Although there’s a whole world out there, only a fraction of people actually needs your buy product or service. For businesses like you to find these consumers, they would need a proper target market direction in place. Otherwise, they would be spending money and wasting effort on reaching a disinterested audience.
A target market is a consumer stereotype. These are the people who share certain characteristics that make them more likely to buy a product. These factors may include their age, location, income, and lifestyle.
When target positioning for marketing, know your clients well enough to be your best friend. Make a clear definition of the type of person the business would appeal to. What are the likes, dislikes, experiences, and values of the prospect? What kind of energy is needed to appeal to them? Only then could you start targeting your search campaign.
What’s the use of having a Target Market?
Performing customer segmentation helps businesses have a rough idea of where your potential customers would be and how to target them. You will have a grasp of what promotional materials to release and who your majority of interested consumers are. It also enables them to know more about their customer needs and behaviors. This will later on be used to analyze the information over time to refine their strategies. The gathered data can also be used to transform business ideology and principles according to the changes in consumer demand. It may also help in finding inspirations for related products or services the customer set may want. Most importantly, it makes sales forecasting more predictable.
A target market is the cornerstone of these five crucial business research activities: the feasibility study, market research, SWOT analysis, business plan, and marketing.
The Five Essentials
It is best to narrow down your customer search to the very specifics. Here are some guidelines to help you get a rough idea of who you will be dealing with.
Product/Service Quality Analysis: Identifying Exactly Why Customers Love Your Product
Without a product or service, there are no customers. This is the main thing that you are selling. The brand comes after. Just so, it is just as important to pinpoint why your customers choose your products or services.
Gauging the pros and cons of your product helps you discern what the unique selling point (USP) of your product is to those outside your business. It also helps you find key areas to improve on and what features to retain. Having an open dialogue with customers about why they chose your product will help your business know the reasons why they buy it over other similar products.
Market Research: Knowing Your Current Customer Base
If you are already an established business, you don’t need to look further than to observe who is standing in front of you, or rather your store, whether it is virtual or physical. Create an open community by asking for feedback and suggestions. Your current customer base will help you find others like them. Recognizing loyal customers and reaching out to them over social media develops a great customer relationship and garners a priceless database of word-of-mouth referrals.
You may be surprised by who your business appeals to compared to what you initially had in mind. For those starting out, find an open source collection of human behavioral studies and research websites such as Pew Research Center to know more about who your business might attract. You could also try doing your own feasibility research to know who would be interested in your virtual and local communities. Here’s a guide by Inc. magazine on how to conduct a market research to help you get started.
Market Segmentation: Understanding How Customers Think and Behave
The market is divided into four main categories:
- Geographic – Addresses, Location, Climate, Region.
- Demographic/socioeconomic segmentation – Gender, age, wage, career, education.
- Psychographic – Attitudes, values, religion, and lifestyles.
- Behavioral segmentation – (occasions, degree of loyalty)
Market segmentation enables businesses to identify their market’s purchasing potential and perform a competitor and comparative analysis to meet customer satisfaction. It has been used by businesses since the first industrial revolution when mass production became possible. The main use of customer segmentation is for businesses to gain a competitive advantage over its competitors by securing a portion of the general target market.
Competitor Analysis: Learning from Competitors
Who knows how to market your product better than your competitors? Chances are, they have also done their own research and reverse analyzing their content strategies may help you have more marketing ideas to test out. What are they doing that you haven’t been able to catch on? When a competitor has already established a strong influence over a certain customer segment, it helps you narrow your search by removing them from your potential customer list. Alternatively, it could also inform you of what challenges you will be facing and how aggressive your marketing campaigns should be, should you choose to compete. This exercise could also help you unlock an untapped consumer niche other competitors have overlooked.
Market Trends: Staying Updated on the Latest Consumer Habits
As we reach the 22nd Century, the largest consumer generation is transitioning to the next generation. Millennials have very different consumer habits than these young Gen Z-ers. For one thing, they are less brand-conscious and more willing to buy from Instagram pop-up shops instead of established physical stores. They are also more fickle than millennials when it comes to staying with brands that have had a glitch in their customer service experience. They have more money than millennials and Gen X-ers but they are also less materialistic and more conscious about how friendly their stuff is to the planet.
These changes add-on challenges to marketers but also gives them more opportunities to work on their company image and ideals. There are other external factors, such as technology development and political instability, which could affect your business but keeping an eye out for your customer demands will help you stay up-to-date with all these factors.
Anderson Group BPO, Inc offers social media management services which could help you reach your target market and retain positive brand sentiments. Once you have identified who your customers are and optimized your marketing efforts to reach them, you need to be prepared for the influx of sales with a reliable customer support team. We have ready services for chat, email, calls, and social media.
Need consultancy on creating better experiences for your customers? Give us a call!