3 Key Steps to Identify a Profitable Target Market.
Identifying your target market goes beyond simple demographic and geographic data. To truly identify your target market means understanding the motivations behind their purchasing behaviors. It means speaking with them rather than to them in their language. It’s about building a relationship. In order to do that you must :
1. Evaluate what do you have to offer:
One way of deciding on the right markets to pursue is to think about your company and your business.
- Do you have particular areas of expertise?
- Do you have unique knowledge or product of a specific geographical area?
- Are you better at getting on with certain types of people?
- Do you see an opportunity of your USP to be ahead of your competition?
2. THINK about your market.
An easy place to start is by identifying the different segments among your existing customers and by looking for groups with similar characteristics. You may also try to survey your existing customers for a deeper understanding. Third party research and government conducted research studies are also good sources.
3. Understand the Problem you solve.
Today we live in the world of many options and for the most part convenience of choice. That’s why the web is fantastic at delivering personalised products and services, cutting out many of the distribution challenges that previously existed. Once you truly understand your target market then you can begin to solve their problems. Sometimes your customers are motivated by external factors ( lack of money, pressure from superiors, etc.) and others times they may be motivated by internal factors ( self-ambition, notoriety, philanthropy, etc.)
In the past identifying your target market was simply an issue of segmenting them by age, gender and geography. With today’s niche sources, it’s no longer enough. Today you have the power to engage with you audience on a much deeper level but like all relationships, it’s going to take work.