{"id":447,"date":"2017-02-01T04:43:41","date_gmt":"2017-02-01T04:43:41","guid":{"rendered":"https:\/\/www.golaserengraving.com\/blog\/?p=447"},"modified":"2022-05-15T11:22:37","modified_gmt":"2022-05-15T08:22:37","slug":"identify-understand-target-market","status":"publish","type":"post","link":"https:\/\/www.golaserengraving.com\/blog\/identify-understand-target-market\/","title":{"rendered":"Target Market \u2013 How to Identify and Understand your Target Market"},"content":{"rendered":"

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\"targetUnderstanding your\u00a0<\/span>target market<\/span><\/strong>\u00a0is a prerequisite to your business success. You cannot sell to everyone. And not everyone around you is a potential buyer. That is why you must concentrate on the people to whom you will introduce it after developing your product. It\u2019s a challenging area for most businesses. Though many companies choose to advertise generally to the masses, spending your time, energy and resources on a target market (specific people) is more effective in maximising your return on investment (ROI).<\/span><\/p>\n

Let me use this example. When we started a laser engraving business, we began making rubber stamps. We offered two stamp brands:\u00a0<\/span>Brother pre-inked stamps<\/span><\/a>\u00a0and Shiny\u00a0<\/span>self-inking stamps<\/span><\/a>. We discovered that schools, banks, hospitals, churches, non-governmental organisations, and local governments made up our target market. Most small private businesses preferred buying stamps from veranda stamp makers, and we didn\u2019t focus on them. We learned where to find the people we wanted to target, how to market to them, and when.\u00a0<\/span><\/p>\n

The time you spend understanding your target market helps you not to market indiscriminately. Why? It\u2019s because you know a specific group of people to target. It leads you to spend your resources cost-effectively and maximise your ROI.<\/p>\n

How Do You Then Identify Your Target Market?<\/h2>\n

This aspect is vital and the first consideration you should make in your marketing plans. Most people are not sure of where to begin. We have, therefore, written this article to teach you how to identify your\u00a0<\/span>target demand<\/span><\/strong>.<\/span><\/p>\n

#1 – Prioritise Your Target Market!<\/h3>\n

Prioritising is one of the essential aspects of identifying your target customers<\/a>. Since you cannot sell to everyone, spend some time focusing on that group of people that are likely to buy from you. How do you do it?<\/p>\n

First, Identify Why One Would Want to Buy Your Product or Service!<\/h3>\n

Here you ask yourself who is most likely to use your product. The focus should be on the benefits one gets from using your product or service. Think benefits derived from using the product you offer to answer why one would buy from you. For instance, our\u00a0<\/span>wood bags<\/span><\/a>\u00a0are laser-cut from wood with nylon string. These are mere features. The benefits to the customers are looking unique and elegant. They motivate whoever wants to buy our laser-cut wood bags.<\/span><\/p>\n

\"features

Features and Benefits<\/p><\/div>\n

As you look for answers, focus on age, buying power (propensity to buy), interests, education level, race, religion, marital status and geographical location. Using the above example of wood bags, we target modern working women with a reasonable income in urban places.<\/p>\n

Secondly, Sieve Your Target Market<\/h3>\n

For instance, ask yourself who can buy wood bags. Using the gender filter, you can realise that it\u2019s significantly ladies. OK, you now know that ladies are your\u00a0<\/span>target customers<\/span><\/strong>. Continue sieving using the age filter. What could be the age range of the potential women buyers of these wood bags? Then, use the income level filter to sieve further! What could be the income level of these ladies? You finally arrive at a more focused target market as you sieve through the filters. You can also test it with different filter combinations.<\/span><\/p>\n

Thirdly, Segment Your Market<\/h3>\n

Segmenting your market means breaking down your broader market into smaller segments with similar characteristics. For instance, clients of our wood bags are particularly ladies. OK, some of these ladies purchase our bags to give as gifts to their valued friends, while others buy them for personal use. But we also have married men who buy them for their sweethearts. There are also business people who buy them to resell them for a profit. We now have three segments with different characteristics.<\/p>\n

