Identifying and defining your target market is one of the most important things to do as a business. It will allow you to plan an effective marketing strategy and can help you branch off into new directions. However, it’s not always that easy to do. You should follow steps so that you know exactly who your products/services will be directed to.
Below we are going to take a look at seven tips that can help you define your target market.
Want to learn more? Then keep on reading.
Table of Contents
Analyze your current customer base.
The first step in defining your target market is to take a look at your existing customer base. What type of people have been interested in your service/product? By looking at patterns and analyzing the results, you have a better understanding of where to begin. There are a few ways to do this, some of which include:
– Social Media Analytics
– Web Mining
– Crowd Sourcing
Create a list of your product/services benefits.
After analyzing your current customer base, you want to make things easier by creating a list of your products/services and outlining their benefits. This will help you better visualize what exactly draws people to your brand.
For instance, you might be selling a new luxury perfume. What about it is unique? And what people would be interested in its benefits? Try and see things from a different perspective.
Take a look at some examples.
If you really don’t know much about target markets, one of the best ways to fully understand what they are is to take a look at some examples. This allows you to compare yourself and think about what individuals will be buying your products. Some popular examples to get you started include:
– Lego: At first glance, you may see Lego as a toy that is designed for young children. However, parents are the ones who are buying it, so the marketing strategies are also targeted at them.
– Coachella: This popular music festival aims itself at young individuals who like to be unique and expressive.
– Adidas: While also worn for fashion purposes, this brand mainly aims itself at consumers between 13-30 who are interested in sport and physical activity.
Understand demographics and psychographics.
Demographics and psychographics are the components that make up a target market. To define yours, you need to understand what they are and how they work.
Demographics: Demographics refer to the distinct characteristics of a population or group. They include things such as age, gender, income, socio-economic status, religion, and education.
Psychographics: Psychographics refers to a particular group’s interests and opinions. They include things such as hobbies, personality, values, and lifestyle.
Observe the competition.
While it’s not always wise to focus too much on the competition, analyzing them does come in handy when it comes to business. By looking at their target market, you get a better understanding of what people might like your products as well.
You never know; while you’re at it, you may be able to find aspects that you can improve on. Or better yet, identify the strengths that make you unique. You can find more lessons you can learn from your competitors here.
Test paid advertising and document results.
Sometimes, trial and error are the best way to get accurate results on the individuals that like your brand. By testing paid advertising on different demographics and documenting the outcome, you can clearly see where you should aim your campaigns. However, it would be best if you kept in mind that it’s probably not the most cost-effective way to define your target market. It’s something that should be done carefully, after following the advice above.
Review the market regularly.
Finally, the last tip that you need to remember is that even once you have identified your target market, you should review it regularly. Over time, the individuals that once liked your product/service may change. This shouldn’t be disheartening but instead, encourage you to target new people and increase your audience reach. The one thing about business is that you always need to be evolving. Standing still is only going to hold back your progress.
And that’s it! These were seven tips to define your target market. By following the above, you can create an effective marketing strategy to take your business to the next level. It just takes a little bit of hard work and dedication.
Good luck!
About Carson Derrow
