Understanding Your Target Market – How Important is It?

May 28, 2010 by  Filed under: Marketing 

As a businessman, regardless of the type of business your running, your purpose is to sell your product or services to your customers. Ideally this would mean selling to as many customers as possible. But the fact is that you can’t be all things to all people.

The most successful companies understand that their product or service will be considered by a limited number of people only. The more personal you are with this limited group of people the better prepared you will be to reach out to them. And that means being more accurate in your marketing, results in higher profit rate.

Having a firm knowledge of your target market is the key to a successful business. It is vital that you should know the who, what, where, when or how of your target market before spending those few precious dollars on aimless advertising and marketing. For example, advertising anything related to baby business, in a men’s magazine, is not only a BAD idea, but it also means you really need to do your homework!

So where to start? Well begin with the understanding of two very important things. First of all you must realize the fact that people buy a product or service in order to fulfill their needs or as a solution to their problems or to just feel good. Ask yourself: is your product or service capable of satisfying any of these needs. If yes, then highlight that category and do your marketing accordingly. Secondly, prove to be an expert in whatever you’re offering. Think like a customer, think what would make your product or service stand out and better than the others in market.

Next step is market segmentation; so what do you have to know about your target market? Anything and everything. After starting your research you would be thrilled to notice even the most trivial information does make a huge difference. Of course the most basic things to be aware of are – sex, age, income and location, but a more thorough research is needed i.e. market segmentation. It is the identification and categorization of different features of the target market, in order to have a clear understanding of the wants and needs of the prospect customers. There are four ways of identifying your target market:

Demographics: The age, gender, education, occupation, income, marital status, ethnic and/or religious background, family size and composition of your prospect customers.

Geographic factors: The location, size, population and climatic structure of the target area.

Psychographics: The Lifestyle, general personality, social class, behaviors, activities and interests, attitudes and beliefs, and loyalty characteristics of the prospect customers.

Customer needs and Behaviors: Their level of knowledge and means of information, their needs and wants, their usage and response to products of services and their opinions.

Make a market profile and keep on researching; yes, this is time consuming and a bit of effort is needed also but it has great significance in marketing. After you’re done with market segmentation, make a customer profile, which includes the focused details of the target market. Whenever you’re making new plans consult this profile. But you need to keep updating your research. Don´t fail to keep track of what’s new and happening around the town, otherwise your new products or services won´t see the same happy faces as before.

I am sure that equipped with all this information, you now have a better picture of your target market. A little effort put in studying your target market will enable you to clearly recognize what you should provide to your customers and enjoy success.

Keep an eye on that market

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