How to Define Your Target Market

Define your target market

Knowing who you’re selling to is essential for successfully marketing your offer. Whether you’re starting a new construction business, revamping an existing one or just fine-tuning your marketing plan, construction market data can help you define your best customers so you can reach them more effectively.

Geographics

Finding out where your potential buyers are located is a critical first step in defining your target market. One of the easiest and most accurate ways to do this is to identify trends in building permit applications. If you sell swimming pools and spas, data on where the most pool installations are happening is invaluable. Finding out which neighborhoods have the most high-value home remodels could also lead you to buyers. Building permit activity mapping lets you see at a glance where and what kinds of projects are going on, which alleviates having to sift through pages of irrelevant data.

Demographics

Once you know potential buyers’ location, get familiar with the demographics of the area. Learn the community’s age ranges, gender ratio, average family status, occupations and income levels. Will you be selling pools and spas to young families who care primarily about safety and fun for the kids or to older adults who might be more interested in your products’ health benefits and ease of maintenance? Building permit trends can offer insight here, too. If the average value of remodeling projects in an area is low compared to the average home value, you might want to market toward a frugal audience.

Psychographics and Behavior

Understanding your potential customers’ values, interests and favorite activities helps you connect with them on a personal level and sets you apart from the generalists. Let your own company values guide you. If you’re committed to sustainability, consider targeting nature lovers who enjoy hiking. If social responsibility is important to you, focus on buyers involved in volunteering. A property developer who donates to community projects or groups is more likely to choose a contractor or building materials supplier who does the same.

For more on using construction market data to define your target market, contact Construction Monitor.

Construction Marketing: 4 Things to Learn From the Competition

Because no two construction businesses are quite the same, your competitors are bound to have insight you don’t. Data on the top companies in your area gives you a better understanding of how your successful competitors do business so you can learn from their experience.

  1. Spot new opportunities – Learning what your competitors are working on and where they’re working helps you find new buyer sources. If you sell cabinets and notice a lot of renovations going on in a neighborhood full of historical homes, you’ll know a strong market for traditional cabinetry exists in the area. On the other hand, studying your competitors’ strengths and weaknesses can lead you to potential gaps in the market you can take advantage of in the future.
  2. Find fresh marketing angles – By evaluating the marketing messages, methods, and channels your competitors use, you’ll get a better idea of what works and what doesn’t. Your competitors’ marketing can also spark new ideas. If your floor covering competitors’ marketing emphasizes their durable office flooring, you might take the idea a step further by creating content that demonstrates exactly how much wear your office flooring can handle.
  3. Optimize your pricing – Checking out your competitors’ prices can tell you if you’re underpricing and leaving money on the table or if your prices are unusually high and possibly driving buyers away. If you find your prices are higher than average, but for good reason, you’ll know to highlight those reasons in your marketing.
  4. Stay on top of trends – If you’re a general contractor, the fact that two or three of your main competitors have cut back on their home addition services is valuable information. If building permit data also shows a decline in home additions, it’s safe to assume you shouldn’t rely on that market in the near future. That information can save you from inaccurate predictions that could sink your business. If you see a new product appear in a competitor’s ads, this can alert you to a trend before everyone else jumps on it.

For more on using what you learn from competitive analysis, contact Construction Monitor.

Is Your Marketing Strategy Well Informed?

Taking educated guesses about your target market might have worked decades ago, but with the wealth of data available today, it’s no longer sufficient or necessary. By leveraging data on the construction projects happening in your area, you can develop a marketing strategy based on facts instead of assumptions.

Researching Your Market Through Building Permit Data

Building permit data is a valuable source of insight into the types of construction services and products that are in demand in your area. Refining your data searches by project type, contractor or valuation gives you a more nuanced understanding of your market. With this knowledge, you can focus your marketing efforts on the hungriest audiences. If you sell waste management systems, you might notice permit data shows more commercial buildings than apartment buildings are going up. That tells you to focus your marketing strategy on promoting systems suitable for commercial waste management.

Work in an area that includes both urban and rural residents? Building permit data can show you whether there’s a stronger market among city housing developers or farms in need of agricultural buildings. Knowing that will inform your choice of marketing methods, platforms, and messages.

Including Top Companies in Your Competitive Analysis

You can learn a lot by reviewing data on the types, valuations, and locations of the projects top companies are working on. Knowing what your most successful competitors are up to helps you find new opportunities and spot things you might be doing wrong.

As a roofing contractor, if you discover all the top roofing contractors market their roof replacements and repairs more heavily than their new roof construction services, you can be sure that’s a profitable angle. On the other hand, if none of them specialize in flat roofing, a little further investigation might lead you to an untapped market. If your content marketing material doesn’t emphasis the low-maintenance aspects of your roofing as much as your competitors’ do, you might want to pay more attention to that.

For more ideas on using data to develop your marketing strategy, contact Construction Monitor.