How to Define and Analyze Your Target Market
How to Define and Analyze Your Target Market. To best serve your customers, you have to know who they are. Of course, not everyone who buys your products or services fits the same profile, but as a company you should have a core customer base in mind.
Not only does it help you streamline your product offerings, it also allows you to give those customers the best possible experience.
What is a target market
Another way to describe your core customer base is your target market. These are the people you think are the most suited to your products and services, so it’s essential that you understand them.
Understanding your target market is different from just making assumptions about it. Instead, it’s about really trying to figure out its needs and motivations. Demographics such as age, gender, education level, occupation, and family situation can help you determine what your customers need and what they’re willing to spend.
Beyond this, you should also consider who your customers are as people. What do they value? What is their lifestyle? What do they enjoy doing with their spare time? The answers to these questions can help you understand your target market on a deeper level.
How to identify your target market
Determining your target market isn’t as simple as guessing who your customers are, or hoping for a certain demographic. Instead, it requires an in-depth review of your products and services, the marketplace, your potential (or current) customers, and more.
Here are some tactics to help you identify your target market:
Analyze your offerings
Ask yourself what problems your products and services solve, and, in turn, to whom they appeal. For example, if you operate a landscaping business, your services would be attractive to homeowners with lawns and, more specifically, people who are too busy to care for their yard and can afford to pay someone to do it.
So, your target market would include higher-income adults with demanding jobs and/or children, who don’t have time for or interest in lawn care but still want it to look good.
Conduct market research
Analyzing your target market goes beyond understanding your customers — you also have to understand the marketplace. Analytics tools like Quantcast, Alexa, and Google Trends give you a comprehensive view of the landscape by identifying and assessing competitors, helping you find new customers, and enabling you to determine ways to improve.
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