Are you having problem defining and locating your target market? Some business says, ‘they target anyone interested in their products and services’, others target on small businesses, stay at home mums, etc. Locating your target market is the key to succeed in business. Have it in mind that everyone is not your target market. Your riches in business is in your niche. So why is it important to define your target market for your business?
The problem is, if you have no idea defining your target market, then you will waste a lot of time and money marketing to the wrong people and annoying them with your numerous ads.
Business owners find it tempting to sell to their ideal market but they want everyone to partake in the buying of their goods and services. Understanding the truth of how to define your target market is the foundation to all successful business.
Many make the mistake of choosing their market based on emotions, this is a sure recipe for disaster. There is no room for emotions in the realm of marketing. For you to be able to clearly define your target market, you must know;
• Who your customers are.
• What their problems are.
• What solution you can provide.
Here are my top 7 ways to define your target market:
1. Brainstorm the Problems You want to Solve
Your products or services should have a specific problem it wants to solve in the market. This also answers the question, “who are your customers”? Because your customers are the people who are experience the pain that your products or services can relief for them.
When you pick a specific problem you want to solve, you become clear of who you want to serve.
2. Brainstorm on the People with the Problems You want to Solve
Think of people suffering from the problem you have the solution to. Where they gather online and offline (so you know where to throw your ads), their age level, occupation, income range, etc.
If you run a business to business company, you should find out which business organization need your products and services and why. What do you think would be their problem for them to need what you have to deliver?
3. Analyze Your Products and Services
More ways to define your target market is by analyzing your products and services. Make a list of each features of your products and services. Next to it, write out the benefits and the kind of people that can enjoy those benefits.
4. Assess Existing Customers
Another way to define your target customers is by assessing your existing customers to find out why they buy from you. What demographics and psychographics are compelling them to use your product or service.
Based on your results, you might decide to expand your target market to include another age group, but make sure your logic is based upon the set criteria and not simply your bottom line.
5. Using Demographics and Psychographics for Market Targeting
What psychographic characteristics define your target market? To be successful at defining your target market in your company, you need to include demographics and psychographics of your appropriate customer into the picture.
Demographics includes data like age, education level, marital and employment status, number of children etc.
Psychographics includes psychological variables like interest, attitude and opinion, emotional and ideological beliefs. These are attributes relating to their personality, values, fears and lifestyle.
Using these characteristics, you can draw up a customized customer profile. This is one other way to define your target market for B2B .
6. Demonstrate You know Your Target Market Pain
You’ve likely heard that individuals are by and large determined by joy or pain, and that people will accomplish more to keep away from pain than to pick up joy. When you know your market’s pain, then market openly to that. Show what you can to do to ease the pain, what problems they have and how they can defeat them with your offer assistance.
7. Evaluate Your Decision
Once you have finish defining your target market, you need to consider these following questions;
• Are these really my target market?
• Those these people fit my criteria?
• Can they afford my products or services?
• Are they easily accessible?
• Do I have the marketing message?
Don’t make your target market too small, remember, you can have more than one target market. If eventually you resulted in defining more than one target market your products and services can satisfy, that will be good news because it will lead to more sales and expansion.
Defining an ideal target market is the critical step. When you know your market, it is much less demanding to make sense of which media you can use to contact them and what marketing messages will impact them.
Rather than sending standard mail to everybody in your ZIP code, you can send it just to the individuals who fit your criteria. Spare cash and improve degree of profitability by characterizing your intended interest group.