Are you unable to find your target market? 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 target market and who purchases their products or services. Finding this demographic 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’s 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 to developing a marketing plan. Without the right target market, a company will simply fail in its efforts to achieve success.
The Importance of Identifying the Target Market
Your target market is one of the main reasons for your success in business. Below are the reasons why or of importance to accurately finding your target market.
- Knowing your target market makes you focus on the essential aspects of your business.
- The target market is crucial to 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 that you find your target audience. Try to see the larger picture to find out who deserves your attention and assistance.
Here are a few valuable tips on how to find your target market.
1. Explore Your Network
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 may be 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 any new concepts you might have.
3. Competition Matters
Research your competitors – their customers might be yours, too. Knowing your competitors, where they are, what they are doing and how they are implementing strategies can benefit you. So, take advantage of any information you can get from your rivals.
4. Look at Demographic Data
Look carefully at your requirements and check the market’s demographic data. Consider these Demographic factors:
- Marital Status
- Social Class
- Income Level
- Educational Attainment
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. Likewise, you can easily find your target market if you know how they behave, what they do and what they are thinking.
As a marketer or business owner, identify what things appeal 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 a discount coupon. 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 cafe. Observe the customers and the cafe personnel as they go through their day. Try to answer these questions:
- What are the customers ordering?
- Study their customer profile. What is the age range? How much do they spend on average?
- 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 doing. Additionally, you can study your future customers’ mindset through the comments and reviews they are giving other players or brands.
If used correctly, the internet has information you can use to find your target market. Take advantage of it and make it work for you.
A dedicated business owner is always customer-centric because the success of their business starts with knowing its customer base. They are the heart of everything.
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 products or services, establishing prices, distribution channels and promotional activities.