How to define your target market
When you conceived the idea of your business, you had a group of people in mind you want it to serve. When you started your company , you had this set of people in mind. When you started marketing your product, the strategies you put in place, were aimed towards attracting these people.
This group of people is your target market.
To identify your target market, you must have done a proper research to know if there is a market at all. Consider these questions:
- Are your target customers male or female?
- How old are they?
- Where do they live?
- What do they do for a living?
- Based on their profession, are they the type to walk into your store or just order online?
- How much do they earn?
- Are they the middle or upper class?
For instance, a business producing corporate ready to wear will focus more on targeting working class women, especially those working in structured organizations. The age range of potential customers could be 21–40. This is not to say that men shouldn’t be targeted as they could shop for their spouses, sisters or friends, but 90% of marketing strategies will be geared towards attracting working class women between the ages of 21 to 40.
The location of your store isn’t much of a factor, as long as you have an online presence or a website, that will enable your customers order directly from your website or social media pages. In this case, you will need to know where your target market is on social media, that is, the platform they use the most and employ online marketing strategies to attract them.
You are also able to decide on your pricing based on your research. Will your customers be able to afford luxury items? How many percentage of them? What can you offer the remaining percentage? This is where you decide if you provide all luxury items or have other categories for the middle class.
Look out for more information
Keep a list of primary research questions handy, such as:
· Who influences your customers and how? Peer groups, professional colleagues, children and the media can all affect buying decisions. Look for hints that one or more of these are a factor for you.
· Why do they buy? Distinguish between the features and the benefits your product or service offers. Features describe what it is; benefits are what your customers get out of it. The latter is why your customers pay you. Are they looking for a status symbol, a savings in time or energy, a personal treat or something else?
· Why should customers choose you and not your competition? What can you offer that the competition doesn’t?
· How do your customers prefer to buy? Many businesses benefit from the broader market provided by the Internet and mail order, while others do better with a physical presence. Don’t assume you fall into one category or the other; customers may surprise you.
Identify your typical client
Think about your typical client — who are they, name them, write down everything you know about them, their family status, age, sex, marital status, where they live, where they work, possible income level, their shopping characteristics.
· Do they like to use discount codes or shop on certain days?
· Do they call you at the last minute to get something from you?
· Do they value your service/product?
· Is that type of client the most profitable type you have or the most non-profitable and you just like them?
By knowing who your target market is, you are able to tailor your product/service to suit these people’s needs, to better determine if there are enough potential customers for your business, target your marketing strategies to reach promising potential clients, and create your marketing messages appropriately- by using the right language and tone to appeal to your potential clients.
If you have been in business for years, you should consider defining your target market if you haven’t done so. This will make you aware of the latest trends, what your customers want and don’t, reach new customers and keep you in check.
