If you have been in business for any length of time, you probably understand the concept of a target market. These individuals are most likely to purchase your product and can be defined by specific demographic, geographic, or lifestyle characteristics. However, getting a clear definition of your audience can be challenging. Therefore, these are a few tips for analyzing target markets.
Research Your Competition
One of the first tasks you complete when you build a business plan is to research your competition. You probably have information about their specific products and services, the industry you compete in, their marketing strategies, and their customer base. You may also have information about their sales tactics.
If your competition’s customers are satisfied, you may have to spend a lot of money trying to convert them to your company. However, if you analyze their potential customers, you may find ways you can satisfy them better. You can also find gaps in their target market that are not being filled and focus your efforts on these individuals.
Analyze What You Offer
You have very specific products or services that you offer your customers. They typically appeal to a very specific group of people based on the need they fill, the problem they solve, or the benefits they provide. Find out why your customers are purchasing your products.
Then, seek customer feedback about your products. You should also discuss any challenges or problems with your products with your serviced department. Compare your customers to your initial target market. Do they fit? Are there types of customers who are outside your audience who are purchasing your products and services?
Segment Your Market
Break down your audience through segmentation. This means that you separate them based on demographic, lifestyle, behavioral, or geographic characteristics. You may find out what they value, what their interests are, or where they fit on your targeted income scale.
Then, narrow down your target to the customer characteristics that may most influence a purchase or adoption.
Expand Your Research
Now that you have a better idea of exactly who is purchasing your product and why you can dig deeper into this group of individuals. You can use this research to adjust the size or characteristics of your target audience and build marketing initiatives that will better appeal to them.
However, as you implement new strategies, don’t forget to continue analyzing and tracking your results. You may have to make adjustments as you go along, especially if you identify major changes in your market.
Target markets play a key role in effective marketing. By building a profile and targeting your marketing toward these individuals, you get more out of your marketing budget.