To identify your target market, you first need to answer these questions: What are you selling, and what makes it so unique? Write out a list of each feature of your product or service. Your end goal is to make it easy for your target demographic groups to see connections between their needs and your product. How old is each person, and what is his or her gender and ethnicity? Figuring out not only who has a need for your product … Almost 50% of millennial women, for instance, shop for clothes more than twice a month, compared to only 36% of women from older generations. Do a primary market research – Once your secondary data is collected, it is imperative that you do a … You may opt-out by. This process – knowing to whom and when to market your product or service – can result in much higher rates of return, and it involves implementing systems, rather than relying on indiscriminate marketing. The key is pinning down exactly who your target customer is — the tricky … If you plan to sell $15 t-shirts, you now have a clearer idea of your target market: millennials who want variety at a lower cost. One way to find such reports is to search the web for terms like "size of the market for [industry or prouct name]". If you do a quick search online, you’ll often find existing resources that can … Lexus A clear and thorough picture of your target market is important for the success of any product and service. Growing this company has taught me valuable lessons about what it takes to be an entrepreneur and scale a company. You can also tap into your network of business colleagues, funders, and mentors. Women living alone who worry about safety may be another potential target for sales. Additionally, you'll get better results from advertising by targeting it at those people who are most likely to buy what you sell. Segments are typically grouped by age, … You have put in the long hours and finally finished making that killer product or service, but your work is not yet done – now you need to introduce people to this offering. Listing out these characteristics allows you to zero in on your target audience accurately. Whatever it is that you’re selling, it’s most valuable to a very … If your product or service is gender-specific, you can immediately narrow your audience. Here are seven steps that will help you identify the audience most likely to buy what you sell. These characteristics need not be personal ones; they can pertain to lifestyle, income earned, disposable income, geographical location, hobbies, and many other things. . It may take some time to figure out, but it’s an essential step of your marketing … To do this, identify your product or … Determine what needs your product fulfills. A target market is a group of potential customers that you identify to sell products or services to. For example, if you manufacture car parts, then your target market … The analysis of multiple streams of data, as well as a continual effort to identify your target customers, can help you achieve this end and maximize your ROI. Would they purchase your own product or service? Chuck Cohn is the CEO and founder of Varsity Tutors, a technology platform for private academic tutoring and test prep designed to help students at all levels of education achieve academic excellence. When is the store busiest? Here is one example of basic market research: Go spend half a day at your local coffee shop. What types of parents will value it? © 2021 Forbes Media LLC. Maybe you manufacture a DSLR camera that can withstand drops onto hard rock and submersion in water. Understanding those issues has been one of the keys to success of the popular Planet Fitness franchise.eval(ez_write_tag([[300,250],'businessknowhow_com-medrectangle-4','ezslot_1',143,'0','0'])); RELATED: Why Should Customers Buy from You? Is a particular drink especially popular? Defining your target market boils down into identifying the specific characteristics of the people or businesses who are most likely to buy your product or service. Whatever your product or service, list out the core values that your product offers, and then draw a line (or lines) to the demographic groups that prioritize these values. May not be reproduced, reprinted or redistributed without written permission from Attard Communications, Inc. About the author: Janet Attard is the founder of the award-winning  Business Know-How small business web site and information resource. They key to target marketing is identifying those audiences … target Market Research Worksheet. Identify Your Target Market Once you’ve identified the types of people that could be helped by your product you can start to develop a better idea of who these people are. Who is most likely to be interested in the values your product or service offers? Millennial men, meanwhile, spend twice as much on clothing as non-millennials do. You can experiment with the order of the sieves and different combinations of filters to see whether you receive a different final result. Why Target Market Is Important in Branding . The first step in identifying your target market is understanding what your products/services have to offer to a group of people or businesses. Find out who your competitors' customers are. Keep an eye on your closest competitors’ marketing campaigns, sales spiels, brochures, websites and social media outreaches to understand their target customer base. Upper income families, families where both parents work, and older people who no longer have the ability to do their own housekeeping, are all target customers for your services. As you answer this question, consider factors like age, buying power, geographical location, and marital status. Janet is also the author of The Home Office And Small Business Answer Book and of Business Know-How: An Operational Guide For Home-Based and Micro-Sized Businesses with Limited Budgets. Keeping track of what the competition is doing is a great idea in more ways than one and it can help you identify your target audience too. One of the most effective things you can do to market your product smartly and efficiently is narrow your gaze – in other words, prioritize. As you look to identify your target markets and construct your key personas within them, remember to always center around the needs, desires, and fit of your … Ford and GM likely know that marketing pick-up trucks to drivers in North Dakota or Texas is more effective than doing so in California or New York. What does this mean in a business context? For some CEOs, it might be helpful to think of the market selection process as a multiple staged funnel. As you work to gather it, here are some guidelines in mind: A. Now that you’ve built that understanding of what your … Which efforts should you prioritize? If you go back to the basic reasons why people purchase goods or services and can find ways to target your efforts to that age group, you may be successful in capturing a bigger share of the market. For example, your first bucket might be gender. © 2020 Attard Communications, Inc. All Rights