While creating marketing plans, business owners often struggle with defining the business' target audience. Yet identifying your target market is the first step in creating the best marketing mix for your business. Some may feel that this will limit potential customers. Quite the opposite--it allows the business to focus their marketing efforts on the target audience that is more likely to purchase its products or services. Thereby increasing the business' revenue and its overall return on investment.
Here are a few tips to help you define your target audience:
Define the existing customer base: What are their common characteristics? Which ones bring the most business?
Research competitors: Who are they targeting? Look for an underserved niche market--do not target the same audience.
Evaluate the product/service: Create a list of your products/services and the benefits generated from each. Then create a list of people/businesses with needs that match your benefits.
Target a specific demographic: Consider who is most likely to buy your product/service based on the following factors; Age, Gender, Income level and etc. Check out the links in the reference area below to investigate this further.
Analyze the options: Do you understand the target audience's motivators? Preferences? Is your product/service affordable for the target market?
Business owners often have the tendency to view everyone as a potential customer. However, to increase the return on investment, the best practice is to define your business' target market. In fact, it is one of the most influential steps you can take to guarantee your marketing message will reach your intended audience and increase your overall revenue.Once your target audience is defined, determining where and how to market your business is much simpler.
Happy Marketing!
References: