In the current state of the business economy, having a well-defined target market is more important than ever. No one can afford to target everyone because every small business can effectively compete with large companies by targeting a niche market. In that way, targeting a specific market doesn’t mean that you are excluding people who do not fit for your criteria. It allows you to focus on your marketing strategy and bring brand awareness on a specific market that makes customers to buy your product.
For example, consider an interior design company called XYZ who choose to market home to homeowners who earn an income of $150, 000-plus and whose age is between 36 and 65. To define the market, they can start to choose the target audience who are interested in modern and traditional style. They can also search in two niches- parents on the go and retiring employees or old aged people who are interested in those criteria.
Ways To Identify Target Audience
Check Out Your Competitors
First, analyze your competitors like who are your competitors targeting and who are their customers and find their niche market.
Analyze Your Product / Service
So, after too much of struggling; now your product is ready! Then, list out the features of your product or services. In addition to this, try to point out the benefits it provides. For instance, a graphic designer offers high-quality design services, and he or she is capable of creating a professional company image. Generally, a professional image will attract more customers, which in round make your company more professional and trustworthy. As a result, the high-quality design will capably gain more customers as well as make a huge profit.
Choose Specific Demographics to Target
Once listed out the benefits of your product or service, make a list of people who have a need that your benefit fulfills. After this, figure out the details of who is most likely to buy your product. Suppose, safety matches are your product, then gather the following factors of demographics like age, gender, marital status, occupation, ethnic background, income level, location, and more. Among this, try to consider the psychographics of your target audiences like personality, attitudes, behavior, interests, hobbies, and values to determine how your product or service will fit into their lifestyle.
Evaluate Your Decision
Once the target audience is fixed, be sure to figure out these questions. Suppose, if you’re running a business as a wholesale safety matchbox distributor, throw out these questions. If the answers are ready, your sales funnel will get increased.
- Are there enough people to buy my product? Is my product beneficial for them?
- Can they use my product? For how long they are using and why they are using it?
- Can I reach them with good branding image? Is my product easily accessible to them?
While considering those criteria of questions and if you find that only 50% of the people fill all your criteria, then reevaluate your target audience and do follow the same procedure again.
That’s it! Once you define the target audience, your sales will up, but not up to the end. So, you need to reassess your target audience for every six months or once a year periodically. Why because the tastes and preference of the customer will change. So, get a ahead of the curve and beat your competitor.