It's a client's collective to which your product or brand is destined for. Is defined as a group of people that was obtained by taking into consideration the demographic characteristics, needs and interests that they have. THey are the ideal users of your products/services and sales. It's defined by the industry and has characteristics and needs that can be used to develop a communication and sales strategy.
The value of target market
Understanding your potential market will give you two important concepts: To know which target market plans are more practical for your product or service and establish who your target clients will be.
Your target client is a group of people that present a bigger number of possibilities to acquire our product, for example:
If our target market are people that use stationery products, our target group could be a person between 12 and 16 years old that is currently studying.
Target market features
You can consider a big and open group of people or a small and specific one.
The target audience has to have similar characteristics, for example: location, socioeconomic level, gender and age.
Consumer habits are patterns and trends that our clients follow to acquire a product. When you look for clients with similar characteristics it will be easier to offer a product or service.
IAB´s México study: “The mexican consumer: a new omnichannel journey” revealed that the pandemic created significant changes in the consumer. Now companies want to generate an omni channel relationship with the buyers in which they interact with them virtually and physically, it's important to take it on account when creating our strategies.
Link with the product .
Buyer personas are fictional profiles that we create by joining all the features that our ideal buyer would have. To create them you can take into consideration your qualitative and quantitative research. It's vital that your buyer Persona has a connection with your service or product.
Needs and problems.
The pain points are the situations that generate a negative feeling to the consumer/ user/ buyer when interacting with the product or service. The target audience shares the pains that your product or service can solve.
Collect information to obtain a good target market
This is the process´s key point to define your target market. Collecting information can be obtained through two different research methods: qualitative and quantitative. This information will help you know your target audience and determine what kind of people match your ideas or the business concept you are creating.
Target market types
There's 4 types of target market.
When we analyze this type of target market we understand that the ideal consumers are located in a pre established geographic range, such as: a country, a state or a city.
This is a point to take into consideration in the local companies because it is necessary to establish their values, interests and priorities. These can change drastically depending on the region we focus on. It's essential to have the technology to reach the desired geographic market and to know how to take advantage of that scope.
Aside from your company's distinctive features, your clients´ socioeconomic level goals are essential to define your target market. For example: In a wholesale store the goal probably is to attract the medium socioeconomic level, on the other side a company that sells designer clothes would probably be looking forward to attract a higher socioeconomic level.
Gender and age.
A lot of shops establish their market based on the person's gender and age they have directed their product for. For example: a business devoted to sports articles could be focussed on men, whereas a hair care products store could focus on women.
Likewise businesses undertake the task of sending a message to various groups with specific age ranges such as: teenagers, kids or retirees.
The way people live is also a target market type. It's very common that companies act based on this strategy to direct their message according to people´s psychographic criteria. Likewise basic things about people such as their entertainment, particular things they like or interests become the fundamental base of this target market.
How to define your target market
Identify your business competitive advantage
Do this process right and you´ll get your target market defined automatically: :
What trouble are you solving?
What need do you please?
What desires are you fulfilling?
Therefore you don't need to explain what you sell. For example: Instead of saying ”We sell coffee from Oaxaca´s Mountain range”, you can define what you clients receive with your product:”Take the purest coffee to your table, selected by our farmers manually and delight yourself with the sweet note of Oaxaca´s mountain range”.
When you already clearly established the benefits of what you sell, it should be easier to establish who needs your products or services.
Limit your target market
In this part of the analysis you should already know who´s your product directed to. Starting from this point, we have to establish the target market that we are planning to reach.
We have to be very specific in this aspect. First we have to define our target market´s demographic. Then we have to identify the psychography of the people that's gonna benefit from our services.
Be very objective
This part may be the most complicated of your target market selection process.
People can remember, investigate and develop information to accommodate and confirm their hypothesis or their pre established beliefs. This is a very common mistake, especially in the companies that research without executing real trials/ testing.
Evaluate your target market
When you already have the knowledge about who you are going to sell to, you should research if it's worth reaching out to them.
Making these simple questions:
Does this target market have enough people to make our business profitable?
Does this target market have the resources to acquire our service?
Will our client's purchases be constant or do we need to look for new clients every so often?
Is the competition strong?
If it is, Which are the differences from the competitor? and Why would the clients choose you?
Once you understand all of the things we mentioned, you have to work to notice the kind of people that can find your products useful. Keep in mind that the only way to know who to direct the attention is to do real testing and avoid the biased thoughts that can harm the final solution we offer through our products/ services as well as the sales opportunities we may get.