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.
It is a group of customers to whom your product or brand is intended. It is defined as a group of people that is obtained taking into account the demographic characteristics, needs and interests that they have, these people are the ideal recipient of your products / services and offers.
It is defined by the industry, has characteristics or needs that can be used to develop a communication and sales strategy.
Importance of the target market
Understanding your potential market will give you two very important concepts: knowing which target market plans are most practical for your product or service and establishing who your target customers will be.
Your target customer is that group of people who have the greatest number of possibilities to acquire our product or our service, for example:
If our target market is people who consume stationery products, a target audience could be people between the ages of 12 and 16 who are currently studying.
Target market characteristics
It is considered a large and open group of people or a very small and specific one.
The target audience must have characteristics in common, for example: location, socioeconomic level, gender and age.
Consumer habits are the patterns and trends that customers follow to purchase a product. Looking for customers with similar characteristics will make it easier to offer your product or service.
The IAB Mexico study: "The Mexican consumer: A new Omnichannel Journey" revealed that the pandemic generated significant changes in consumption, now companies seek to generate an omnichannel relationship with buyers in which they interact both virtually and physically, it is It is important to take this into account when creating our strategies.
Link with the product.
The "buyer personas" are fictitious profiles that we create by uniting all the characteristics of our ideal buyer and to create them you can base yourself on qualitative and quantitative data from your research. It is vital that your buyer persona have a connection to your service or product.
Problems and needs.
Pain points are situations that generate a negative feeling for the consumer/user/buyer when interacting with a product or service. The target audience can share ailments that your service or product can solve.
Gathering information for a good target market
This is the key point of the process to define your target market. The collection of information can be done through two research methods: qualitative and quantitative. This will help you to know your target audience and determine what kind of people match the ideals or the concept of the business you want to start.
Target Market Types
When we analyze this type of target market, we understand that the ideal consumers come together in an already defined geographic range. As would a nation, a state or a city.
Since this is a point to take into account for local companies, it is necessary to establish values, interests and priorities, as they tend to change drastically depending on the region in which we focus. It is essential to have the technology to reach the desired geographic market and know how to take advantage of that reach.
#2 Income level
Apart from the distinctive features of your company, the economic level of your target customers is essential to define a target market. An example: In a wholesale store, the goal is probably to capture the budget mid-level range; on the other hand, a company that is dedicated to selling designer clothes will probably seek higher economic power.
#3 Gender and age.
Many businesses establish their market based on the gender or age to which the product is directed. We give an example, a business dedicated to the sale of sporting goods could be more focused on men; while a hair care store might target women.
Likewise, businesses are given the task of sending their message to various groups in specific age ranges, such as: adolescents, infants or people who are retired.
The way people live is also a type of target market, it is very common for companies to act based on this strategy to direct their message according to people's psychographic criteria. Likewise, basic things about people such as their entertainment, things they like in particular or interests become the fundamental basis of this type of target market.
How to define our target market
Distinguish the competitive advantage of your business
Carry out this process properly and the answer to your target market will be given automatically:
- What difficulty do you solve?
- What need do you satisfy
- What wishes do you fulfill?
Therefore it is not necessary to explain what you sell, an example: "Sale of coffee from the mountains of Oaxaca". Instead, you can define what your customers will receive with your product: "Bring the purest and most select coffee to your table by the hands of our farmers and delight yourself with the sweet notes of the Oaxaca mountains."
Once the benefits of what you sell are clearly established, it should be easier for you to establish who needs your services or products.
Limit your target market
In this part of the analysis you should already know who your product is aimed at, starting from this point we must establish the target market we plan to reach.
We must be quite specific in this aspect, first we must define our target market demographics. Then we have to identify the psychographics of the people who are going to benefit from our services.
This part may be the most complicated part of your target market selection process.
People can recall, investigate, and develop information in such a way that it confirms their hypotheses or established beliefs. This is a more common mistake than it seems, especially within companies that do research without running actual tests.
Evaluate your target market
With the knowledge about who you plan to sell to, you should investigate whether it is worth reaching your target market.
Now let's ask ourselves a few simple questions:
- Are there enough people in our target market to make our business profitable?
- Are there enough people in our target market to make our business profitable?
Do you have the resources in this target market segment to acquire our service?
- Would our customers' purchases be constant or would we have to look for new ones from time to time?
- Is the competition strong?
- If so, what are the differences with the competitor, and why would customers choose you?
Once we understand everything mentioned, we must work to realize what kind of people our products can be most useful for. Likewise, keep in mind that the only way to know who you are going to address is by carrying out real tests and avoiding prejudices that may harm the final solution that we offer through our products/services, as well as our sales opportunities.