Knowing your target market is key in building a successful business. It is fundamental to understand your target audience – who they are, where they are, and what they want from your product or service. Be specific – the clearer the picture, the more successful you will be in attracting customers, adding value, and retaining loyal customers!
What is a target market and a target audience and why is it important?
A target market is a specific segment of individuals most likely to purchase a particular product or service. Individuals within the target market share similar characteristics including geography, demographics, needs and behaviour.
Within a target market, you also need to define your target audience – this is a group of individuals targeted by specific marketing messaging. To communicate effectively, you need to understand who they are and what their true needs are. Depending on your business, you may have multiple audience types within a target market, or your target market and your target audience may well be the same.
While you may have an idea of your target market and target audience, a deep dive into their likes and dislikes, pain points, geographic location… could have a massive impact on how you position your product or service. It will help you develop an effective marketing communication strategy focused on the right customers and can also impact future business strategy. The more information you have on your target market, and your target audience, the more successful your marketing efforts will be.
How to identify your target market?
Now that you know what a target market and target audience is, the following steps will help define the market you should be targeting.
1. Understand the problem you are solving.
It is essential to understand the problem that you are solving in terms of the outcome for your customer. Don’t just think about what you do or how you do it, focus on the benefits of your product or service. Once you have identified the benefits, the next step is identifying who will benefit from it.
2. Identify who will benefit from your offer.
Who has the greatest need for your offer? Who will gain the most benefits or who is the most willing to pay for your offer? Answering these questions will allow you to begin creating your target market.
3. Paint a picture of your customer – demographic profile, geographic location …
Now you can start to narrow down your target market by characterizing your customers. Group them by location, demographic profile, hobbies…Defining them in as many relevant ways as possible will help you develop your target audience.
4. Know your competition.
Once you’ve identified your target audience, it is important to understand who your competition is. They may not have the same offer as you but are competing in a similar space. Identify what sets them apart from you. Knowing who else is present in your market and keeping track of what they are offering is key may help you gain insight on new customer segments or emerging trends.
5. Identify your uniqueness.
Once you have defined the problem your solving, who you are targeting, and who else is present on the market, the final piece of the puzzle is to identify what makes your product or service unique! What sets you apart from the competition and drives customers to you?
Knowing your target market and target audience is essential in building a successful brand. “Everyone” is not at target market! Defining your target market is not a guessing game but requires investing time in understanding your target audience and marketplace. Clarifying your target market and target audience can help grow your business and develop effective marketing & commercial strategies that will save you time and money in the long term.
So…what are you waiting for?
If you need help or advice with identifing your target market, don’t hesitate to contact us.
