An organization or company will never be successful without knowing their target market and who purchases their products or services. Finding the right target audience should be one of your top priorities.
If you’re not able to find and understand your target market, you can’t expect to grow your business. Every niche today is competitive, and you must be the first to figure out the problems that your target audience faces.
Without a properly defined target audience, you risk spending money on marketing campaigns and targeting the wrong people. This can lead your company to go out of business which is something you don’t want to.
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 of developing a marketing strategy. Without the right target market, a company will simply fail in its efforts to achieve success.
A target market can be defined using parameters that include demographic, geographical, behavioral and psychographic factors.
The Importance of Identifying Your Target Market
Your target market is one of the main reasons for your success in business.
Knowing your target market makes you focus on the essential aspects of your business:
- Creating and customizing your product and services.
- Designing campaigns and messages specifically for them.
- Narrowing marketing and sales campaigns, which will result in avoiding all the expenses on targeting people that are not interested to buy from you.
- Achieving a better competitive position in your 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 Natural 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 bring 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
Gathering demographic data and psychographic details of your target customers will help you to build your buyer persona.
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 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.
Related: How to Generate Top-of-Funnel Leads
7. Go Out and Try It Yourself
One of the best ways to find your target market is to go out and observe the environment around you.
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?
The idea is to gather as much information as possible about your customer’s needs, so you can provide the right solution.
8. Explore the World Wide Web
Make sure to take advantage of the Internet. Observe the behavior of a potential target market through social media. Study your future customers’ mindset through the comments and reviews they are giving other players or brands. You can also gauge how possible competitors are doing.
If used correctly, the internet has the information you can use to find your target market. Take advantage of it and make it work for you.
In the following infographic, we have concisely outlined the exact steps that you need to take to identify your target customers and position your business for marketplace success.
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