Most businesses know that a well-defined target market is more important than ever. What they may not know, is that it’s worthwhile to re-evaluate who your target market is because the business climate is always changing. New competitors, technology and economic drifts are just a few factors that contribute to a changing market. Here’s a crash course on defining your target market to get you started:
Understanding who your customers are and how they are changing is crucial to your business. Figure out who has a need for your product or service and tailor your marketing accordingly. Some examples are:
- Income Level
- Marital Status
Psychographics go deeper into the personality of your target market. Some things to consider are:
- Buying motives
- Religious/Political beliefs
Look at your Competition
Who are your competitors targeting? Instead of going for the same market, think about what they’re missing. Here’s a great article by Inc. about how niche marketing can be successful.
Analyze your Product/Service and your Current Customer Base
Think about the features of your product or service and their benefits. Then think about what kinds of customers would benefit from the features. Look for common characteristics and interests in your current customers and find out why they buy from you. Analyzing them can bring in similar customers and lead to opportunities to expand you customer base.
Evaluate Your Decision
You should now have a pretty good idea of who your target market should be. Next, consider these questions:
- Are there enough people in the area that fit my criteria to develop a market out of?
- Would these people be able to afford what I’m trying to sell?
- How and when should I reach them?
- What drives my target to make decisions?
If you can’t find answers to these questions doing a basic Internet search, you might also try looking up blogs of potential customers to see what they’re talking about, asking your current customers for feedback, or even creating a survey for current and potential customers and then offering a promotion item to encourage their feedback.