When talking about the target market of a venture, it refers to the group of people who are potential buyers. Defining it in any business is of vital importance to design sales and communication strategies that do work.
Determine the Target market of a business is one of the first steps in creating a successful marketing strategy. If an entrepreneur does not give due importance to this process, he can face many problems to position his brand.
In the world of electronic commerce, the first thing that comes to people’s minds is that they can sell their products on social networks, in a marketplace or in their own online store; but this will not happen if they do not have defined the public they want to reach.
In this text I will explain the target market definitionbusiness relevance, how it’s selected, and examples to help you find the inspiration you need.
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What is the target market? Definition
The definition of the target market It is the group of people – also called consumers or potential clients – to whom a business wants to offer its products or services. In English it is known as target group either target market.
That easy? Yes, but before you want to stop reading, I must tell you that defining this segment can be a daunting task since it is the most important point in designing marketing strategies that do work.
Consumers who are part of this group share demographic characteristics, needs and interests and should not be confused with the target audience. In the Tiendanube blog you can learn about the differences and .
Importance of the target market
The importance of the target market is related to the success of a brand. If a business owner manages to define it correctly, he can know if his idea will become profitable or will stand out from other brands that seek to reach the same people.
By being clear about this concept, the instability that many ventures experience is reduced, since all communication and advertising efforts will be focused on the people who really want to buy.
Characteristics of the target market
The characteristics of the target market are:
- Size
- Interests
- demographic information
- Needs
- relationship with your product
Below I will explain more details of each point so that you can start defining your own target market.
1. Size
The first characteristic of the target market is to define its size. It does not matter if you identify a large or small group, the key is to be able to know it in its entirety to create messages that connect.
2. Interests
No consumer is the same as another, but they do share some interests and buying habits that you can use in your favor in your marketing strategy.
3. Demographic information
Gender, location, age, and socioeconomic status must be similar in a target market. By having this information you will be able to better understand what they need and are looking for in a product or service.
4. Needs
A target market not only has common interestsThey also have needs and problems that they seek to satisfy or solve when purchasing a product or consuming a service.
5. Relationship with your product
If you want to sell accessories for a smartphone, your buyer must have one. It is useless to have the best models if you talk to a person who does not have a cell phone or does not care about this type of product.
Type of target market
Not all target markets are the same. There are several types that you should take into account before working on yours, and they are the following:
- gender and age
- Lifestyle
- Socioeconomic level
Here is the explanation of each one.
1. Gender and age
East type of target market It is used to create organic and advertising messages focused on men or women of a certain age range. It is important to connect with them easily.
2. Lifestyle
This is one of the most used target market types by companies. Knowing the brands people buy, the places they frequent and their hobbies can make it easier to locate, say, a clothing store.
In addition, knowing all of the above, you can easily identify market niches that are little explored or have little competition.
3. Socioeconomic level
Identifying the socioeconomic level of people with the potential to buy from you helps you decide the price of your product or service. With this type of target market you will be able to know the consumer’s purchasing power.
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Once all these have been identified characteristics and types of target market that exist, it’s time to start working on yours. Here are some tips that will be of great help for this task.
How to define the target market of your business?
For define the target market of your business It is important to follow these steps:
- Know your product or service.
- Analyze your competition.
- Gathering information.
- Decide the criteria you will use to perform the segmentation.
- Rely on market research.
1. Know your product or service
It may be obvious, but many entrepreneurs don’t. If you do not know the characteristics of your product or service in depth, when a customer asks about it, you will not be able to convince him to make the purchase.
Always keep in mind the problem you want to solve with your brand, what needs it satisfies and how a person will benefit from consuming you. With this clear, communication will be simpler and more direct.
2. Analyze your competition
The benchmark It is very important to know what your competition is doing and how you can offer a better service for .
Thanks to social networks and it is easier to carry out this research. Take the time to analyze their posts, the browsing experience on the website and the way they communicate with users.
3. Information gathering
Undoubtedly, the most important point for define a target market is to collect information that is relevant to your business. You can rely on user surveys or satisfaction surveys, both will help you get to know your customers and start creating a strategy with this information.
In our resource center we have one that can be useful to land all the information collected.
4. Decide the criteria you will use to carry out the segmentation
This is the point where the types of target market that I explained to you earlier appear. The criteria that you can use to carry out this segmentation can be:
- Socioeconomic level
- age and gender
- Lifestyle
- hobbies
- Interests and needs
5. Lean on market research
Market research never stops. It does not matter if you have already become a recognized brand or have just defined your target market, consumers are constantly evolving and are increasingly demanding with businesses. By continuing to get to know them, you will be able to know if it is time to change your communication or make a new selection of the target market to expand.
Target market examples
I know you need inspiration for your business, so here I will share some examples of target markets from well-known brands that will help you define yours as a true expert.
- Manzana
- starbucks
- storecloud
1. Apple
The Apple’s target market It is clear: people who love technology and who are looking for gadgets to facilitate their daily tasks at home and at work.
By offering an ecosystem in which their consumers can have control of all their documents, photos and even their home, they have managed to sell smartphones, tablets, computers, speakers and even gadgets to have a smart television.
2. Starbucks
The location of the Starbucks coffee shops is not a fluke. They, in their market research in each country, know where their consumers are located and what areas they frequent.
They have diverse target markets, but the clients that most coincide in each place are people between 25 and 40 years old with a good income, lovers of technology to make purchases and who are looking for a space where they can work, talk with friends or even drink. a meeting.
3.
The Tiendanube target market is made up of entrepreneurs looking to sell online easily and simply with their own .
With our technology we facilitate the creation of an e-commerce without the need for advanced technical knowledge and to make available to anyone a platform with tools to send, accept any type of payment and even sell on social networks. All this for only $99 MXN per month and with a .
Knowing the target market of your business will help you stop thinking that your products are for everyone and that anyone can buy them. With this, your marketing strategies will give you better results, you will better focus your efforts and you will be able to sell more online.
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