Your business may offer different products and services to appeal to the demands of the masses, but now everyone will like what’s being offered in the market. As a business owner, it is your duty to find people who not only want your products and services but are also willing to make purchases. This is where the issue of the target market comes in.
A target market is a specific group of potential buyers for which a business positions its products and services. It is a group of people who are most likely going to buy your products and services.
Understanding your target market
It is important to have a clear understanding of your target market. Too many new and home-based business owners do not take time to define their target market. This translates to wasted time and money as they seek clients and their customers. Some business owners make the mistake of defining the target market as anyone, in reality, the ideal buyers have specific traits and characteristics, which fit the products and services being sold.
It is very important to know your target market. When you have this understanding, you will better equipped to place your marketing message in places where your market hangs out and using words that capture their attention. If you place your advertisements and messages to the wrong target, it will lead to a lot of wasted time and resources, especially marketing dollars. You will end up getting frustrated as you try to change things, which otherwise would not even work.
Segmenting a market
Segmenting a market involves breaking down the market into smaller groups. Take an example you have a market of moms who want to lose weight. You may segment the market into different groups such as; stay-at-home moms, moms living in the city, among others.
There are four common ways of segmenting a market.
– Geographical segmentation based on location such as states, cities, and street addresses
– Demographic segmentation that is focused on features such as gender, race, and age
– Behavioral segmentation that is focused on benefits customers receive and how they use particular products and services
– Psychological segmentation looks into attributes that relate to personality, attitudes, values, lifestyle, interests among others.
To be able to segment a market in the right manner, there are a couple of key questions you should be able to answer. These include questions such as;
– How old is your ideal customer?
– How much money do they make?
– Is your product or service most suited for men, women, or children?
– Are they homeowners?
– What type of education do they have?
Tailoring your marketing
The better you have an understanding of your ideal buyer, the more effective your marketing efforts will be. You will know where to find your ideal customers so that you can get your information in front of them. Additionally, you will be able to create messaging that attracts your customers. You stand a better chance to speak directly to their needs and present solutions that really solve their issues.