One of the most important tasks that every entrepreneur has to come up with is to properly analyze and define their respective target markets. If you are not sure about the group of people who are actually going to make your venture a success, you cannot achieve big things. In this article, Matthew Davies Stockton looks at how to define your target market. So, whenever you’re ready to set the ball rolling, your marketing ROI (Return on Investment) gets maximized.
The ways to define your target market are listed below:
1. Know yourself better- You simply cannot satisfy your consumers when you’re not well-aware of your business. Ask yourself several questions:
- Why would people buy from you?
- What can your company offer that the others don’t?
- Do you have some particular fields of expertise?
- Do you own ideas/products that can be beneficial for a particular group of people?
- Do your consumers share similar interests with you, or they don’t?
- Would you be happy with your service if you were a consumer?
All these questions will help you realize what kind of service your customers are likely to get from your company. Once you have your benefits listed, try to reach out to people who necessitate services that your business fulfills.
2. Know your consumers better- Look for common characteristics and interests of your present customers and try to gather information and data. You can simply narrow your target market down by taking a funnel-like approach that CEOs of many big establishments tend to prefer. If your product or service is gender-specific, for instance, you can begin the process of narrowing your audience down almost immediately. You can take the age-range to be the second filtering factor.
For example, if you’re selling sports equipment then your target market should be young people and not the old ones. Your third and final filter might be income level – you cannot expect middle-class families to be your regular customers if you’re selling expensive designer clothes. When you know exactly whom you’re selling your products to, things tend to become easier.
3. Know your competitors- Having an assessment of what your competitors are up to can help you answer some crucial questions:
- Are your competitors going after the target consumers as you are?
- Are they reaching segments you’ve failed to give a thought to?
- What is their approach to reaching their target audience?
When you manage to gather all the answers, it will certainly be easier for you to define your target market.
4. Make the best out of the internet- Join forums and groups where people share similar interests and try to engage in conversations. Have a look at your website and social media analytics regularly. Create polls and forums to collect the opinions of your consumers by asking simple questions. Include criteria such as age, gender, location, etc. at the online feedback section, and don’t forget to go through and analyze them on a regular basis.
Matthew Davies Stockton suggests you understand that defining your target audience does not mean that you are excluding people who are a misfit in your criteria. Rather, target marketing helps you to focus your marketing investment on a specific market that is more likely to buy from you than other markets. This is a very efficient way to reach your potential clients and flourish in your business.