What Is a Target Market?
A target market is defined as a specific group of potential buyers for which a business positions its products and services. Or in simpler terms, it’s the group of people who are the most likely buyers of your products or services.
Understanding Your Target Market
Too many new small and home-based business owners don’t take the time to define their target market, which means they waste time and money as they seek clients and customers. Some home-based business owners define their target market as “everyone,” but, in reality, ideal buyers have specific traits, characteristics, and situations that your product or service can specifically speak to. Knowing your target market allows you to place your marketing messages where your market hangs out, using words and enticements that specifically speak to their needs. For example, if you’re a virtual assistant that works with Realtors, you could run an ad in your local paper that serves a million people. There is a possibility that a million people will see the ad, but most of them won’t need a virtual assistant, and if they did, their mindset isn’t on hiring a VA when they read the local news. However, if you placed an ad in the local Realtor Association newsletter, your audience would be smaller, but they’re all in your market and are open to real estate news and resources.
Segment a Market
Segmenting your market is basically breaking down the market into further smaller groups. For example, if your target market is moms who want to lose weight, segments of the market might include working moms, stay-at-home moms, or moms living in large cities. Four common segmentation types include: To segment potential customers into a target market, you need to answer the following questions:
How old is your ideal customer?How much money do they make?Is your product or service most suitable for men, women or children?Are they homeowners?Where does your target market shop?Where do they live?What type of education do they have?What problems, needs, or wants do they have that your product or service will fill?
Tailored Marketing
The better you understand and know your ideal buyer, the more effective your marketing efforts will be. You’ll know where to find your ideal customer, so you can get your business information in front of them. Casting too wide of a net diminishes the concentration of your message. You’ll be able to create messaging in the form of copywriting that will attract customers. You’ll be able to speak directly to their needs and offer a solution. It is possible that you’ll have several markets, and in fact, targeting various aspects of different segments can ward off losing business if one segment stops being viable. But it is essential that you market to each group specifically. For example, many groups (i.e., new mothers, middle-aged mothers, and women with health issues) want to lose weight. But not all want to lose weight for the same reasons (i.e., lose the baby weight, look attractive again, improve health). Marketing to a new mother about losing weight to avoid diabetes won’t generate the same results as marketing to her about reaching her pre-pregnancy weight.
Target Market for Business Planning
Having a well-defined target market is essential in the planning and research phase of your business, as well. Consider these five areas of business planning where an appropriate target market is the cornerstone of the research: Think about the marketing messages you respond to, whether it’s on a website, television or a direct marketing piece in your mailbox. Which ones do you stop and read, and which do you ignore? Which ones have you seeking more information or even making a purchase? Odds are, the marketing messages you respond to speak directly to you and your needs. Do the same with your product or service.
