7-steps-defining-target-market

 

The most effective way to ensure that your company stays at the forefront of its industry is to ensure you are tapped into the correct target audience. Defining your target market is no easy task that requires money, time, and a significant amount of effort for companies, both small and large. With the right tools, however, every business can find their niche audience.

Targeting Your Audience

Too often, businesses make the mistake of only targeting people that are interested in their business. However, this is hardly an effective way to intentionally reach a specific audience. To really help you understand how to define your target market, you need to explore seven tips commonly used in the business world.

1. Identify Your Customer Base

The first step in defining your target market is to understand what interests your current customers and identifying why they continue to support your company. As you review the numbers, you must be sure to pay attention to what type of customers generate the most business and what products and services they gravitate towards. This will help you understand how to better cater to your current customers as well as how to reach out to others like them.

2. Know Your Competition

You must make the time to thoroughly analyze your competition. While it may be distracting to spend too much time focusing on the competitors, it is important to know who else is competing for your business. Which companies are stealing customers away from you and why? Asking and answering this and similar questions will help you pinpoint where and how you should be reaching out to your audience.

3. Review Products and Services

As you look for ways to reach your target audience, it is incredibly important to review your business’ products and services. In order to understand how to entice new customers, it is imperative that you know all the ins and outs of the services that you are offering. That means knowing what you’re selling as well as knowing what the customer expects to receive. Similarly, you must understand what occurs in the aftermath of a customer’s purchase from your company. Are they happy with the product? Are they displeased with the customer service? Knowing where your company currently stands with its products and services will help you determine how to better market yourself to potential customers. This will allow you to easily figure out the types of people that would most benefit from your business.

4. Identify the Demographics of Potential Customers

This step in your marketing process requires you to reach out to your community and new customers. By thinking about varying factors like location, gender, education level, income level, age, marital status, ethnic background, and the like, you will be able to better identify the types of customers that may be more inclined to do business with your company.

5. Target Potential Demographics

In order to understand which demographics are more likely to turn to your company, we should use polls, trials, samples and other methods of market research. This will help you effectively determine whether or not your company is the best match for your chosen demographic,

6. Analyze the Psychographics

The psychographics of a potential consumer include the values, attitudes, personalities, hobbies, interest,s behavior and lifestyle of the person. This will allow you to determine when and how a potential customer uses your service or product, as well as which method of marketing is most effective on a person by person basis.

7. Make a Decision

All of the research in the world will be of no help if you can’t figure out how to use it. The last step in finding your target audience is making a decision on who you will reach out to. With the best data and analyses, you will be able to comfortably choose the correct demographic to market to. As you work on making a decision you must be sure that your audience can afford your company’s products and services. Additionally, you must determine if there is a need for your company among the chosen demographic as well as enough diversity among your products and services that the target audience doesn’t lose interest.

There is no secret formula to identifying a target audience. By following these seven steps, you will be able to use your resources to make the right decision. Keep in mind that you can always reach out to multiple markets, but you must make sure you do so after conducting the right research and spending time analyzing whether or not your company is the right fit for a chosen audience.

 

Phil Fisk – CEO/Digital Marketing Consultant – Coastline Marketing Group, Inc.