Business And Entrepreneurial Development Series 0.3:- Israel Olutomi
A great day to you.
Once again we are back again to take you through the Businesses and Entrepreneurial development series.
Today we would be considering the best methods to Identifying Your Target Market.
Unto every wants, needs and desire, there is someone out there to fulfill and meet those needs, also for every business theres someone out there willing to pay top Naira to have their needs and desire satisfied.
The major problem most startup companies and business have is having to define their target demographics. Most do not even know what need or desire their product is supposed to fulfill. Most cant ascertain if the product is for the High or middle class, is it targeted at the matured minded adult or Men and Women that love what they choose to wear and care how they present their image in public, or is it a line made exclusively for the fashion forward and bold young man and woman who is not afraid to stand out and break outside of the norm. All this must be decided before the product hits the street as this would be your number one selling point.
No matter how unique your product or services is, if you cant determine who the product and services is meant for then you are on the path to burning down your bridges that connect you to your goals and achievements.
How to Define your Target Market
To build a solid foundation for your business, you must first identify your typical customer and tailor your marketing pitch accordingly.
Given the current state of the economy, having a well-defined target market is more important than ever. No one can afford to target everyone. Small businesses can effectively compete with large companies by targeting a niche market. Many businesses say they target “anyone interested in my services.” Some say they target small-business owners, homeowners, or single moms. All of these targets are too general.
Targeting a specific market does not mean that you are excluding people who do not fit your criteria. Rather, target marketing allows you to focus your marketing cost and brand message on a specific market that is more likely to buy from you than other markets. This is a much more affordable, efficient, and effective way to reach potential clients and generate business.
With a clearly defined target audience, it is much easier to determine where and how to market your company. Here are some tips to help you define your target market:
– Look at your Current Customer Base
-Who are your current customers, and why do they buy from you? Look for common characteristics and interests. Which ones bring in the most business? It is very likely that other people like them could also benefit from your product/service.
Check out your Competition
Who are your competitors targeting? Who are their current customers? Don’t go after the same market. You may find a niche market that they are overlooking.
Analyze your Product/Service
Write out a list of each feature of your product or service. Next to each feature, list the benefits it provides (and the benefits of those benefits). For example, a graphic designer offers high-quality design services. The benefit is a professional company image. A professional image will attract more customers because they see the company as professional and trustworthy. So ultimately, the benefit of high-quality design is gaining more customers and making more money.
Once you have your benefits listed, make a list of people who have a need that your benefit fulfills.
Choose specific Demographics to target
Figure out not only who has a need for your product or service, but also who is most likely to buy it. Think about the following factors:
~Marital or family status
Consider the Psychographics of your target
Psychographics are the more personal characteristics of a person, including:
Determine how your product or service will fit into your target’s lifestyle. How and when will your target use the product? What features are most appealing to your target? What media does your target turn to for information? Does your target read the newspaper, search online, or attend particular events?
Evaluate your Decision
Once you’ve decided on a target market, be sure to consider these questions:
~Are there enough people who fit my criteria?
~Will my target really benefit from my product/service? Will they see a need for it?
~Do I understand what drives my target to make decisions?
~Can they afford my product/service?
~Can I reach them with my message? Are they easily accessible?
Don’t break down your target too far! Remember, you can have more than one niche market.
Defining your target market is the hard part. Once you know who you are targeting, it is much easier business to figure out which media you can use to reach them and what marketing messages will resonate with them.
Till I come your way again next week, stay blessed and have a fulfilled weekend.