Target Market Definition Table of Contents
Target market definition: The target market is the end-users or people with some features which a company recognizes as prospective customers for their product. Identifying the target market helps a company in making the right decisions like; producing the right product, the right package, design, etc.
A target market can be classified by lifestyle, career, age, location, interest, etc.
The target market focuses on reaching out to potential customers that have the features and are interested in buying a particular product. So, for a company to attract a particular set of customers, the company will have to modify the product and the marketing strategy.
To create the target market, you have to have to know the people your product is meant for, check the need of the product, know your audience, etc.
Useo different marketing strategies for a particular set of customers which is important to gain new customers, expand your business, and grow your distribution network. Know your customers and their buying capacity in accordance with their region and income level.
Before targeting a particular audience, a company should pay attention to how the product attracts the target market which makes it stand out from other similar products.
It is important to have a clearly defined audience; with this small businesses can effectively compete with large businesses.
Targeting a particular market does not mean you are people who do not meet the requirement. It only means focusing on the audience that is most likely to buy from you. That is the more effective and affordable way of reaching out to prospective clients.
There are three processes involved in selecting a target market and they are:
Segmentation is the first stage for target marketing; it involves identifying your audience so as to make the right marketing decision. However, this will help businesses to use their marketing resources effectively and reach out to the right audience.
Once you are through with the segmentation process, the next step is to define your target audience; here you have to make sure your product meets the demand of your audience.
This involves the right strategy to present your product or services to the targeted audience.
However, with a well-defined audience, it is simple to know where to market your business. And below are 6 tips to help you define your target market.
The knowledge of your current customer is very important when trying to understand your target audience. Having a good knowledge of your audience will help you to know their interest, features, those that buy more from you, and why they patronize your business. There is every possibility that other people in their category will buy from you as well.
Understand your competitors, know their current customers, and find out the service they are not covering and build your business around that niche.
Detail out the characteristics of your product and service. On each characteristic, state the benefit the product offers. After that, list prospective customers that have needs that your benefit meets.
It is important to know those who need your product, but extremely important to know those that will most likely buy from you. The following factors will help you to determine that: Gender, age, education level, income level, occupation, marital status, etc.
Psychographics in market research is the grouping of people in line with their values, personality, attitudes, interest, lifestyles, and other psychological criteria.
Understand how your product will help your target’s lifestyle. How they’ll use your product, when they’ll use it, the most interesting features of your product to your target audience, and finally, how and where they source for information.
You can do this by knowing if there are enough people that fit your criteria. If your target audience will benefit from your product or service, know if you really understand what compels your target to make a decision, know if they can afford your product and how to reach out to them.
It is very hard to define your target market, but once you define and understand it and know the platform they use the most. It will be much easier for you to reach out to them and craft messages that resonate with them as well. So, instead of being generic with your marketing approach, you will only reach out to businesses or individuals who need your product or services.
Scroll down to read our indepth Ecommerce Platforms guide. What you should know, Ecommerce Platforms features, price plans and support. Pros and Cons of Ecommerce Platforms as a ecommerce, everything is explained below.
Shopify is a software company that specialises in ecommerce software for small to enterprise level businesses.
Shopify is listed as the best ecommerce software related to Ecommerce Platforms. Shopify was founded in 2006 in Ottawa, Canada and currently has over 6,124 employees registered on Linkedin.