Researching your target market might seem a boring and ominous task, but it could be hugely beneficial to your business.
You’ve defined your business name, logo and a possible strapline, now you need to work out who your audience is.
Identifying a target market helps you develop an effective marketing strategy. It assists you to create a specific message that your market will identify with.
Why would you work so hard to create a great business name, design a spectacular logo, invest your time, money and effort into marketing to the wrong person in the wrong country? It doesn’t make good business sense.
e.g. If I have an online retail business that ships plus size garments to women in the UK only, why would I spend the time and money on advertising to men and children in the United Kingdom? So you need to focus your efforts to the most likely person or business to purchase your product/service.
Researching your ideal target, below I give a little list on what to look for:
- Demographic: age, gender, income, education, ethnicity, family size
- Geographic: region, city, neighborhood
- Psychographic: Social class, lifestyle, personality, values, life stage
- Behaviouristic: buying pattern, consumption, loyalty, attitude
Not all of the above will apply to every business.
So in layman’s terms: I am selling retail merchandise to plus size women and the style suits ages between 25-50, they have a strong image they want to uphold, they are professionals, but like to keep fit and have an active lifestyle. They commute on trains to a town or city and read a certain type of magazine. They earn at least £35k per year and are in a management position at work.
Now by having this information does not mean that I won’t sell my retail merchandise to a 24-year old that works on the outskirts of a city, or that uses a car and not a train, all this means is that I can focus my main efforts on the top tier of the target market.
If I then have an increased marketing budget I can expand my target audience. Thus changing the way I may advertise.
Remember, you cannot reach every single person, so by concentrating on the niche target market, you will be able to focus your message with minimum effort.