How to Identify Your Target Market
by Janet Attard
Knowing your target market is the best way to be sure your advertising dollars are spent wisely and that the products and services you sell are what your customer actually wants. Here are six things to help you identify your target market.
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Identifying your target market is one of the most crucial steps you need to take when you're starting a business or launching new products and services. When you have a good handle on who your target customer is, you can not only create a product that better suits their needs, you can also craft better advertising and promotional copy to capture their interest and get them to buy. But how do you do identify that target market? Here are six criteria that will help you focus in on the people most likely to buy what you sell.
Start with the problem
A good way to determine who is likely to become your customer is to clarify the problem that your product or service addresses. Understand this and you know who needs your product, that is, who is your customer. For example, you run a housecleaning service. The problem that you solve is doing cleaning for people who cannot or do not want to do these jobs themselves. Upper income families, families where both parents work, and older people who no longer have the ability to do their own housekeeping, are all people who may need your services.
Define your customer’s characteristics
Listing out the characteristics of your typical customer is another good step towards identifying your target audience. These characteristics need not be personal ones; they can pertain to lifestyle, income earned, disposable income, geographical location, hobbies, and many other things. For example, for a gardening service, one type of target customer is people who live in neighborhoods with well-manicured lawns, attractive plantings and colorful flowers around the home. The business could also target corporate clients who want their office surroundings landscaped. For a business that specializes in home security, the ideal customers may be in a residential areas that have a high crime rate and in high income residential areas. Women living alone who worry about safety may be another potential target for sales. Listing out these characteristics allows you to zero in on your target audience accurately.
What is your primary market?
Many products and services address the needs of a variety of people but they still have a primary audience. These are the people who gain the most benefits, have the greatest need for these services/products, have the ability to pay for them, or those who buy the biggest quantity of them on a regular basis. Knowing who makes up this primary audience should be your goal when you are trying to identify your target market. For example, for a bakery, the local consumer may be a recurring source of business, but the icing on the cake (forgive the pun) may be local restaurants who buy breads and desserts in quantity to serve to their customers. The more icing, the fatter the business's bottom line.
Study your current audience
Assessing your current customers and identifying the common characteristics they share is a great way to learn who else could be a potential customer for you. Understand why your current customers buy from you, assess which customers are your most promising or loyal ones. Now you know the profile of the people who are most likely to become your customers. This is a good starting point to identify your target audience.
Who does your competitor target?
Keeping track of what the competition is doing is a great idea in more ways than one and it can help you identify your target audience too. If your competitor’s marketing campaign is aimed at a specific customer segment, there is a good chance he has spotted a marketing opportunity there and that he is exploiting this. Keep an eye on your closest competitors’ marketing campaigns, sales spiels, brochures, websites and social media outreaches to understand their target customer base. Your research may turn up industry segments or names of specific customers you should be targetting.
Who buys and why?
Surprisingly, knowing the kind of customer who needs your service may not be enough to win sales. For example, the elderly widow who lives by herself may need to have someone do the cleaning for her, can't afford the service herself. The real customer: the widow's 50-year old daughter who chooses and pays for the service. Similarly, while there are many adults in the US who think they should go to a gym to work out, a lot don't because they are worried about being embarrassed, or don't want to spend a lot of money, and then not use the service. Understanding those issues has been one of the keys to success of the popular Planet Fitness franchise.
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One final tip: remember "everyone" is not a target market. Even if everyone, or everyone in a particular industry should need what you sell, you won't be able to reach "everyone" on a small business budget. To be successful, use the tips above to help you focus in on those customers most likely to buy and to buy in the biggest quantity.
Copyright 2015 Attard Communications, Inc. May not be reprinted or reproduced without permission.