What is a target market?
A target market or target audience is a group of people who are engaged in your area of business or whom you wish to sell to or interact with. For example, a website dedicated to sports would aim to attract an audience that includes those interested in that sport. This is usually determined in the early stages of your business or product development, by asking questions like ‘who is this going to appeal to?’ and ‘who do I want it to appeal to?’
Why is it important?
Targeting a certain type of person or demographic can help you save time and money on advertising campaigns that are more likely to be successful through adapted keywords and SEO strategies.
By doing this, you’ll also be able to find out what strategies will work best for each group so it’s easier for them to become customers at different stages in their life cycle because they are used to the way you speak, what your company stands for, how you solve problems and their needs – therefore encouraging consistency and continuity.
Overall, it helps you know who your audience is and how they like to be marketed to, how much they will pay for a product, and it helps you plan advertising strategies.
Types of target markets
Demographics range from age, gender, education level, and income – to needs, aspirations, and problems/concerns. Understanding what your target market wants will allow you to strategically develop content that appeals to them.
A demographic is a group of people with certain characteristics, such as age, gender, race, and ethnicity. Demographics can also include individual social groups like a family or a community.
Psychographic refers to the psychological profile of an individual. It is a way to identify and understand people’s attitudes, values, beliefs, interests, and lifestyles. Psychographics are often used in marketing and advertising, as well as in market research to determine how a product or service will fit into their lifestyle.
Geographic segmentation refers to the geological area of the group, such as state, city, or country. This is used to ensure marketing material is specific to an area and aligns with what is popular or relevant for that location.
How to define your target market
Target audience analysis is the process of identifying your target market. Segmenting your population into smaller groups is useful to define your target customer, and take note of primary and secondary target markets – while recognising some may be niche markets.
Analyse your product or service
It is important to analyse your product or service before marketing it. This will give you insight into what problems your product or service solves that the market is looking for and determine how to successfully harness this to increase sales and expand that client base.
Analyse current consumers
Another way is by surveying current customers about what they like about your company, how they use your products, and how they found you. You should also ask them about their needs, as these can help you identify the type of customer that will be most receptive to a product or service that you offer. By understanding who your current market is, you will be more likely to produce high-quality products and services that meet their needs and direct marketing efforts towards them. This will in turn increase the likelihood of having a successful marketing strategy.
While assessing your local market, you might identify underserved areas which could be valuable information if franchising or adding a new location.
Analyse competitor markets
Marketing strategies often focus on the competitors of a given market. This is because it helps to understand how to create content that will be more appealing and engaging for the target audience.
It is important to be aware of your competitor’s market because it provides insight into what needs they may have that you can try to better address with your marketing plan. It also gives you an idea of how well you are doing in terms of market share and you can find out what strategies are already effective in your niche.
To build your strategy, research what types of posts they make and who their influencers are. Then identify which social media platforms have an already established audience base with similar interests as yours, such as Instagram or Facebook. Finally, tailor your content towards this existing target audience knowing that they’re already interested in the niche.
Review your analysis
Review your analysis to ensure the market being targeted is aligned with the business and its ideal audience. Following its execution, review the target market strategy again to see if the message is resonating with the target market. If it’s not, find out why and how you can adjust your strategy accordingly.
Overall, target markets are important for a number of reasons. They allow you to develop marketing strategies that can reach your target audience and make them more likely to purchase from you. Since it is difficult for one company, or even one marketer, to advertise in every possible location, selecting a target market allows you to focus on what will give the most benefit.