Running a business is no walk in the park. It involves a lot of things – from item procurement, hiring manpower, and marketing and promotions.
As a business owner, you should also come up with a sound marketing plan. This will ensure your business’ profitability and sustainability. After all, business owners would want their businesses to last for many years to come.
Your business will have at least one competitor offering similar products or services. That is why competition in the world of business can be very aggressive.
Every business should work hard if they want to be better than their competitors. You might even have to spend a fortune on marketing and promotions.
But before that, you need to determine who your target market is. Your target market depends on the products or services you are selling. The truth about finding your target market is this: not everyone is your target market.
How to determine your target market
For starters, it is important to identify your target market. Basically, your target market will make or break your business. Obviously, your business will not thrive if you have no customers – a.k.a. your target market.
Identifying your target market depends on the type of business you have. People, also known as your target customers, is part of the 7P’s of marketing. However, a lot of businesses can be broad.
One example is the shoe industry. We all know there are different kinds of shoes: sneakers, loafers, high heels… and all other types of shoes you can think of. Everyone needs shoes, but not everyone wears high heels. Not everyone likes wearing basketball shoes, either.
This is where determining your target market comes in. First of all, you need to know who they are, their buying behavior, interests, and location. Your brand should also live up to your mission-vision and business goals. Make it clear that your brand will be there to serve your target market’s needs.
Social media can also help you get to know your target market. Social media platforms use analytics and research in identifying a brand’s target customers.
Even your competitors can give you an idea of who your target market is. That is why in business, you need to be constantly updated with the latest market trends. Likewise, you should be updated with your competitor’s ongoing campaigns and promotions.
Gauge whether your competitor’s marketing efforts are paying off. Find out why your competitor’s promotional efforts seem to be working. Is it a discount? The free gift for every purchase of an item? Whatever it is, it will give you an idea of what kinds of promos will work for your target customers.
Learning more about your current customers
If your business has been around for some time, this doesn’t mean you will just leave it right there. The world of business and its trends continue to evolve from time to time. Your current customers may not be the same ones you have back then. Some may have even already shifted to your competitor.
At that point, you need to ask yourself what makes your customers loyal to your business. Why some of your customers did jump ship into the other brand? How often do your customers avail products and services from your business?
In other words, you need to take care of your present customers as well. From there, you will have an idea of your business’ strengths and weaknesses. It is also an opportunity to improve specific areas in your business so you can serve your customers better.
Benefits of identifying your target market properly
As a business owner, one of your main goals is to earn from your business. However, it should not only be about business. You should also consider your target customers and how you can satisfy their needs and wants.
That is why it is important to get to know who your target market is. Not only can it benefit your customers but also your business. Among the reasons why you should spend time and effort in identifying your target market include the following.
It can peak a shared interest in your target market
Your target market most likely shares the same interests, demographics, and buying behavior. This means your promotional efforts will most likely be widely-accepted by them.
This also means you won’t have a hard time knowing what kinds of promotions that will appeal to your target audience. At the same time, target marketing can encourage brand loyalty.
It can strengthen your competitive advantage
Target marketing can also put you at an advantage over your competitors. Knowing your target market means you can think of a better business plan. You will also be able to react swiftly to ever-changing business trends.
Business is not only about earning millions of dollars. You should also know which kinds of customers you should target. At the end of the day, your customers deserve the best products and services that they can get.