What does it mean? It means targeting each segment with different marketing strategies because every section has varying wants and needs. Secondly, it enables us to customise our wood bags depending on the diverse needs of each group. Thirdly, our marketing budget is more likely to be cost-effective because we spend our resources, time and energy promoting one type of customer (target market segment). Does that make sense to you?<\/p>\n

#2 – Obtain Data for Your Target Market!<\/h3>\n
\"survey

Survey Data Analysis<\/p><\/div>\n

Getting data is another challenging area for most people. But it should not be taken to be complicated. From the above information, if you take the trouble to do it right, probably you already have good knowledge of your\u00a0<\/span>target market<\/span><\/strong>. What you need to do is to have it backed up with evidence by obtaining data. You can do this in several ways:<\/span><\/p>\n

Do a Survey<\/h3>\n

You can choose to do it yourself or hire a marketing firm to gather data. Whichever way you want, questionnaires are inevitable. It\u2019s, therefore, crucial that the questions you set to bring out in your survey find out about your target demand.<\/p>\n

If you choose to do it yourself, you can distribute your survey through personal visits, email your lists, post on your blog, promote online using survey programs like Survey Monkey, and post on your social media networks.<\/p>\n

Draw From an Existing Data<\/h3>\n

This aspect works best if your product or service is similar to those already on the market. You can do this in two ways: making an observation<\/span>\u00a0and finding out online<\/span>.<\/p>\n

Making an observation is not difficult. For example, if you want to open a restaurant but already a few are in the area, spend some time at one, two, or three. While there, take note of the type of food each customer orders, age, ethnicity and gender. Take note of the favourite food and the busiest period of the day.<\/p>\n

Finding out online requires you to search the web for information about the type of customers that purchase a product similar to yours.<\/p>\n

Look to Your Already Established Networks<\/h3>\n

You can get data from your friends, business colleagues, family members, existing customers and acquaintances. Ask them direct questions. Would you buy this product? Do you know someone who could need it? Note their feedback. You can also give them samples to try out.<\/p>\n

Identifying your target market is crucial and the key to success in your business. If you are a success-oriented business person, you should reserve some time and resources to research your target market. But do you know what to find out about them?<\/p>\n

Here Are 11 Key Issues to\u00a0Research<\/a>\u00a0about your Target Market<\/h3>\n

♦ \u00a0Your Target Market’s Demographic Profile<\/h4>\n

This profile includes finding out about their gender, age, income, education and employment. If your target market comprises companies, you should consider the type of industry and the number of employees. This information helps you know the kind of people or companies that do business with you.<\/p>\n

♦ \u00a0Interest and Habits<\/h4>\n

What do they like and dislike? Secondly, what are their habits? Find out what your target market’s interests are and how they behave. It will help you know what motivates them and how their changing patterns can affect your business.<\/p>\n

♦ \u00a0Where Your Target Market Goes to Find Products or Services Like Yours<\/h4>\n

Which other businesses in your niche have products or services similar to what you offer? With this information, you will be able to know who your competitors are and think about what to do to remain in business.<\/p>\n

♦ \u00a0Important Aspects<\/h4>\n

Things that your target market\u00a0takes to be important when buying products or services like yours. How do they perceive you and your business? And how do\u00a0they describe you and your business?<\/p>\n

♦ \u00a0What They Are Comfortable Paying<\/h4>\n

What is the price you charge? And what is the quality of your products? Does your target market feel concerned or unconcerned about paying the price you charge?<\/p>\n

♦ \u00a0What Their Characters Are<\/h4>\n

You need to find out about the issues related to the character of the individuals with whom you do business and find out about their strengths, weaknesses, personality and many others.<\/p>\n

