Learning to Identify your target market is more essential than ever. In light of the current financial environment, no one has the resources to target everyone. Targeting a specific market can help small businesses compete with larger corporations.

Defining a target market doesn’t mean you exclude everyone else. It means that you are focusing your funds and resources on reaching customers who are more likely to purchase your product. When done right, target marketing can make reaching new customers easier and less expensive.

For example, a landscaping company located in Westport, Massachusetts could target homeowners between the ages of 42 and 76 with an annual income of more than $100,000 per year. To get more specific, the business could target people who live in a specific neighborhood.

This can make it easier to decide where and how to promote your business when you have a clear idea of who your target customer is. The following advice will help you identify your target market.

Analyze your current customers?

Who are they, and why do they choose to purchase from you? Look for similarities and common interests that they may share. Which ones generate the most revenue? Your product or service might have a significant impact on the lives of other individuals in a similar situation.

Consider your competitors.

Which customers are your competitors targeting? Who are their current clients? The goal isn’t to try to compete with them. The goal is to find what we in the industry call blue oceans. By studying your competition, it is possible that you may find an entire market that is currently being overlooked.

Analyze your product or service.

Jot down a list of your most popular products or services. List the advantages of each one. For example, a residential cleaning business offers carpet stain removal. The advantage is that they not only offer your typical carpet cleaning, but also stain removal.

Once you’ve outlined your advantages, make a list of people who can benefit from them. A cleaning business like the example above might choose to target households with younger children or pets in the house. They wouldn’t turn away someone who might need window cleaning, but they understand that households with children and pets are more likely to need their services. Taking this into account can help you Identify your target market.

Determine your demographics.

Make a list of the people who are most likely to purchase your product or service, not just those who need it. It is important to take into consideration the following:

• Location
• Gender
• Income
• Age
• Education
• Occupation

Take into consideration the needs of your intended audience and how your product or service may help meet those needs. Ask yourself the following:

• When and how will your target market make use of the product or service?
• Is it possible to pinpoint the traits that are most attractive to your target audience?
• What sources of information does your target consume?
• Do they read the newspaper, use the internet, or go to certain events? If so, what are their habits?

Taking these questions into account will help you better understand your target market and how to market to them.

Take marketability into consideration.

After you’ve settled on a target market, consider these questions:

• Do enough people meet my customer criteria?
• Is my product or service going to help my target audience?
• Will my target market perceive value in my product or service?
• Do I understand how my target market makes purchasing decisions?
• Can they afford what I’m offering?
• Can I get through to them with my message?

Be careful not to break down your market too much. Remember, you can have multiple target markets. You may want to think about tailoring your marketing message to each of your target markets separately.

Where can I find info on my target market?

• Do an internet search to see what other people have found out about your target market.
• Look for articles and blogs that are written for your intended market.
• Look for forums where individuals in your target market express their views.
• Consider asking your current consumers for their thoughts and suggestions.

This is the most difficult part. The more you know about your audience, the simpler it is to figure out which medium to use to communicate with them and which marketing message to convey. If you don’t want to send direct mail to everyone in your ZIP code, you can target only those who meet your requirements. By identifying your target group, you can save money and obtain a higher return on your investment.

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