The Target Market is the segment of the market that includes all groups of customers or organizations that are most likely to buy or use a company’s products and services. It is the desire from potential customers that will be the driving force for businesses to promote marketing campaigns. This can entice, attract and satisfy the need to turn them into regular and loyal customers. Obviously, a strategy that focuses on marketing to potential customers is much more effective and cost-effective than a generic approach to everyone.
What we should identify Target Market?
Many of us often assume that a good, quality product will be liked by everyone. But what is the truth? No matter how good the product is, it is only useful to a certain group of people. Instead of wasting time and money on a vague, generic customer base, we can devote our full potential to Target Market. Here below are some reasons:
Target Market is the best way to perfect products
As a manufacturer, you always want to improve your products/services to better meet customer needs. Once the Target Market is defined in detail, you can identify the specific needs and future of customers. From there, develop their products in that direction to satisfy the needs of customers, the product will constantly develop and improve.
Target Market makes it easier and more accurate to meet expectations
Target Market will help businesses bring a feasible result and meet the expectations of customers. This will bring the traders huge benefits.
- First, limit the situation that customers have unrealistic expectations with the product.
- Second, the business also owns a group of loyal customers. This is also an important goal of businesses.
Target Market helps increase advertising efficiency
Knowing potential customers well and grouping them into the target market makes advertising much easier. Get information about Target Market, i.e. understand customer behavior.
- Understand what they want?
- What are your buying habits like?
- What are they interested in?
And more importantly, what is the main factor that drives them to make a purchase decision?
With those search and research results, you can completely create an appropriate advertising message and easily leave an impression on the market. The importance of the Target Market is immense. It will determine the success or failure of the business. So how to determine what Target Market is?
6 Steps to determine Target Market for businesses
Step 1: Review the list of existing customers
What components does the existing customer include? And why would they choose to buy your product?
Look for common characteristics and interests among those guests and see which is the most profitable for the business?
From there, you can easily define many other goals similar to them, can also benefit from the product/service you provide.
Step 2: Check the competitor situation
Who is your opponent? What are their current customers? You should avoid going down the same path as your competitors, and instead look for a market they don’t expect.
Step 3: Analyze products/services
Make a feature list of each type of product or service you offer. Next to each feature, state the benefits it offers. Then, make a list of people whose benefits you can provide can meet their needs.
Step 4: Choose a specific demographic to target
Find out not only who has a need for your product or service, but also who is most likely to buy it.
Here is a list of demographic factors to keep in mind:
- Academic level
- Marital status, family
- Religious nation
Step 5: Consider the psychology of the target customer
Psychographics are more personal characteristics of a person, including:
- Life style
From there, determine how your products or services fit into the lifestyles of your target customers.
- How and when will they use the product?
- What features make the best impression on those guests?
- What communication channels do customers usually receive information from? Newspapers, online or certain events?
Step 6: Evaluate your decision
Once you’ve decided on your target market, consider the following questions to add some certainty to your decision:
- Are there enough people who match my criteria?
- Does the target customer really need my product/service?
- How to make target customers make purchasing decisions?
- Will the customer be able to pay for my product/service?
- Will my message get closer to the target customer?
There are many important tasks when you set up your business like choosing the right dropshipping agent, picking the right products, marketing strategies. And among them, choosing Target Market is always one of the most important steps to help you succeed in any business. Especially, for small businesses, choosing the right Target Market can help businesses effectively balance competition with large businesses. Hopefully, through this article, you have understood correctly what the Target Market is or what the target market is so that you can apply it correctly and effectively in your business.