How to Define Your Target Market
To build a solid foundation for your business, you must first identify your typical customer and tailor your marketing pitch accordingly.
Given the current state of the economy, having a well-defined target market is more important than ever. No one can afford to target everyone. Small businesses can effectively compete with large companies by targeting a niche market.
Many businesses say they target “anyone interested in my services.” Some say they target small-business owners, homeowners, or stay-at-home moms. All of these targets are too general.
Targeting a specific market does not mean that you are excluding people who do not fit your criteria. Rather, target marketing allows you to focus your marketing dollars and brand message on a specific market that is more likely to buy from you than other markets. This is a much more affordable, efficient, and effective way to reach potential clients and generate business.
With a clearly defined target audience, it is much easier to determine where and how to market your company. Here are some tips to help you define your target market.
Look at your current customer base.
Who are your current customers, and why do they buy from you? Look for common characteristics and interests.
Check out your competition.
Who are your competitors targeting? Who are their current customers? Don’t go after the same market. You may find a niche market that they are overlooking.
Analyze your product/service.
Write out a list of each feature of your product or service. Next to each feature, list the benefits it provides (and the benefits of those benefits). For example, a graphic designer offers high-quality design services.
Choose specific demographics to target.
Figure out not only who needs your product or service, but also who is most likely to buy it. Think about the following factors:
Marital or family status
Consider the psychographics of your target.
Psychographics are the more personal characteristics of a person, including: