In the marketing plan, identifying the target market is an indispensable step. Because if you have a clear understanding of your target market, you will certainly reach closer to potential customers. So what is the target market? What role does the target market play? How to define this market?
What’s the target market?
Target market is understood as the market chosen by businesses to carry out business purposes. It will be the market in which the business will provide the company’s product or service. This is definitely the market with the most advantages to help businesses achieve high efficiency in business.
|What is the target market?|
The simplest understanding is that the target market is the customer who has the need to use or buy the product that the business is distributing. The target market can be an individual or a group of customers who have a need to use the product.
Target Market Example
If you are still confused about what a target market is, then immediately read the following example:
Example: Target market of student backpacks. This market will target the following customer groups:
- Individual customers: Those who use backpacks, families with children who are students.
- Organized customers: These are stores, backpack shops, supermarkets, distribution agents,…
What role does the target market play?
Many businesses are subjective that quality products will spread to many customers over time. However, it is a fact that a good product is only limited to a group of people who have a need to use it. Therefore, determining the target market has a great impact on the revenue and development of the business in the long run.
|What is the role of defining target market?|
Identify the right customer
Once you have identified your company’s target market, you have identified your customers. Therefore, relying on the target market to advertise to the right audience will help businesses save time and costs.
Easy product introduction
Businesses always find it difficult to introduce products to customers who have no need to buy. Therefore, whether the product is good or the advertisement is attractive, the probability of closing an order will be very low.
For example, if you advertise diapers and diapers to unmarried customers, they will certainly never notice.
However, when choosing the right target, businesses can easily introduce products to consumers. In particular, these objects are all interested in your product and the ability to buy is very high if the product is good.
Advanced marketing effectiveness
Once the target market has been identified, the business will implement a specific marketing plan. And the company’s advertising strategies will be most effective if directed to potential customers.
Since then, the marketing efficiency is improved, bringing “terrible” sales every month.
How to determine the target market for your business
Determining the target market plays an extremely important role in business. Because if the wrong market is identified, the ability to sell goods is not high. Since then, the closing rate of orders is low, revenue decreases over time.
So, please refer to the following way to determine the target market for your business.
|How to define target market?|
Research carefully about the product offered
Before selling a product or service, you need to clearly define how your product helps customers? Once that question is answered, zoning the target market will be simpler.
Customer object information
What are the characteristics of customers who want to use the company’s products? For example: Age, gender, occupation, place of residence, financial ability and interests. From there, you can easily categorize customers for better product marketing.
For example: Your shop offers the same type of bag but has 2 types of goods. Quality products of class 1 will reach customers with a well-off economy. Type 2 items will be popularly introduced to customers who need to use popular products.
Localize the customer object
After having information about customers, businesses will determine who are potential customers of the company. In particular, businesses know where customers regret when they are not interested in your product.
Thus, you have a basis to identify your business customers. From there, come up with the most effective and appropriate marketing campaigns.
It is not enough just to be interested in finding the target market, what you should not ignore is exploring your competitors. Because it is possible that the customer you target is also their “prey”.
|Need to probe for competitors|
If you pay attention to your competitors, will you know who their target market is and is it similar to yours? In case your business has the same goal as a competitor, now you need to study competitive strategies to beat them.
Check the progress
After taking the above steps, the business has clearly determined which is the target market for its product. However, be sure to check the process regularly to avoid errors.
The factors of special interest are: The company’s products, potential customers, market analysis and assessment, competitors.
How to reach the target market?
After learning about what the target market is, it is also very important to reach the target market.
To reach the target market requires businesses to implement specific and detailed plans. And here are the experiences to help you get closer to the target market.
|Target market approaches|
As the name implies, differentiated marketing means that the business will segment each customer. From there, proceed to manufacture or introduce products to each customer group.
This method is very effective, but it is also quite expensive.
This approach, businesses will be easier to implement because they do not segment the audience. Enterprises only focus on producing one product and focus on mass marketing.
With undifferentiated marketing, businesses often apply to non-hierarchical goods. Means item that many people can use.
Currently, direct marketing is considered as one of the effective target market approaches. To implement this strategy, businesses need to learn information about customers.
|Direct marketing is the shortest way to reach customers|
From the available information, staff will contact customers via phone number or email. Employees directly advise on the company’s products and services to customers.
This method is commonly applied to sales services such as cosmetics, clothing, consumer loans, insurance, etc.
What is the marketing focus of the target market? This is the business focusing on a certain group of customers. The market can now be an individual or a group of customers.
As long as the business meets the criteria of quality, reputable and good products, the company will have a long-term foothold in this market.
The above article is the general share about “What is the target market? The importance of the target market”. Hopefully, the information in the article will give you more knowledge about business goals, identifying target markets for businesses.