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How to Identify Your Target Market
Identifying your target market is one of the most crucial steps you need to take when you're starting a business or launching new products and services. When you have a good handle on who your target customer is, you can not only create a product that suits their needs, you can also produce advertising and promotional copy to capture their interest and get them to buy. But how do you identify that target market?
Start with the problem
A good way to determine who is likely to become your customer is to clarify the problem that your product or service addresses. For example, you run a housecleaning service. The problem that you solve is doing cleaning for people who cannot or do not want to do these jobs themselves. Upper income families, families where both parents work, and older people who no longer have the ability to do their own housekeeping, are all potential customers for your services.
Define your customer’s characteristics
Listing out the characteristics of your typical customer is another good step towards identifying your target audience. These characteristics need not be personal ones; they can pertain to lifestyle, income, geographical location, hobbies, and many other things. For example, for a gardening service, one type of target customer are people who live in neighborhoods with well-manicured lawns, attractive plantings and colorful flowers around their homes.
The business could also target corporate clients who want their office surroundings landscaped. For a business that specialises in home security, the ideal customers may be in a residential area that has a high crime rate and in high-income residential areas. Women living alone who worry about safety may be another potential target for sales. Listing out these characteristics allows you to zero in on your target audience accurately.
What is your primary market?
Many products and services address the needs of a variety of people but they still have a primary audience. These are the people who:
- Gain the most benefits
- Have the greatest need for these services/products
- Have the ability to pay for them
- Buy the biggest quantity of them on a regular basis.
Knowing who makes up this primary audience should be your goal when you are trying to identify your target market. For example, for a bakery, the local consumer may be a recurring source of business, but the icing on the cake (forgive the pun) may be local restaurants who buy breads and desserts in quantity to serve to their customers.
If you’re starting out in business, be sure to check out our business start-up package for tips, tools and more.
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