“Who is your target market?” You’d be surprised how many business owners can’t clearly answer that question.
But determining your target market is one of the most important parts of running any business. If you haven’t identified your target market, you can waste a lot of time and energy trying to attract and convert people who simply aren’t interested in you or your product. Here’s what you need to do to narrow down your target audience and start making money.
Conduct an informal market analysis.
You need to know the primary market environment in which you’re competing; this basic knowledge can give you preliminary information on your target audience. This research can be done using the Internet. From this analysis, you can better narrow down your target by interest, demographic and common trends. In your analysis, be sure to answer these important questions:
- Who is your target audience?
- Where is your target audience located?
- What do they currently think about your brand?
- How will you attract them to your products or services?
- Who else is competing for their loyalty and devotion?
- Are you targeting business or consumer sectors?
Create a description of your target audience.
Make sure to include demographic information such as age and income level, but also psychographic information as well. The psychographic information is relevant when thinking about how to best market to this consumer base, particularly regarding what advertising vehicles work versus those that do not. Writing down these descriptors can then help you formulate a profile of your ideal consumer. In compiling this persona, you want to fill out as many details as possible regarding who your consumer is: what they care about and what they dislike. The more thorough, the better as you can readily have this person in mind when crafting your marketing strategy toward that segment.
Segment the audience into groups.
When narrowing down your target audience, you will have to segment your customers into groups. Therefore, you will want to create a persona for each segment. Flesh out each persona by giving this person a name and backstory. The more you make the persona come alive, the more invested you become in this group, and the more you begin to understand the motivations and attitudes of this segment of your market. A specific persona will come in handy when crafting your marketing strategy toward this segment later on.
Narrowing down your target market is essential if you want your business to be successful. The more specific you can be about who your customers are, the more readily you can create effective marketing strategies and products that will appeal to them and avoid wasting time and money. If you need help narrowing down your target audience, contact the DofM for help.