How do I clearly define my target market?
Firstly, we must ask what does it mean to define a target market?
From the moment you came up with your business idea, you probably had a specific customer in mind. When you tweak your service or product, you do it with them in mind. When you write your promos, you highlight the features that will interest them most and use language they understand.
This is a great way to think. It gives focus to everything you do, but you’re probably making a lot of assumptions about what your target customers really want and how much they want it. When you define your target market, you’re doing a little research to make sure you’re not misleading yourself about who’s going to spend money with you.
When to do it?
It’s a good idea to define your target market before launching your business. The exercise will help you test a lot of assumptions before you sink too much money in the wrong things. It’s a lot less expensive to change direction at this early stage. But even if you’ve been in business for years, it’s helpful to keep defining and refining who your target market is to stay in touch with who your customers truly are.
Defining a target market can give you three important pieces of information
1 Is there a market?
2 Who’s in the market?
3 How do they think?
Dig around and see if there’s enough demand to sustain your business. Are people (or businesses) buying your category of product? What portion of that market is “gettable” for you?
Once you’ve confirmed there are customers out there, start to get more focused. Who are those people? What’s their age? Start by going after a specific niche group within the market. That way you can really get to know your target customers.
Once you’ve identified who your target customers are, you can start to find out what makes them tick. What do they care about most? Use this information to promote the product benefits that are most relevant to them. Where and how do they shop?
Defining your target market is just the start
You don’t need to get too carried away with this type of research in the startup phase of your business. You’re just aiming to confirm there is a market there and to learn a little about who they are. It’ll slow you down if you do a heap of research now.
As you get underway, however, you’ll want to keep learning more about your target customers. The more you know them, the better you can serve them – and the smarter (and more cost-effective) your marketing can be.
Not sure where you should start? That’s why we’re here. MB+M exist to make your life easier, so why not give us a call today on 5821 9177 for a FREE consultation to see how we can make your dream become a reality.