Identifying Your Target Market: A Step-by-Step Guide
If you want to sell more of your products and services, then it is vital that you identify who is most likely going to buy from you. This not only helps you market your products or services but also helps you refine them so that your potential customers get only the highest quality. So today, we are going to provide you with a handy, step-by-step guide that will help you pinpoint your target market. Let’s get right into it!
Step 1: Analyze Your Products/Services
Knowledge is power!
The first thing you need to do is figure out what and whose problems you’re trying to solve with your products, which will help you form an initial idea of your target market. After all, you don’t create products just because—there needs to be demand!
Let’s say you’re selling babyproofing products. Your target market will be people who have babies—young parents, single mothers, etcetera. Then, get more specific; these people likely have full-time jobs and can’t afford to hire someone to constantly look after the kids.
Step 2: Conduct Market Research
*Note: Market Research involves a lot more than just 'Googling' something.
After analyzing your offerings, you need to assess how well they’ll be received by consumers, and the most effective way to do so is to conduct market research. We’ve already discussed the importance of doing market research in a previous blog post!
Some of the most insightful data can come from both existing and prospective customers. Use tools like surveys, focus groups, and in-person discussions to get systematic, reliable information. This will help you understand your target market’s needs and what changes you can make to your products or services to fit those needs better.
Step 3: Create Customer Profiles and Market Segments
Don't be like Flanders.
The next step is to break your market down into various categories using demographics and psychographics. Market segmentation is vital to conducting a comprehensive analysis of your market because your consumers are not all the same. Many different groups may want your products for different reasons!
With the data you’ve gathered from your market research, you can now classify your consumers by their age, educational attainment, gender, ethnic background, etc. But while demographics are important, they barely scratch the surface. Think about your consumers’ lifestyles, personalities, values, and really get into their heads.
Step 4: Study Your Competitors
“If you know the enemy and know yourself, you need not fear the result of a hundred battles.” — Sun Tzu
This step is a bit different from the others because now you’ll be focusing on your competitors rather than your consumers. Don’t worry—you’ll soon understand why we’re doing this.
Taking a look at how your competitors market themselves and their products will give you an idea of industry best practices and practical strategies you can use! It will also help you identify opportunities you can capitalize on. See if any of your target audience's needs and wants are going unnoticed by others in your industry—that could be your golden ticket!
And there you have it! We hope you picked up some useful advice from this blog. Identifying your target market will help you greatly—not just in marketing, but everything from product development to sales! And if you want more great business tips, check out our blog!