Entrepreneurs and small business owners may have the brightest business idea, but if they fail to identify their target market and their target audience they have set up their business venture for disaster. A distinct target market is the number one element to a successful marketing strategy.
WHAT IS TARGET MARKET?
It is analyzing a business sales market with the ability to identify who will be most interested in the product and/or service it is offering… and why? It is segmented market whose interests are focused on the product and/or service a business is selling.
3 REQUIREMENTS FOR DEFINING YOUR TARGET MARKET
Research: Look at the demographics and geographic positing of the market you are selling too. Explore their social status: their age, family size, education level, jobs they are holding, what area they live in, can they afford your product or services?
Segment Your Market: Based on your research divide your market and filter your data based on market interest and income status. You may find that a segment of your target market can afford to buy your offerings at full price; while you may also find another segment of your market that is interested in your offerings , but can only afford to buy it at a discounted price.
Know Your Customer Base: Connect with your customers regularly and occasionally survey their need for what you are selling. As your business grows, your client needs and social status may change. Build a system that will keep your client base information up-to-date. Your current clients already have an interest in your product/service and after all word of mouth will help you acquire new clients or even potential clients that are interested to follow your business.
WHAT IS TARGET AUDIENCE?
Based on its target market a business can then identify the group of people that may be interested to get their promotions and advertising material, or they may even be at the ready stage to buy a product! That group of people can vary in terms of age, occupation, geographic location, family status, or income, but the only factor that makes that group the target audience is that they are identified as having developed an interest in your product/service.
3 REQUIREMENTS FOR DEFINING YOUR TARGET AUDIENCE
Knowledge of target market: The more you know about your target market the easier it is to identify your target audience. If, for example, your target market are Women of high positions in the workplace; then to identify the audience it will help to know their management ranking. Are they part of Senior management or are they in Junior management? Are they involved in a decision making process or do they just transfer recommendations through the company hierarchy, etc…
Surroundings matter: When the target market gets outlined it is also important to consider its surroundings. If women of high positions that make decisions in the workplace is the target market, then the target audience will be these women along with anyone in their social and professional circles: their subordinates, coworkers, direct reports, husband, partner, kids and family members, fitness club friends, etc….
Purpose is Key: Define the purpose for providing your business offerings. Is the purpose behind your product/service to enhance beauty? Or is it to facilitate logistics? Is it to develop your customer team? Or is it a food item that your clients or family members maybe interested in?
Knowing the target market and knowing the purpose behind providing that specific product and/or service will definitely help the business define its target audience and stay focused on the needs of whom they are selling to. A distinct target audience is definitely the number one element of a successful sales strategy.
Do you know your target market? And are you aware of who your target audience are?