5 Steps To Identify And Narrow Down Your Target Market
- Carry out a holistic analysis of your product/ service
Every product/service solves a potential problem or addresses a certain consumer need and hence you need to put down all the product attributes and characteristics that make the life of a consumer easy. Track down the ripple effect that your product/service creates and then decide who all will possibly fall under your target customer category. Once you know the probability of which customer suffers from the problem your product/service addresses you will devise your marketing strategy accordingly.
- Who is most likely to use your product?
Once you know what your product is designed for and the needs it addresses, it automatically follows that you start considering the demographics and psychographics for instance which defines your target market. You need to know the age bracket your audience lies in, their purchasing power as it highly determines their purchase decision, lifestyle, marital status and geographical location. Actually analyzing these factors will lead you to find ways to get through to the inbox of your ideal customer. A daughter of an elite class business and a self-made independent woman will have different needs and shopping patterns although they make like in the same age and education bracket.
Conduct your own primary research to learn about your target market. This means you need to send out personnel to make direct contact with the individuals you feel can be lucrative buyers in the future.
- Monetize on existing data
What are the market trends saying? Have you done your research on the market that already exists in the niche you are trying to target? Trust me; there is a whole lot of information and data easily available to help you gain an aerial view of the customers that comprise the type of customers that you are intending to penetrate. You can make your own efforts on your part by visiting local shops and observing the daily trend. Build up on your existing resources to tap into your industry, niche and target market. Making the best use of online sources and then approaching your target market online can be a viable option.
Another way of capitalizing on already existing data is drawing out effective conclusions from your database and keeping a track of the statistics that describe the nature of your target market and what consumer buying behavior do they pursue. Carry out surveys for the reason behind the purchase and enlighten yourself with the profiles of people who buy from you.
- Keep an eye on competitors
Competitors can sometimes become your driving force and lead you to become the market forerunner. The passion of outdoing another can make you go to any extent and more than that it keeps you aware of the risk factors in your surroundings and helps you identify what their strategies are so that you can effectively counter them. How have they positioned their product in the market? Are you offering market competitive pricing as compared to your competitor? What is the ‘word-of-mouth’ and social buzz about their brand which you can adopt? As your social presence can speak volumes about the productivity of the business and you can likewise make the most appropriate move. A satisfied and highly saturated market is not a very lucrative option to jump into. Whereas a market which seems unsatisfied with the existing sellers can be worth targeting.
- The perspectives keep changing
Keep in mind the dynamic global landscape which has made the corporate scenario quite volatile and subject to frequent change. Consumer behavior and buying patterns change usually due to a technological breakthrough or a lifestyle change which can alter the set of people who might be included in your target market. Always view your product/service in a different light so you can re-assess your target market and see if there are any possible amendments that can be made. Periodically reassess the market situation and mold your strategy accordingly.
Revamp your customer profile to stay abreast of the trends and ahead of the competition. As the marketplace undergoes evolution your clientele base also inevitably changes with it.