Is your business struggling to identify exactly who you should be marketing to? With so many mediums of promotion and communication, your customers aren't always one-size-fits-most. Understanding your target audience is the first step to helping your organization improve ROI, increase sales and influence brand loyalty.
What is a target market?
A target market is the group of individuals who are likely to purchase the products or services you offer and are more likely to become repeat customers. Identifying the target market best suited for your business and brand is crucial because it allows you to direct your resources to a specific group of customers that will influence sales growth and brand loyalty.
DETERMINING YOUR TARGET MARKET
Understanding your target market is important to determine which customers hold the highest profit potential. It allows you as a brand to connect with your audience in a way that makes them feel prioritized. It’s important to ask yourself questions, like “who will benefit the most?” and “who’s going to be touching this product?”, making it easier to understand your ideal customer. Now, you may ask yourself, “how do I identify my target market?”. Here are some tips to guide you along the way.
Narrow your target audience
It is important to determine what you want to prioritize through your marketing approaches. Determine what needs your product fulfills and who is likely to use your products. Consider factors, such as age, location, buying power, and lifestyle, to determine which generation(s) of people your product/service appeals to.
Emphasizing primary value propositions is important to determine who is likely influenced by the values your product or service has to offer. By recognizing the core values of your product, you can draw connections to the demographic groups that prioritize these values, and who would likely benefit from what you have to offer.
Obtain Data
Being able to choose the right target market starts with drawing conclusions from objective data. One way to do this is by gathering survey data to identify potential markets. Conducting surveys either via email or newsletters will help you gather demographic data that correlates with your product or service.
Does another business offer a product or service similar to yours? By drawing from existing competitor data, you can determine which demographics are already interacting with the types of products similar to yours on the market. You want to build your own knowledge on the specific types of target customers that exist, which can be achieved through basic market research.
At the end of the day, your goal is to make connections between your target demographic group(s) and the product or service you have to offer. It is crucial that you keep an open mind and draw on different perspectives as you continue to build your marketing efforts. This will help you not only identify your target market, but also maximize your ROI.
Looking to develop a marketing strategy to help elevate your business in 2022? H&C Inc. is here to help. Contact us today!