How to Define Your Target Market
Identifying customers within the target market or primary market is the most important element to be successful with any business. For starters, discovering your primary market enables your organization to identify high yielding customers. In other words, you can identify leads and prospects that have an interest in your products or services.
In addition, this marketing technique helps your organization identify valuable leads and prospects and convert them into customers. In the long run, ensures the longevity of your company.
Tactics to determine who your target market customers are:
- Website analytics — There are several platforms that their members analytical services (Google Analytics, Matomo Analytics, Hotjar, HubSpot).
- Social media analytics — There are several platforms that offer their members analytical services (YouTube analytics, LinkedIn analytics, Facebook analytics).
There’s no doubt, identifying the target market or primary market is one of the top priorities for developing a successful marketing strategy. Your organization can’t sell products or services without customers.
Purpose of Identifying the Target Market
It’s impossible for companies to survive without identifying the target market in the 21st century. To be honest, you must identify valuable customers for several reasons, but I’ll name three.
Identifying your perfect customer is the main purpose for identifying the target market. Most of us don’t have money to waste. Attempting to target every customer would be a complete waste of time. Therefore, it’s essential to narrow down the list of customers to do business with. More specifically, customers are likely to purchase products and services.
Once you’ve identified your most valuable customers, you can begin targeting these individuals. But before you can begin targeting your perfect customer; you must understand what they need and expect. So the second reason for identifying your target market would be understanding customer expectations.
Lastly, recognizing your primary market gives you the ability to perfect your marketing mix. Understanding your primary market is crucial because seeing eye to eye with customers you’re targeting opens a window of opportunity to develop better products and services. Once you understand your customer’s expectations, you can tailor your marketing mix to their needs and wants. In other words, you can either begin meeting or exceeding consumer expectations.
Target Market vs Target Marketing
Many people get confused with the target market and target marketing because the concepts are closely related. However, these concepts serve two different purposes even though they’re similar.
Example of the target market for clothing and apparel stores: wealthy consumers seeking designer fashion.
Example of target marketing for clothing and apparel store: aiming marketing campaigns that appeal to women ages 20-30, shoe size 6-9, located in U.K. and U.S.
The target market refers to the group of individuals in which an organization aims its marketing efforts and resources. This process helps businesses identify the perfect customer. Whereas, target marketing is a marketing technique used for pursuing customers. It involves concentrating your message or marketing campaign on a specific market. This process helps organizations find their perfect customer.
Ways to Define Your Target Market
Since the beginning of time, the backbone of marketing campaigns has been acquiring valuable customers. A company, without customers, equals no company. Therefore, it’s essential for organizations to discover customers that are valuable to your organization.
Defining the target market is an essential step of strategy development. It allows your organizations to identify valuable customers. You can learn substantial factors about the customers and marketplace. Matters include customer characteristics, behaviors, demographics, and geographic(s) just to name a few.
Look at Your Rivals Target Market
If you don’t know who to target, look at who your rivals are targeting. To state the obvious, you and your competitors should have the same target market. Therefore, examining the customers your rival is targeting would only make sense. It would save you time and energy.
You can begin by analyzing the techniques and strategies your rivals use for engagement. This can be accomplished by executing a process known as the competitor analysis.
Examine and Understand Your Current Target Market
To understand your current target market, you must research and study the behavior patterns of existing and potential customers. You must develop an understanding of both parties to identify gaps. Or areas in which you can improve.
Examing your existing target market will help you narrow down your perfect customer. There are a few techniques you could use to examine your existing customers. The first technique would entail using digital technology to analyze your website, blog, or social media profiles. Secondly, you could use surveys or focus groups to gather information on your existing customers.
Segmenting Your Customers
When examining customers, it’s important to check for similar characteristics. You can start by searching for behavioral patterns that are like your current customers. If you’ve recently launched your startup business, you may want to start with segmenting your customers.
Segmenting is a process that gives you the ability to pursue high yielding customers. In other words, segmentation enables you to identify customers that are likely to purchase your product(s) or services.
Research Your Potential Target Market
Market research is vital because it allows you to view your business environment from all angles. The process involves gathering information about your target market, consumers, and competitors. In addition, research provides you with information about the marketplace along with internal and external analysis of your corporation.
Here are a few ways to determine if a customer will benefit your organization;
- Ask yourself is the consumer interested in your products or services?
- Can the consumer be influenced to become one of your customers?
- Does the customer purchase products or services from your competitors?
- Can your organization meet the customer’s needs, wants, and expectations?
- How often should we interact with our target market?
- Does our product(s) or service provide value to our target market?
- How can we influence consumers in our marketplace?
- What can we do to make customers happy?
Furthermore, performing market research gives your organization the ability to uncover the needs and wants of customers. You can use quantitative techniques, i.e., anything that must do with numbers like data analysis, statistics, etc. By the same token, market research gives you the ability to use qualitative techniques, (i.e., surveys, focus groups, interviews).
Analyze Your Products and Services
When analyzing your products and services, it’s important to focus on customer satisfaction. In other words, you must understand customer wants, needs and expectations. It’s essential to understand what the customer expects for their time and money. Given the information, it’s advisable to look at your products and services from the consumer’s perspective.
In addition, you need to identify the strengths and weaknesses of your product(s) and services. This can be done by performing a SWOT analysis.
By the same token, this analysis will help you uncover market opportunities and threats. You can use the information gathered to avoid obstacles and take advantage of new opportunities.