The most important factor in determining the success of the business is “sales”. In order to build a strong foundation for your business and increase sales, it is important to identify who you are selling to? From pin to paper, whatever you sell, you need to underst and your customer, their needs, what part of their need will your product or service fulfill, how do they st and to gain, what is their purchasing power?
The following easy steps will help you analyze your target audience.
Also read: 12 steps to starting a business
1. Identify the most pressing issue or problem that your product or service solve
Underst anding the problems that your product or services solves or the desire it fulfills is the initial point in defining the target market. Sometimes, you might be solving a problem which your customers don’t even realize they have.
Also, identify who is most likely to suffer from these problems or who is most likely to aspire for what for you are willing to provide.
2. List all potential customers
Once you have listed the different types of customers that suffer from the problems you solve, start to build a list of all potential customers. Include individual buyers, as well as other businesses and middlemen who re-sell your product to others. Divide your target audience into different segments to make them more accessible and to underst and their needs and expectations better. Group them by age group, gender, location, income level, etc
3. Determine who will benefit from your product or service the most
Now, out of all the potential customers, identify who is suffering the most because of these problems and who is set to lose the most by not dealing with these issues. This is your target audience.
4. Conduct Market Research to Learn Even More
Once you have identified your target customer, it is advisable to use actual market research to be certain of your analyses. You can consult a market research agency that will professionally identify the target market for your business. Yes, this will cost you a bit but will be worth it in the end as it is better to invest a little extra now than to regret it later.
5. Choose a niche market using specific demographics and psycho-graphics
The market is huge. It will take time before you can reach all your potential customers. Moreover, it is easier to start with and build a reputation in a small market first and then exp and to more. Therefore, from the market identified above, select your niche market. You can do this in two ways; one segmenting your market based on demographics or dividing it based on psychographics.
Demographic Factors
- Age
- Location
- Gender
- Income level
- Education level
- Marital or family status
- whether or not they have children
- what they do for a living
- Ethnic background
Psycho-graphic Factors
- Behavior
- Attitudes
- Values
- Lifestyles
- Interests/hobbies
6. Reevaluate your decision
Once you have identified your target market, it is important to re-evaluate your decision. Try to answer the following questions;
- Does my target audience really have the problem which we sought to solve?
- Are they really gaining out of our product or service?
- Can they afford it?
At the end write down all the information in a clear and concise fashion. This information will help you in making the best decisions for your company.
