5 Effective Ways to Determine Your Target Market
To determine your target market is the most important and valuable piece of launching a new business or reinvigorating your current one. Once you determine the target market you can then get to know your customers better. The better you know your customers the more loyalty you will gain and they will be your best asset going forward.
1. Analyze what you have to offer.
Make a list of everything that your business or service does. As you write each feature, consider the benefits each has. For example if your service is something people could do on their own what is the benefit of hiring a professional.
What problem does your business or service solve?
A favorite quote is “be the answer to their problems and they will always ask you back”. What is the problem you are solving for others that will bring them back again and again?
For example, if you rent or own a house you need to keep your rain gutters clean and clear of leaves. Of course you could get up and do it yourself. What if you don’t own a tall ladder, aren’t physically capable or do not have the time to clean them yourself. You have a problem so you call the gutter cleaning service. Voila! Problem solved. Once you know what problem you are solving it is much easier to focus your marketing effort.
2. Conduct Market Research
There are a wide variety of options when conducting market research. You can determine who is purchasing your product.
Do a SWOT analysis.
Strengths. Weaknesses. Opportunities. Threats.
SWOT is an analysis of the company and its standing in its environment.
In doing this you will determine what the strengths and weaknesses of your business will be. You will also then need to evaluate the opportunities and the possible threats. Some things that will fall on this list are competitors in your area, cost of raw material, and shopping trends of customers.
4. Get Feedback from Current Customers.
Taking a side hustle full time or a small business and growing it you must ask your current customers what they think. Why did they buy, when did they buy and will they buy again. You can ask these questions to customers who have already used your product or service as well as those who are prospective customers. If they haven’t made a purchase yet, ask what their needs are and what you can do to serve them better. If a customer feels known they will be more likely to take action toward investing in your service or product.
There are a handful of ways to ask your customers the questions you need to know. Surveys, focus groups and in person discussion are some common ways to get the sample you need.
4. Check out your competition
If you do not have any of your own customers yet take a look at your competitors. Who are they targeting and who is buying from them. You can learn a lot from the experiences of others who are doing similar work as you. You can potentially learn from what does and does not work for them.
5. Evaluate your decision
After gathering all the information, you are getting close to being able to determine your target market. As you make that decision, evaluate it to see if it is the best fit. It is important to not cast your net too wide and attempt to market to too many people. It is also important that it isn’t so narrow that you won’t have consistent business. Ask yourself if your target market will need your service, will it be accessible to them and can they afford it? If the answer is no, customers will not take action and buy. When you can say yes to these you are ready to take your next step.
Now that you have the tools to figure out your target market, it’s time to market to them! At Brilliant Impact, we are ready to help you make your small business a thriving part of your life. Contact us today to learn how we can partner with you to make your business dreams come true!