Reserved. A target market is a group or segment of people who are most likely to become your customers. Many products and services address the needs of a variety of people but they still have a primary audience. While it is relatively simple to develop general advertising for the masses, devoting time and resources to identify more targeted markets can help you maximize your marketing ROI. Think of grouping them into … Even if everyone, or everyone in a particular industry should need what you sell, you won't be able to reach "everyone" on a small business budget. Beyond the buyer personas, you need to look at other indicators to help you examine key factors that identify your core audience. How can you tell who's most likely to buy? Define Your Target Market. The Importance of Identifying Your Target Market. Tap existing resources. Identifying your target audience helps you identify your voice, personality online, what designs to push/discount, and who to target in ads. Regardless of your brand mission, identifying and gaining the devotion of your target audience is the necessary means of reaching your brand objectives. Target marketing is a strategy that  focuses your marketing on individuals and businesses who are most likely to buy from you. Study your existing audience; Your existing customers are the perfect audience for conducting a study on how your target market … If you are a clothing retailer, whether you are offering $15 t-shirts or $500 coats will lead to you very different target markets. Your target market is one of the main reasons for your … Industry publications, statistical information and special reports can all provide clues as to the audience you should be targetting and sometimes how the market might be changing. A good way to determine who is likely to become your customer is to clarify the problem that your product or service addresses. If you are not sure where to begin, the steps below can help you identify your Decide on Specific Demographics to Target. A target market is a group of potential customers to whom a company directs its marketing efforts to promote its products or service. These are the people whose needs you know your product or service will satisfy. This can enable you to correlate positive responses to your product or service with specific demographic groups – the same groups that you should later target. I am the Founder and CEO of Varsity Tutors, a live learning platform that connects students and professionals with personalized instruction to achieve any goal. For a business that specializes in home security, the ideal customers may be in a residential areas that have a high crime rate or who live in high-income residential areas. … Such reports may describe the typical customer age, sex, preferences for items, and other helpful information. A target market is can be defined as a specific group of consumers or businesses at whom you focus your marketing efforts. The problem that you solve is doing cleaning for people who cannot or do not want to do these jobs themselves. You will find that knowing your target market inside and out you'll have the information that you need to achieve your brand marketing … Another target for your marketing might be corporate clients who want their office surroundings landscaped. A target market is can be defined as a specific group of consumers or businesses at whom you focus your marketing efforts. For example, for a bakery, the local consumer may be a recurring source of business, but the icing on the cake (forgive the pun) may be local restaurants who buy breads and desserts in quantity to serve to their customers. Ask them to carefully examine your product or service, maybe even to the extent of trying it for several days or weeks. Whenever possible, draw on diverse perspectives as you build your marketing efforts. You can also build your own micro view of specific types of target customers. Opinions expressed by Forbes Contributors are their own. Certainly, it would be great if the entire world wanted what you have, but that is not realistic. For example, the elderly widow who lives by herself may need to have someone do the cleaning for her,  but can't afford the service herself. Similarly, while there are many adults in the US who think they should go to a gym to work out, a lot don't because they are worried about being embarrassed, or don't want to spend a lot of money, and then not use the service. Either way, the key is to collect demographic data in your surveys. Steps for Identifying Your Target Market If you run a business, you’ve probably heard a thing or two about target markets. Figure out who your customers are and where you can find them with this free, fillable Without the right target market, a company will simply fail in its efforts to achieve success. How to Identify Your Target Market Demographics First, you need to know who your target demographic is. While individuals within your target market are not the only people who buy from you, they are your … If you don’t have a clear target audience in mind, your marketing … All Rights Reserved, This is a BETA experience. Your third and final sieve might be income level – the family purchasing a Kia probably occupies a different income bracket than the family purchasing a ‘Booking.com’ Is A Trademark – Does This Matter To Your Business? Is It Time To Change Director Board Compensation In Private Real Estate Firms? Do you have a need for this product?” or, “Do you know anyone who would use this?” can provide you with valuable data. Here is how to identify your target market in 7 easy steps. The more you know about your current customers' buying preferences, the better you'll be able to target your marketing to prospects with similar needs, preferences and characteristics. Who is most likely to use your product? If your business offers a product or service similar to those already on the market, do as much homework as possible. But it’s much easier said than done. This might mean conducting surveys via e-mail blasts or newsletters, or you might find it worthwhile to contact a marketing firm that can help you gather preliminary data. The next time you are with family or friends, look at what products they use. For your startup company to be successful, you need to identify your target market. I founded my company as a student at Washington University in St. Louis in 2007. Within your target market are people who have … Follow Janet on Twitter and on LinkedIn. Asking questions as straightforward as, “Would you use this? T-shirts that retail for $15 can be bought multiple times each year, while a $500 coat might be a once-in-a-lifetime purchase. A target market can be defined using parameters that include demographic, geographical, behavioral and psychographic factors. What demographic groups are buying these products? Your target market is not everyone who is located in your … Listing out the characteristics of your typical customer is another good step towards identifying your target market. As a startup e-commerce business, identifying