How to Define and Analyze Your Target Market

What is a target market?

A target market is a group of consumers or firms most possible to buy a company’s products or services. Because those buyers or customers are likely to want or need a business’s offerings, it makes the most sense for your business to aim its marketing efforts on reaching them. Marketing to these buyers or customers is the most effective and well-organised approach.

1. How to identify your target market

Determining your target market isn’t as easy as guessing who your customers are, or hoping for a certain demographic. It needs an in-depth review of your products and services, the marketplace, your potential or customers, and many more.

2. Conduct market research

Analyzing your target market is something which is more than understanding your customers. You also have to understand the marketplace where your business is. Analytics tools example Alexa, and Google Trends give you an overall view of the idea by identifying and showing you your market competitors, helping you find new customers, and enabling you to determine ways to improve.

Some of the most helpful data and information can come from both existing and potential customers. Tools like surveys focus groups, and in-person discussions can help you understand and analyse your target market requirement, why they shop from you or why they don't shop from you, and what you can do to make your offerings and attract customers.

3. Create customer profiles and market segments

Market segmentation is the method of organizing a group based on various categories, like data, information demographics and psychographics.

Choose specific demographics to target. Make a catology not only who has a need for your product or service, but also who is most possible to buy it. Demographics covers the more detailed information about the following factors:

Age
Location
Gender
Income level
Education level
Marital or family status
Occupation
Ethnic background

Psychographics are the more personal characteristics of a person, offer a deeper look into who people

Personality
Attitudes
Values
Interests/hobbies
Lifestyles
Behaviour
Determine how your product or service will fit and be useful in your target's lifestyle.
How and when will your target audience use the product or service?
What features are most appealing or attractive to your target audience?
Which media purposes does your target audience turn to for information?
Does your target audience read the newspaper, search online, or go to any particular events?

It’s important to consider both demographics and psychographics when your making to conduct a full analysis of your target market for your business.

4. Know your competition

Conduct a competitive analysis or use online tools to get a comprehensive view of the competitive landscape.

Whom are your competitors targeting?
Who are their current customers?
Don't go after the same market. You may find a market that they are overlooking for a long period.
What are your competition businesses that offer comparable products and services?
How much do they charge for the product or service?
What are they doing differently?
Do they have any particular product?

And in a small market where your competitors’ businesses are well established.

5. Analyze your product/service

Write out a list of each feature of your product or service which your business will offer.
Next to each feature, list the benefits it offers (and the benefits of those benefits).
Once you have your benefits listed out, make a list of customers who have a need that your benefit fulfils.

6. How to use your target market analysis

Once you’ve completed your analysis characteristics, now use the data to work.

Here are some ways to use the target market analysis data to grow and improve your business.

Product development: you identify some new things in the market, you can use this information to create better products and services that your target market needs.

Niche markets: Instead of going after the same customers as your competitors, explore untapped markets and some new target audience.

Marketing strategy: Use what you know to determine what media you should be using to communicate with your customers and whenever you think about implementing something new, whether it’s a social media strategy or a promotional campaign, check your analysis to see it will work or no.

Expansion opportunities: While you know your local market, you might identify underserved areas where you can add up your business easily. This is valuable information if you’re thinking of opening franchising or adding a new location in your business.

Pricing strategy: Once you know your competition, you might have found out that you’re either pricing yourself out of the market or not charging enough. Use comparative data to determine a fair price and it can be beneficial for business finance.

7. Evaluate your decision

Once you've decided on a target market keep this question on your list

Are there enough people who fit your business criteria?
Will your target really benefit from your product/service?
Can they afford your product/service?
Can you reach them with media support?
Are they easily accessible?
Don't break down your target too far! Have patience, you can have more than one niche market.

Now "How you will find all this information?"

Try searching online for research others have done on your aiming target. Search for magazine articles and blogs that are the same as your target market. Search for blogs and forums where the audience in your target market communicate their opinions. Search for survey results, or consider conducting a survey of your own by asking your current customers for feedback or try the survey game for a new audience.