♦ The Location<\/span><\/h4>\n

As a businessman, you should know where your customers originate. For instance, from which regions do they come? Why? How do you reach them, or how do they get to your business and buy from you?<\/span><\/p>\n

♦ \u00a0How They Go About Purchasing the Products or Services You Offer<\/h4>\n

Do they buy the first time they visit your store, or do they take time to buy? Are they easily motivated? How enthusiastic are they?<\/p>\n

♦ \u00a0Where Your Target Market Goes to Find Solutions Like Yours<\/h4>\n

Which people\u2019s problems are you solving? And which other businesses are currently addressing the same issue? How can you position yourself to do business with your target market? Secondly, how can you convert your customers\u2019 motivations into your products\u2019 characteristics?<\/p>\n

♦ \u00a0How They Like to Buy<\/h4>\n

How motivated are they? Do they have a strong desire to buy your product? How enthusiastic are they? This information helps you determine how to improve your sales.<\/p>\n

♦ \u00a0Impact of Your Special Offers<\/h4>\n

What special offers do you have? How have they impacted your business? Do you see any positive change? What else can you offer to get better results?<\/p>\n

Conclusion<\/h4>\n

As I wind up, the success of your business depends on your ability to sell as many products as you can afford. Selling requires marketing skills. You can never sell your product to everyone. Therefore, it\u2019s essential to focus first on identifying your\u00a0<\/span>target market<\/span><\/strong>.<\/span><\/p>\n

Then find out about your target customers, their evolving problems, interests and habits! Know what happens on the market that may influence them! Find out how to get to your target customers. Always think about finding out more and more about your target market.<\/p>\n

What else? Share your views!<\/p>\n

[\/et_pb_text][\/et_pb_column][\/et_pb_row][\/et_pb_section]<\/p>\n<\/span>","protected":false},"excerpt":{"rendered":"

Understanding your\u00a0target market\u00a0is a prerequisite to your business success. You cannot sell to everyone. And not everyone around you is a potential buyer. That is why you must concentrate on the people to whom you will introduce it after developing your product. It\u2019s a challenging area for most businesses. Though many companies choose to advertise […]<\/p>\n","protected":false},"author":1,"featured_media":32523,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_et_pb_use_builder":"on","_et_pb_old_content":"[caption id=\"attachment_448\" align=\"alignright\" width=\"353\"]\"target Target Market[\/caption]

Understanding your target market<\/strong> is a prerequisite to your business success. You cannot sell to everyone. And not everyone around you is a potential buyer. It's why, after developing your product, you need to focus on the people to whom to introduce it. It\u2019s a challenging area for most businesses. Though many companies choose to advertise generally to the masses, spending your time, energy and resources on a target market (specific people) is more effective in maximising your return on investment (ROI).<\/p>

Let me use this example. When we started a laser engraving business, we began by making rubber stamps. We offered two stamp brands: Brother pre-inked stamps<\/a> and Shiny self-inking stamps<\/a>. We noticed that our target market mostly comprised of schools, banks, hospitals, churches, NGOs and local governments. Most small private businesses preferred buying stamps from veranda stamp makers, and we didn\u2019t focus on\u00a0them. By knowing the people to target, we got to know where to find them, how to market to them and when.<\/p>

The time you spend in understanding your target market helps you not to market indiscriminately. Why? It\u2019s because you know a specific group of people to target. It leads you to spend your resources cost-effectively and maximise your ROI.<\/p>

How Do You Then Identify Your Target Market?<\/h2>

This aspect is vital, and the first consideration you should make in your marketing plans. Most people are not sure of where to begin. It's why we have come up with this article to help you\u00a0learn how to identify your\u00a0target market<\/strong>.<\/p>

#1 - Prioritize Your Target Market!<\/h3>

Prioritising is one of the essential aspects of identifying your target customers<\/a>. Since you cannot sell to everyone, spend some time focusing on that group of people that are likely to buy from you. How do you do it?<\/p>

