How to Identify Your Target Market
Last Updated: Sep 9, 2018
Target marketing is a strategy that focuses your marketing efforts on individuals and businesses who are most likely to buy from you. Here are 6 steps for identifying your target market.
A target market is a specific group of consumers or businesses you concentrate on reaching when you market your products or services.
Defining that target market correctly is one of the most important things you can do 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. Additionally, you’ll get better results from advertising if you focus it at those people who are most likely to buy what you sell.
But how do you do go about identifying that target market? How can you tell who’s most likely to buy?
Here are six steps that will help you focus in on your target market:
A good way to determine who is likely to become your customer is to clarify the problem that your product or service addresses. 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 target customers for your services.
Listing out the characteristics of your typical customer is another good step towards identifying your target market. 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 their homes. 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.
Many products and services address the needs of a variety of people but they still have a primary audience. These are the people who:
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.
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.
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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.
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.
Figure out who your customers are and where you can find them with this free, fillable Market Research Worksheet.
© 2018 Attard Communications, Inc. All Rights Reserved. May not be reproduced, reprinted or redistributed without written permission from Attard Communications, Inc.
About the author:
Janet Attard is the founder of the award-winning Business Know-How small business web site and information resource. Janet is also the author of The Home Office And Small Business Answer Book and of Business Know-How: An Operational Guide For Home-Based and Micro-Sized Businesses with Limited Budgets. Follow Janet on Twitter and on LinkedIn