How to effectively determine your target market
Your business will grow only after knowing and understanding your customers closely. But startups often find it challenging to identify their target markets and thus, define goals also. It often happens that the market size is overestimated and not a single target turns out to be valuable.
Here is a simple summation of some tips that can be helpful in determining your target market:
1. Identify those people who are willing to pay for your business offerings:
Firstly, review your product and its benefits. Try to discover whether your product caters to the needs of your customers. You also can use Google’s keyword tool to find out what the customers are searching for in association to the nature of your business. Accordingly, try to explore who would be inclined to pay for the solutions offered by your business offerings.
2. Track those customers who already pad for your offerings:
To prune your target marketing and pricing strategy, peep into your database to see who has already obtained your product/service. Thus, you will get a clear idea of the buyers’ buying behavior. Based on your findings, you can alter your target marketing strategies.
3. Never overestimate the accessibility:
It is an obvious nature that businesses think most of the people will buy their products or services. But this is a myth. Why would everyone buy your offering if it is not a solution to their problems? Thus, to tap exact target groups, you need to conduct a research and obtain feedback from your potential customers. Based on their feedback, you can narrow down your marketing efforts to attack the target markets.
4. Try to obtain feedback from various circles:
It is challenging and expensive also to obtain feedback from your target market. But it is easier to obtain feedback from focus groups that are into your social media network. People in your extended network would be obliged to share their opinions and even recommendations.
5. Never assume your thought process to be similar to your target market’s:
You cannot base your target market’s thought process on the basis of your own personal knowledge and experience. You need to talk to people and continuously interact with them to understand them and their needs closely.
6. Implement a revenue model which is reaping:
Try to explore how effective your revenue model is and how far it is capable of estimating the target market. It is easier to overestimate the size of the market but if you precisely narrow down your targets, your model would also be obtained that is valuable.
Your selling strategy will help you decide your target market. For example, if you’re offering B2B solutions, your market place will be your local areas.
8. Take a look at the strategies adopted by your competitors:
You can review your competitor’s strategy of targeting markets. You can even explore whom they are targeting. This will help you identify your target markets too because the nature of both of your businesses are similar. But make sure you do not copy them.
9. Conduct a market research to identify your customers:
Conducting a market research based on the target audience’s geographic, demographic, and buying behavior will help you track your target markets.
10. Give a thought to expansion plans:
In due course of time, re-sculpt your target market so that you can expand your market.