First, Identify Why One Would Want to Buy Your Product or Service!<\/h3>

Here you ask yourself who is most likely to use your product. The focus should be on the benefits one gets from using your product or service. Think benefits derived from using the product you offer to answer why one would buy from you. For instance, our wood bags<\/a> are laser-cut from wood with nylon string. These are mere features. The benefits to the customers are looking unique and elegant<\/span>. It\u2019s these benefits that motivate whoever wants to buy our laser-cut wood bags.<\/p>[caption id=\"attachment_1259\" align=\"aligncenter\" width=\"612\"]\"Features Features and Benefits[\/caption]

As you look for answers, focus your mind on aspects like age, buying power (propensity to buy), interests, education level, race, religion, marital status and geographical location. Using the above example of wood bags, we target modern working women with a reasonable income in urban places.<\/p>

Secondly, Sieve Your Target Market<\/h3>

For instance, ask yourself who can buy wood bags. Using the gender filter, you can realise that it\u2019s mostly ladies. OK, you now know that ladies are your target customers<\/strong>. Continue sieving using the age filter. What could be the age range of the potential women buyers of these wood bags? Then, use the income level filter to sieve further! What could be the income level of these ladies? As you sieve through the filters, you finally arrive at a more focused target market. You can also test it with different filter combinations.<\/p>

Thirdly, Segment Your Market<\/h3>

Segmenting your market means that you break down your broader market into smaller segments with similar characteristics. For instance, clients of our wood bags are mostly ladies. OK, some of these ladies buy our bags for\u00a0giving them out as a gift to their valued friends while others for their personal use. But we also have married men, who buy them for their sweethearts. There are\u00a0also business people who buy them to resell them for a profit. We now have three segments with different characteristics.<\/p>

What does it mean? It means that we have to target each segment with different marketing strategies because every section has different wants and needs. Secondly, it enables us to customise our wood bags depending on the diverse needs of each group. Thirdly, our marketing budget is more likely to be cost-effective because we spend our resources, time and energy on promoting one type of customer (target market segment). Does that make sense to you?<\/p>

#2 - Obtain Data for Your Target Market!<\/h3>[caption id=\"attachment_1253\" align=\"aligncenter\" width=\"528\"]\"Survey Survey Data Analysis[\/caption]

Getting data is another challenging area for most people. But it should not be taken to be complicated. From the above information, if you take the trouble to do it rightly; probably you already have good knowledge of your target market<\/strong>. What you need to do is to have it backed up with evidence by obtaining data. You can do this in several ways:<\/p>

Do a Survey<\/h3>

You can choose to do it yourself or hire a marketing firm to gather data. Whichever way you want, questionnaires are inevitable. It\u2019s, therefore, crucial that the questions you set to bring out in your survey find out about your target market.<\/p>

If you choose to do it yourself, you can get your survey to people through personal visits, emailing to your lists, posting on your blog, promoting online using survey programs like Survey Monkey and posting on your social media networks.<\/p>

Draw From an Existing Data<\/h3>

This aspect works best if your product or service is similar to those already on the market. You can do this in two ways: making an observation<\/span>\u00a0and finding out online<\/span>.<\/p>

Making an observation is not difficult. For instance, if you intend to establish a restaurant but there are already other restaurants in the area, spend some good time at one, two or three of them. While there, take note of the type of food each customer orders, age, ethnicity and gender. Take note of the favourite food and the busiest period of the day.<\/p>

Finding out online requires you to search the web for information about the type of customers that purchase a product similar to yours.<\/p>

Look to Your Already Established Networks<\/h3>

You can get data from your friends, business colleagues, family members, existing customers and acquaintances. Ask them direct questions like \u201cWould you buy this product?\u201d or \u201cDo you know someone who could need this product?\u201d Take note of their feedback. You can also give them samples to try them out.<\/p>

Identifying your target market is so crucial, and the key to success in your business. If you are a success-oriented business person, you should reserve some time and resources to find out about your target market. But do you know what to find out about them?<\/p>

