How to Define Your Target Market

A well-defined target market is mandatory for business success. Target marketing is about attracting customers who will buy what you’re selling. In order to define your target market, you need to know precisely who purchases your products and exactly how to reach them. However, doing so can be difficult. While nothing can replace a well-researched customer profile, there are a few simple steps you can follow to help better define your target market and streamline your marketing and advertising efforts.

Study Your Customers
Start by taking a look at your current customer base. Who are they? What do they buy from you? Which customers bring in the most revenue? The most profit? Knowing these facts can assist in determining other people who might like your product or service as well. Through studying your customers, you can begin to establish patterns that will provide a wealth of information in defining your target market.

Take a Look at Your Competition
Next, take a look at your competitors and how they are positioning themselves with their target markets.
Understanding your competition is key to finding out what they are doing right and if there are any opportunities they’ve overlooked, which will ultimately help you establish your unique differentiator and better define who will likely utilize your products or services.

Analyze Your Product or Service
Take some time to analyze your product or service. Start by listing the features of your product/service. Next to these features list the benefits, and the benefits of those benefits. For instance, if your product is a ready-made family meal, the benefit is a quick and easy dinner solution. The benefit of a quick and easy dinner solution is less time spent cooking and cleaning, and more time spent relaxing with your family. So ultimately, the benefit of ready-made family meals is a happier, easier life.

Once you have all of your benefits listed, make a list of the primary people whose lives will be improved by your product or service. The ready-made family meals, for example, would be perfect for busy, on-the-go working mothers.

Target Specific Demographics
After establishing who has a need for your product or service, and who is most likely to buy it, it’s time to think about the specific demographics of these people. Consider factors such as age, location, gender, income level, marital or family status, and occupation. These factors are essential in effectively defining your target market. In the instance of the ready-made family meals, we would probably target working moms between the ages of 25-45 who are married, have at least one child, and a fair amount of disposable income (e.g. a household income of 60K+), because it’s these women who are most likely to purchase our product.

Consider Psychographics
Getting inside the heads of your customers can also be helpful in defining your target market. What motivates them to purchase your product or service? How does their lifestyle and culture affect their decision-making?
These questions are valuable in helping to understand how your customers think, and this can help you locate other potential customers who think like them. Once you’ve evaluated your customer’s psychographics, you should have a good idea of who your target market is and what’s important to them.

Evaluate Your Choices
Now that you have identified a target market, it’s time to evaluate and study your choice. Are there enough potential clients in the niche that you’ve found? Have you broken your target into too small a size? By evaluating your choices, you have another chance to weed out errors and add more information to better define or establish which target market is best for you.

How Do We Do It At Screamer Co.?
When defining a target market at Screamer Co., we take the guesswork out with the use of our Best Customer Profiling technique. By analyzing the client’s customer base and looking for patterns in customer demographics and psychographics, we are able to hone in on the target audience that will be most receptive to the client’s messaging and products/services. The result is better advertising solutions tailored specifically to the client’s audience, ultimately driving sales and new customer acquisition.

References:
http://www.inc.com/guides/2010/06/defining-your-target-market.html
http://www.interruptmedia.com/2012/06/15/benefits-of-identifying-a-target-market/
http://articles.bplans.com/target-marketing/

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