Are you challenged to find the right market for your product? This guide will take you through the process of knowing and understanding who are your clients and how to find them.
An organization or company will never be successful without knowing their market for the products or service offered. Finding your target market should be one of your top priorities. All efforts are wasted if you don’t have any customers. Consequently, your target market is only reason for your existence.
Let us look closely at the process of finding your target market.
What Is a Target Market?
A target market is a group of people that a company wants to sell its products and services to. This group is composed of individuals with the same needs and desires that an organization wishes to serve.
Identifying the target market is the first step in making a business plan. It is an essential component of developing a marketing plan. Without the right target market, a company will simply fail in its efforts to achieve success.
Importance of Identifying the Target Market
The target market is the primary reason for success in business. Below are the reasons why or of importance of accurately finding your target market.
- Knowing your target market makes you focus on the essential aspects of your business.
- The target market is crucial in creating your product and services.
- Identifying your market allows marketers to create messages and campaigns specifically for them.
- You can save on marketing costs if you know your target market. Your efforts are calculated and more focused, thus avoiding the costs of targeting people who aren’t interested in your products or services.
- By focusing on your target market, you can achieve market competitiveness. You can compete with other players in the industry.
Pointers in Finding Your Target Market
Before understanding your customers, you have to find them first. With billions of people around the world, and with a high percentage of the population going digital, it is vital to find your target market. Try to look deeper into the larger picture to see who deserves your attention and assistance.
Here are valuable tips on how to find your target market.
1. Explore Your Network
In your groups, do you find a set of individuals who may have significant needs you can cater to? Before going somewhere far, start in your own backyard, and check for a potential target market.
Check out your organizations, affiliations, alumni groups or just your neighborhood associations to see if there is something they need. Look at them and check what products they are using. Also, ask around. Say, you have this particular product, and would they use it? If not, why? The information they provide is beneficial to you.
2. Check Your Current Client Database
If you are creating a whole new concept, but struggle to pinpoint a particular target market, the best thing to do is search your own client database. Who are your current customers? And what else might they need? Among your existing customers, who brings in more business for you? These individuals can be a promising target market for your new concept.
3. Competition Matters
Look into competitors because their customers might be yours, too. Knowledge about your competitors, where they are, what they are doing and how they are implementing strategies can benefit you. So, take advantage of the details you get from your rivals.
4. Look at Demographic Data
Look carefully at your requirements and check the demographic data of the market. Consider these Demographic factors:
- Marital Status
- Social Class
- Income Level
- Educational Attainment
- Among others
5. Give Importance to Psychographic Details
Finding your target market is more than just identifying their age, gender, or social class. A potential target market must have a single set of needs and characteristics. You can easily find your target market if you know how they behave, what they usually do and what they are thinking.
As a marketer or business owner, identify what appeals most to your audience. What type of media are they using? Assess your potential target market through the following psychographic information.
- Personal Values
- Interest or hobbies
6. Conduct a Funnel Approach to Find your Niche
Some companies are successfully implementing this concept when targeting a market. The Funnel Approach means to capture a market, nurture it, then qualify and hopefully, convert.
For example, first you identify and capture a market, let’s say for a new cosmetic brand. Once that has been done, you have to nurture them through ads or promotions directed specifically at them, like a free makeover or discount coupon in the cosmetic brand case. Then you must qualify your brand, remind your potential customers of the importance of your brand and what they mean to you, and now, with luck, they will follow through and make a purchase.
7. Go Out and Try It Yourself
The best teacher is experience because of the hands-on involvement. One of the best ways to find your target market is to go out and observe the environment around you. This can be done by pretending that you are a customer, trying out things or merely experimenting with ideas. This is research in its purest form.
Here is an example. You belong to the food industry, and you want to open a new cafe. Study your potential market by sitting in a pastry shop. Observe customers and the cafe personnel as they go through their day. Try to answer these questions:
- What are customers ordering?
- Study the profile of customers. What is the age range?
- Is there a particular product that is most sought after?
- Are customers dining in or taking out orders?
- When is the busiest time for the shop?
- Are people coming in as groups or individually?
8. Explore the World Wide Web
Options in the Digital World are endless. Anything can happen there; customers can access anything they need or want, information is limitless. With this, make sure to take advantage of the Internet.
Observe the behavior of a potential target market through social media. You can also gauge how possible competitors are faring in the market. Also, you have free access to your future customers’ mindset through comments and reviews they give to other players or brands.
If used correctly, the internet has information you can use in finding your target market. Take advantage of it and make it work for you.
A dedicated business owner is customer-centric because the success of a plan starts with knowing its customer base. Now that you have a clear idea regarding your target market, it will be easier define your overall plans.
Finding your target market is never easy at first. But once you locate your customers, everything else will fall into place. This includes creating the right product or service, establishing prices, distribution channels and promotional activities.