Understanding the type of target market

Do you have a great idea? No matter how amazing it is, it’s not enough for you to believe it. As an entrepreneur, you can plan for success by understanding your product’s target market.

What is the purpose of a target market? How can knowing your target market help you avoid mistakes? Here’s a crash course to help you understand the type of business target market.

What is a target market?

Simply put, your business’s target market is the group of people who are most likely to buy what you’re selling. People are your target market, and as a unit they will have some things in common. Think about who the “typical customer” would be for your business. Consider this person:

  • Gender: Are your customers male or female?
  • Age: Are they college-age? middle age? Golden years?
  • Income Level: Do they have a lot of disposable income or too little?

A target market includes other factors, such as race, parental status, marital status, education, and occupation.

Knowing your target market can help your business clearly explain why it exists. Many businesses solve a problem or fill a need that customers didn’t know they had. Here are some examples you probably know:

  • Amazon Fresh, DoorDash and Hello Fresh provide grocery essentials with time-saving convenience.
  • Life Alert provides peace of mind for senior citizens who need medical assistance.
  • 1-800-Flowers solves a problem for men on Valentine’s Day: the need to give a wife or girlfriend a romantic gift.

What is a target market objective?

Knowing your target market can help you avoid wasting money on ineffective marketing campaigns. This can help you understand the needs and desires of your customers and even make changes to your product if needed.

For example, if your customers are college-aged men, it would be unwise to use a marketing campaign aimed at women in their 40s. Alternatively, if your product is in a price range that only affluent consumers can afford, it would be pointless to market to people who have little or no disposable income.

Knowing your target market can help you know how to reach the people most likely to buy your product. Having a solid understanding of who your customers are can even help you in other aspects of the business, such as designing your store or deciding how to promote products.

Demographic segmentation

Demographic segmentation is an attempt to understand your market at a deeper level. For example, you can conduct market research to find out how your product is perceived sex: Do men and women view your product the same way? or using its demographics age: Is your product viewed favorably among millennials and boomers?

You can use family structure as a demographic. Do married families with children view your product as favorably as single families without children? Here are some ways you can segment your potential customers into different demographics to find out how favorable your idea is. And, at whom to target your idea.

Geographical division

Do you want to expand your business beyond your local area? Do you want to go global? If so, it is important to know that different regions of the country and different regions of the world may require different marketing strategies. What may be strange or unusual in one part of the world may be customary and normal in another.

For example, in your area, it may be common and common for people to drive to work every day. So, you decide to show ads that show people driving to work every day. But, your ad will miss the mark if you show it in places where people don’t have cars. And, where driving is the exception rather than the rule. Knowing your customers’ culture is essential.

This rule of knowing culture extends to other geographic differences. This includes spoken languages, foods that are considered normal, and even dominant religions. All of these things can affect how your product is received by the public.

Psychographic segmentation

Do your thoughts and personal beliefs affect how you shop? Psychographic segmentation attempts to answer questions of customer beliefs and values.

Consider how beliefs and values ​​can affect your business:

  • Holidays can vary and many are rooted in religious traditions. These holidays can greatly affect how and when people spend money.
  • Some people eat meat and animal products. Others do not.
  • The perception of how a company is treating its employees or the environment can be very important to some consumers.

How these issues are perceived by a consumer can give insight into their values, beliefs and preferences. Companies specializing in grade A red meat do not try to target vegetarian customers. Similarly, companies that identify themselves as green, environmentally friendly, or sustainable know that their values ​​are part of the calling card that appeals to customers with those values.

Behavioral market segmentation

Behavioral market segmentation is a technique that divides a market into different groups based on consumer behavior. This means the focus here is on their buying patterns, product usage and other behaviors related to their decision making process.

Unlike psychographic segmentation, behavioral segmentation focuses more on actions rather than thoughts and beliefs. Such market segmentation is a way to identify and understand the needs, preferences and motivations of different customer groups.

This approach allows businesses to tailor their marketing efforts and product offerings to the specific needs and interests of each segment. This can increase potential sales and customer loyalty. By segmenting markets based on behavior, companies can create more effective marketing campaigns that resonate with their target customers.

Pharmographic market segmentation

Firmographic market segmentation is a technique that focuses on dividing groups based on company or organization characteristics. By segmenting markets based on firmographics, companies can more effectively target their marketing efforts and products to meet the specific needs and interests of each segment.

For example, a company that sells office supplies might segment its market by company size, targeting small businesses with different messaging and product offerings than it would use for large corporations.

Some common factors used in pharmagraphic segmentation are:

  • Type of trade
  • Company size (number of employees)
  • location
  • Job Titles
  • Institutional structure
  • Annual income

Firmographic segmentation can help companies identify which market segments offer the greatest potential for growth and profitability. Also, it helps companies allocate their marketing resources and sales efforts more effectively.

Conclusion

Coming up with a new idea can be exciting. It is essential that customers believe in your product to make the process profitable. Understanding target market types will help you identify the people who most want or need what you’re selling.

Erin Shelby on Twitter
Erin Shelby

Team Writer: Erin Shelby is a writer and blogger based in Ohio. Follow her on Twitter @ByErinShelby

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Article Tags:

Business Opportunities · Featured · Find Your Way · Grow Your Business · Marketing · Sales

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Find Your Way · Grow Your Business · Marketing · Sales · Your Mindset

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