Here Are 11 Key Issues to\u00a0Research<\/a>\u00a0about your Target Market<\/h3>

\u2666 \u00a0Your Target Market's Demographic Profile<\/h4>

This profile includes finding out about their gender, age, income, education and employment. If your target market\u00a0comprises of companies, you should consider the type of industry and number of employees. This information is useful in knowing the kind of people or companies that do business with you.<\/p>

\u2666 \u00a0Interest and Habits<\/h4>

What do they like and dislike? Secondly, what are their habits? Find out what your target market's interests are and how they behave. It will help you to know what motivates them and how their changing patterns are likely to affect your business.<\/p>

\u2666 \u00a0Where Your Target Market Goes to Find Products or Services Like Yours<\/h4>

Which other businesses in your niche offer products or services similar to the ones you offer? With this information, you will be able to know who your competitors are and to think about what to do to remain in business.<\/p>

\u2666 \u00a0Important Aspects<\/h4>

Things that your target market\u00a0takes to be important when buying products or services like yours. How do they perceive you and your business? And how do\u00a0they describe you and your business?<\/p>

\u2666 \u00a0What They Are Comfortable Paying<\/h4>

How is the price you charge? And how is the quality of your products? Does your target market\u00a0feel concerned or unconcerned about paying the price you charge?<\/p>

\u2666 \u00a0What Their Characters Are<\/h4>

You need to find out about the issues related to the character of the individuals with whom you do business. Find out about their strengths, weaknesses, personality and many others.<\/p>

\u2666 \u00a0Location<\/h4>

As a businessman, you should know where your customers originate. For instance, from which regions do they come? Why? How do you reach them or how do they get to your business and buy from you?<\/p>

\u2666 \u00a0How They Go About Purchasing the Products or Services You Offer<\/h4>

Do they buy the first time they visit your store or do they take time to buy? Are they easily motivated? How enthusiastic are they?<\/p>

\u2666 \u00a0Where Your Target Market Goes to Find Solutions Like Yours<\/h4>

Which people\u2019s problems are you solving? And which other businesses are currently addressing the same issue? How can you position yourself to do business with your target market? Secondly, how can you convert your customers\u2019 motivations into your products\u2019 characteristics?<\/p>

\u2666 \u00a0How They Like to Buy<\/h4>

How motivated are they? Do they have a strong desire to buy your product? How enthusiastic are they? This information is useful to determine how you can improve sales of your product or service.<\/p>

\u2666 \u00a0Impact of Your Special Offers<\/h4>

What special offers do you have? How have they impacted your business? Do you see any positive change? What else can you offer to get better results?<\/p>

Conclusion<\/h4>

As I wind up, the success of your\u00a0business depends on your\u00a0ability to sell as many products as you\u00a0can afford. Selling requires marketing skills. You can never sell your product to everyone. It's the reason why it\u2019s essential to focus first on identifying your target market<\/strong>.<\/p>

Then find out about your target customers, their evolving problems, their interests and their habits! Know what happens on the market that may influence them! Find out how to get to your target customers. Always think about finding out more and more about your target market.<\/p>

What else? Share your views with us!<\/p>","_et_gb_content_width":"","footnotes":""},"categories":[7],"tags":[18],"class_list":["post-447","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business-marketing","tag-business-success"],"yoast_head":"\nTarget Market \u2013 How to Identify and Understand your Target Market!<\/title>\n<meta name=\"description\" content=\"Identifying your target market and finding out about it is a key ingredient to your business success. How do you identify your target market?\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.golaserengraving.com\/blog\/identify-understand-target-market\/\" \/>\n<meta property=\"og:locale\" content=\"en_GB\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Target Market \u2013 How to Identify and Understand your Target Market!\" \/>\n<meta property=\"og:description\" content=\"Identifying your target market and finding out about it is a key ingredient to your business success. 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