Target market is the market consisted of specific groups of customers, or in other words target audiences or customer segments, to whom a product or service is aimed at. Businesses that have a good marketing strategy usually have a primary and a secondary market they target which are decided via lots of research regarding the different needs and wants of their potential customers. Identifying the right target market is crucial for a business’ success, especially if it’s still in its early stages, so asking the right questions is essential. Market segmentation is usually done by asking a variation of the following four simplified questions: who, where, why, and how.
Therefore, we’ll give you examples of how this is done by explaining what each of those questions mean. By doing that, you’ll know how to get precise responses from your customers and potential customers in order to identify your target market, so let’s begin.
Demographics: Who Needs and Would Use Your Product or Service?
Getting the demographics right may be the most important part of the process when identifying your target market. Demographics let you know who your customers are by categorizing them in groups based on their age, gender, education, ethnicity, and so on. What’s your age and gender? What’s your occupation and education level? What’s your yearly income? These are all relevant question that are supposed to answer the primary question that’ll help you create a more successful marketing strategy.
Finally, the answer to the primary question when it comes to demographics may look something like this: “Our primary target customer is a woman between 40 and 60 years, who has a family and works in the business sector, making higher than average income.”
Geographics: Where Are Your Customers From?
Where your target market lives is also important to know since by not having this information you wouldn’t be able to run ads for your product or service. If your target market is predominantly from Portland, Oregon and you run ads in the entire state or in every state of the USA, you can lose a lot of money. Knowing where the majority of your customers live is as important as getting your demographics right. That’s why you should ask questions like: “Where do you live?”, “Is it a small or big place?”, “Urban, suburban or rural?” and so on.
When you get your stats, you can conclude the geographics about your target market and it may sound something like this: “Our target market lives in suburban areas of a big city where the temperature is high in the summer and mild throughout the year”.
Psychographics: Why Your Customers Need/Buy Your Product/Service?
This is the part of identifying your target market where you need to determine your customers' psychological attributes. The psychological attributes of your target market may include your clients' interests, opinions, values, attitudes, and lifestyles. All those attributes will help you to answer the main question: “Why are your customers making the choice to buy your product?”
When you know why they want what you sell, then you’ll be able to easily answer many more questions such as how often they need that product, how much of it they'll buy at a given time, and so on. Many brands use loyalty cards where they’ll record what you buy, how much of it, when and how often, just so they can determine your interests and attitudes. Those loyalty cards determine not only parts of the psychographics but are more important in the next element of market targeting, which is the behavior of the customer.
Finally, when you know why your customers need and buy your products, you’ll get the psychographics of your target market. One example of what the final answer may look like is the following: “We believe that our clients are not only loyal but also what to do positive impact and help others. That’s why they'll continue buying toothbrushes from us since we donate one toothbrush with every single purchase they make. Also, doing the manufacturing locally makes them pick our brand, meaning they care about helping their community.”
Behaviors: How Your Customers Behave
Knowing how your customers behave can maximize your sales and increase conversion rates. That’s why it’s essential to ask certain questions when doing your research and understand their behavior. Loyalty cards are excellent when it comes to getting that information. You’ll know how often they buy your products, how much of them, why they need them, and so on. However, not every business can work with loyalty cards. Ask how they regard your service or product, how they regard the need they fulfill by buying your product, how they became informed about the products, etc.
From the behavioral information you’ll get from your customers, you’ll need to summarize it in a few sentences like in the following example: “Our customers appreciate the knowledgeable explanation what our product is made from and where our 10% donation money from the profit goes. They are not impulsive buyers, but most often they won’t research other products before buying our shoes. Most often they buy one pair of our shoes with a single purchase, and that happens once to twice a year”
Knowing your target market is a must for any business that is serious in maximizing their sales and making a profit or any kind of impact. Try selling any kind of meat (hamburger, bacon or chicken wings) to a vegan and then you’ll understand the value of making the research so you would know which group of customers are your target market. That’s why the time spent on getting precisely who would use your services or buy your products is a time well spent and beneficial to both you and your business.