How to Define Your Target Market
No One Can Afford to Target Everyone
Look at Your Current Customer Base - Who are your current customers, and why do they buy from you?
Look for common characteristics and interests. Which ones bring in the most business? It is very likely that other people like them could also benefit from your product/service.
Check Out Your Competition - Who are your competitors targeting? Who are their current customers? Don't go after the same market. You may find a niche market that they are overlooking.
Analyze Your Product/Service - Write out a list of each feature of your product or service. Next to each feature, list the benefits they provide (and the benefits of those benefits). For example, a graphic designer offers high quality design services. The resulting benefit is a professional company image. A professional image will attract more customers because they see the company as professional and trustworthy. So ultimately, the benefit of high quality design is to gain more customers and make more money.
Once you have your benefits listed, make a list of people who have a need that your benefit fulfills. For example, a graphic designer could choose to target businesses interested in increasing their client base. While this is still too general, you now have a base to start from.
Choose Specific Demographics to Target - Figure out not only who has a need for your product or service, but also who is most likely to buy it. Think about the following factors:
- Age
- Location
- Gender
- Income level
- Education level
- Marital or family status
- Occupation
- Ethnic background
Consider the Psychographics of Your Target - Psychographics are more personal characteristics of a person, including:
- Personality
- Attitudes
- Values
- Interests/hobbies
- Lifestyles
- Behavior
- Determine how your product or service will fit into your target's lifestyle. How and when will they use the product? What features are most appealing to them? What media do they turn to for information? Do they read the newspaper, search online, or attend particular events?
Evaluate Your Decision - Once you've decided on a target market, be sure to consider these questions:
- Are there enough people that fit my criteria?
- Will my target really benefit from my product/service? Will they see a need for it?
- Do I understand what drives my target to make decisions?
- Can they afford my product/service?
- Can I reach them with my message? Are they easily accessible?
Don't break your target down too far! Remember, you can have more than one niche market. Consider if your marketing message should be different for each niche market. If you can reach both niches effectively with the same message, then maybe you have broken down your market too far. Also, if you find that there are only 50 people that fit all of your criteria, maybe you should reevaluate your target. The trick is to find that perfect balance.
Read the full article at: inc.guides
Patty Block, President and Founder of The Block Group, established her company to advocate for women-owned businesses, helping them position their companies for strategic growth. Charting the course for impactful, sustainable, profitable businesses, the beacon is control: of your strategic direction, your money, your time, your staffing, and your ability to bring in business. The Block Group brings together the people, resources and ideas that build results.
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