With the current state of the economy, it is essential that your organization has a well defined target market. As the saying goes “You can’t please everyone,” this rings true even more so in the business world. There will be a group of people who love what you do, some who hate what you do, and some who are indifferent. The goal of your company is to target those who love what you do.
There are some businesses who say that they target homeowners, or small business owners, or stay at home moms. These groups are too general in nature and won’t get you the results that you are looking for.
Defining a specific market doesn’t mean that you are eliminating those who don’t fit a certain criteria. Instead, target marketing allows you to direct your brand message and marketing dollars on a precise market that has the highest probability of buying from you. This is an efficient, affordable and effective method of reaching potential customers and generating business.
With a distinctly defined target audience, you are capable of determining how and where to market your company. Here are some tips for effective target market analysis.
Evaluate not only who has the most need for your products and services, but also who is most likely to purchase them. You should take into consideration the following factors:
- Income level
- Ethnic background
- Marital status
2. Your completion
Your competition is going to offer similar products and services to your company. Therefore, if you familiarize yourself with their target market, it will give you an idea of who you need to target. This is in no way an encouragement to directly target your competitions clients, but what you will probably find is that there is a niche market that they have yet to discover.
3. Evaluate your current customers
Who are your current customers, and why do they purchase your services? Look for common interests and characteristics and identify what brings you the most business. It is more than likely that there are other people like them that you are yet to locate.
4. Analyze your products and services
List the features of your products and services, and then list the benefits. Once you have generated this list, make another list of people who have a need that the benefits of your products can fulfil. This will provide you with a good foundation to build upon.
Psychographics determine the more personal characteristics of an individual, such as:
Evaluate how your products and services can enhance the lifestyle of your target audience. When and how will they use your product? What is it about what you provide that appeals the most to your target audience? What do they search for online? Do they read newspapers or attend certain events?
Target market analysis is an essential element of your business; it is advised that you invest greatly in this process in order to maximize your potential profits.