It would seem rather ridiculous to think that a business doesn’t know its target market. Well, it turns out this is something that happens in reality, including you. Yes, you may know what kind of people they are, but do you really know them?
It pays to understand your target market better, because if facilitates not only how your business would operate but it could also help your business grow in the industry.
So how would you determine your target market? Consider these tips from Entrepreneur.com:
Who would pay for my product or service?
First, try to understand the problem that your product or service can solve. Then, use that information to help determine who would be willing to pay for a solution. Use Google’s keyword tool to see how many people are searching for words related to your business idea.
Who has already bought from me?
To refine both your target marketing and your pricing strategy, see who has already bought your product or service. You can gain valuable insights by releasing the product in a test phase and letting potential consumers speak with their wallets.
Am I overestimating my reach?
It’s easy to assume that most people will need your service or product. But rather than make assumptions, reach out to groups of potential customers to get a more realistic picture of your audience and narrow your marketing efforts.
What does my network think?
As you try to understand your target market, it may be challenging — and expensive — to seek feedback from potential consumers through surveys, focus groups and other means. But you can tap into your social networks to get free feedback.
Am I making assumptions based on my personal knowledge and experience?
Your own personal experience and knowledge can make you believe that you understand your target market even before you conduct any research. Don’t assume that you can think like your target market.
How will I sell my product or service?
Your retailing strategy can help determine your target market. Will you have a store, a website or both? Will you be marketing only in your home country or globally? For example, an online-only business may have a younger customer than one with stores. A brick-and-mortar business may narrow your target market to people in the neighborhood.
How did my competitors get started?
Evaluating the competition’s marketing strategy can help you define your own target customer. But of course, don’t simply copy the marketing approach of your biggest competitors once you define your target consumers.
Read the full article at http://www.entrepreneur.com/article/226360