5 Tips On Determining Your Target Market
September 3, 2013 2 Comments
Whether your planning on starting a small business or have already started, a crucial item is knowing who your target market is. Most likely you have already spent a lot of time planning your business (hopefully). A big part of that planning should include deciding who will be focus of your marketing efforts. Everybody wants as many people as possible to know about their product or service. But the more customers you want to reach, the more time and money it will take in order to reach them. Defining a target market might feel overwhelming to you, but just remember that it is a crucial part of your overall business plan. Selecting a target market will also help save you time and money in the long run. By focusing on a certain demographic of people who might be interested in your products or services will allow you to communicate with that segment more effectively.
Here’s how to get started:
1.) Review Your Business Plan – Think about the needs that your products or services fulfill. Think about what makes your business different other companies providing similar products or services. Now think about who might be interested and have a need for what you are offering. As you consult your business plan and decide who you want your audience to be, remember that it is ultimately about the customer. Don’t think about who you would like to sell to, think about who is looking for the products and services you offer.
2.) Conduct Research - You can begin by using secondary market research. Some sources you can use are:
The best part of using secondary research is that someone has already done the work. Plus, most of the information is free. A shortfall of this information is that it may not be 100% useful for your business. No matter what, it is always a good idea to do some research. Trying to do marketing without the proper research is like throwing money out the window.
3.) Develop A Customer Profile - This is an in-depth description of who your typical customer may be and includes demographic information that include age, gender, location, ethnic background, marital status, income, and more. It should also include psychographic information. Psychographic information goes beyond basic demographics and identifies more about a customer’s interests, hobbies, values, attitudes behaviors, lifestyle, buying patterns and more. Both of these types of information are crucial for developing your customer profile. Demographic information is used to identify who will buy your product or service and pychographic information will explain why they may buy your product or service.
4.) Find Out How To Connect – After you have identified who your target market is, you will need to find out how to connect to them. You will need to find out what kind of websites they visit and which social networks they use most often. Are they constantly on their mobile device? Do they use a lot of apps? Do they read papers or magazines? If so, what papers or magazine do they read? By knowing this information and putting it into your customer profile will help you know how best to spend your marketing dollars.
5.) Monitor Your Marketing Efforts – The work doesn’t stop after you have determined your target market and have a plan in place to reach them. Marketing is a continuing evolving system that requires constant monitoring. You will want to know how your current marketing is working, what you can do to improve it, and how you plan to market into the future. Part of this is being aware of how your customers are evolving as people. Have ways of tracking your sales, quality assurance, requests for more information, and more.This is the information that will help you stay on top of trends, patterns, and areas that need improvement. All of which will change as your business grows.