your target market is even more significant. Suppose your company makes a baby stroller that is easy to fold into a compact, portable shape. If you manufacture surfboards, marketing your product to octogenarians might result in very limited success. The real customer in this case would be the widow's 50-year old daughter who chooses and pays for the service. Which specific products in the entire lineup are most popular? They key to target marketing is identifying those audiences most likely to buy your products and services.Understanding how to identify that target market correctly is one of the most important things you can do when you're starting a business or launching new products and services. Research, research, and research some more. For example, for a gardening service, one type of target customer is people who live in neighborhoods with well-manicured lawns, attractive plantings and colorful flowers around their homes. Likewise, whenever my company, Varsity Tutors, introduces a new service, such as online tutoring, we carefully analyze who we market to, how, and when. For example, what makes your merchandise different from what people can buy from other big retail chains? Perhaps it is those who travel frequently. They might surprise you and think of target markets that you would have never imagined, as well as innovative ways for those groups to use your product. To whom do you … A target market is a clearly-defined segment of customers that you want to sell your product or service to. Gather survey data to identify potential markets. Also, you may decide, using the example above, that you'd also like to extend your target market to include women from 50 to 60 years of age. When you have a good handle on who your target audience is, you can not only create a product that better suits their needs, you can also craft better advertising and promotional copy to capture their interest and get them to buy. I am the Founder and CEO of Varsity Tutors, a live learning platform that connects students and professionals with personalized instruction to achieve any goal. Analyze your product/service. Ways Entrepreneurs Can Stretch Their Capital. One final tip: remember "everyone" is not a target market. Metrics are a great way to pinpoint promising demographic groups. These final groups you arrive at will make it easier to find the sweet spot that is the intersection of “highly interested” and “able to buy.”. The first step is to decide who you wish to target for your product or service. Your second filter might be age range. A target market is a smaller group of individuals that you do business with. For example, you run a housecleaning service. Yes, We Have No Choice, Gender Bias: Trademark Act Never Contemplated A Woman Or Gay Male President, Cannabis Challenges Differ In Each State Where It’s Newly-Legal, 5 Unexpected Places To Find Your Next Great Business Idea. A target market, or target audience, is the pool of customers to whom you want to potentially sell your products or services. Once you’ve found that information, it helps to create a “brand bible” for your brand: a list of guidelines for how your brand sounds voice-wise, what kind of content you post, what your … To be successful, use the tips above to identify your target market and then structure your marketing materials to focus  on those ideal customers. SCOTUS Said ‘OK’ To Curse Words As Trademarks—Businesses Don’t Care, Can We Save Social Media? There is a plethora of data that you can find online to gather a macro view of the type of customers who are purchasing products similar to what you will offer. First, Understand Your Niche Market. Whatever your product or service, list out the core values that your product offers, … If your competitor’s marketing campaign is aimed at a specific customer segment, there is a good chance he has spotted a marketing opportunity there and that he is exploiting this. This target market is what will guide your marketing strategy, and to an extent, even future … How To Define Your Target Market. When do they buy them? I aim to share those learnings in this column. These are the people who: Knowing who makes up this primary audience should be your goal when you are trying to identify your target market. Assessing your current customers and identifying the common characteristics they share is a great way to learn who else could be a potential customer for you. Next to … It started as a local tutoring platform with only two tutors and has rapidly grown into a technology-driven operation with 300+ employees and 20,000+ tutors. 4 Ways to Identify Your Restaurant Target Market When you came up with your restaurant’s concept, you likely had a specific customer type in mind – freelancers and office workers … In this case, your target market might be outdoor enthusiasts who shop at stores such as Patagonia and REI. There are two different groups of criteria you should look at to begin getting an idea of your target market… Surprisingly, knowing the kind of customer who needs your service may not be enough to win sales. This data might come from a variety of sources. We and our partners share information on your use of this website to help improve your experience. Choosing the right markets also means infusing conclusions with objective data. Once you compile your data, you can then apply the findings to the marketing efforts for your own coffee company. Both women require food and shelter, but at the same time, they might choose to spend their discretionary income in very different ways. As you move through these successive filters, you will eventually arrive at a more focused target market for your product. . market. Here are three tips to help you focus your marketing approaches: A. In this case, your target market might be outdoor enthusiasts who shop at stores such as Patagonia and REI. As people place their orders at the counter, take careful notes – what drink did each person buy? Take, for instance, a recent college graduate who has just started her first job – she will have different needs than a mother of four teenage children. Identify your target market. This is one of the first steps of launching a startup company. Your research may turn up industry segments or names of specific customers you should be targetting. Ask them what they like about your company, how they use your products, how they heard about you (if they are new) and what they prefer about buying from you. If you don't have an established store or website, you … But how do you do go about identifying that target market? Each group can be divided into smaller segments. I founded…. Keeping track of what the competition is doing, have the greatest need for these services/products, buy the biggest quantity of them on a regular basis, are located in a geographic area your business services. Knowing one’s target market allows a business to focus its promotional efforts in a manner that will obtain … The more icing, the fatter the business's bottom line.
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