communicate that their company is modern, progressive, or environmentally responsible.
Then there are firms that use advertising to generate leads and inquiries. They want potential customers to contact them directly. Advertising provides the means to make this happen.
In this article, we define the advertising target market as the group of companies that need to advertise. We’ll segment this market by analyzing the reasons why companies need advertising and then study the motivations of each segment.
Understanding the Advertising Target Market
To best understand the advertising target market, we need to first understand the reasons why businesses advertise.
By understanding their motivations for buying advertising, we can divide this market into customer segments and study each segment on its own.
This needs-based segmentation allows advertising agencies to create packages and offer services that their business clients are likely to want and buy.
Such a market analysis gives us these main segments of the advertising target market:
- Companies that want to grow awareness of their brand
- Companies that want to improve or change their image
- Companies that want to generate leads and inquiries
- Companies that want to promote a new product or service
- Companies that want to increase sales
Now let’s take a closer look at each of these segments.
1. Companies that want to grow awareness of their brand
A common reason for advertising is to increase awareness of a company and its products or services.
This is especially important for small businesses or businesses that are new to a market. Advertising can help potential customers become familiar with the company name and what it has to offer.
It can also be useful for companies that are rebranding or launching new products. In these cases, advertising can create buzz and excitement around the release.
2. Companies that want to improve or change their image
Advertising can also be used to improve or change a company’s image.
This is often the case for companies that are going through a rebranding process. Advertising can help communicate a new message to potential customers.
It can also be helpful for companies that want to appear more modern, progressive, or environmentally responsible. Advertising can help create this image for the company.
3. Companies that want to generate leads and inquiries
There are different ways with which companies generate leads and bring in inquiries including personal selling, publicity, sales promotion, cold calling and advertising.
Advertising can be a great lead generation strategy when businesses want potential customers to contact them directly.
Often, ads will include a call to action, such as “call now” or “visit our website.” This helps encourage potential customers to take the next step and reach out to the company.
4. Companies that want to promote a new product or service
When companies roll out a new product or service, they can have different goals like building awareness, generating leads, or increasing sales. Advertising can help achieve all of these objectives.
Building awareness is important so potential customers know that the product or service exists. Advertising can create excitement and interest around the release of this new product or service.
Companies also need to generate leads so they can sell the new product or service. Advertising can help to generate these leads by providing a call to action for potential customers.
Finally, companies want to increase sales of the new product or service. Advertising can create demand and encourage customers to purchase the product or service.
5. Companies that want to boost sales during slow periods
Finally, some businesses use advertising for sales support. Advertising can help boost sales during slow periods or promote special offers and discounts.
This can help businesses generate revenue and keep customers interested in their products or services. Advertising can also help businesses clear out old inventory to make room for new products.
In this article, we reviewed the advertising target market as the group of companies that need advertising in their businesses.
We segmented the market based on the reasons companies advertise.
Some companies advertise to grow awareness of their brand. Others use to re-brand themselves and improve or change their image.
Some companies use advertising to generate leads and inquiries. Sometimes this is for an existing project or it is an ad-blitz to promote a new product or service.
And finally, during market slumps companies will turn to advertisements to generate demand and push old inventory out of the door.