strategies to identify your customers
A target market is a well-defined group of customers to which the company wants to sell its end products to, it is a consumer’s market that most likely to buy a company’s products or services. It is necessary step in the development of a marketing plan, as it makes the most sense for the company to focus its marketing efforts on reaching them. It makes the promotion, pricing, and distribution of your products and/or services easier and more cost-effective.
Resist the temptation to target large market in the hopes of getting a larger slice of the market. That’s like firing 10 bullets in random directions instead of aiming for center of the mark – is inefficient and expensive.
You can follow the following steps to define a target market for your business.
Think about what problems your product or service solves.
If you want people to buy your product or service, you need to make sure it will it solve some kind of problem for them.
Who is most likely to have this problem?
In what situations do they use it? This is where you start breaking down who you should be focusing on. Is it individuals? Businesses? Families?
Analyze Your Competitors’ Customer Market
Analyze your competitors’ customer Market: Who they targeting with their marketing efforts?
You need to think how you can differentiate yourself from them.
Choose specific demographics segment to target.
Important demographic information may include:
- Education level
- Marital status
- Racial/Ethnic background
Find the psychographics segment of your target.
Important psychographic information may include Personality
- Technology preference
Search for Geographic Segmentation of your target audience
It involves segmenting the market based on location. This include:
- area code
- postal/zip code