- Starting a Business
- Inventing a Product
- Buying a Franchise
- Home Business
Before you can even begin creating a marketing strategy, you will need to define your target market. Your target market is the specific group of people that your company has created products and services for.
Target market demographics are not as cut and dry as they used to be. It used to be that age and geographic location could tell us what we needed to know about a market. That is no longer the case. For example, you may have two women, both 22 years old living in San Diego. The first woman might be finishing up college and thinking about grad school. Maybe she rents an apartment with some girlfriends and works on the weekends. The second woman might be in the Navy. She’s already into her career, lives on base, has a husband and a small child. Both of these women have completely different lives and have different sets of needs and wants. So you’re target market might include 22 year old women, but not all 22 year old women.
Narrow down your target audience by asking:
• Who are you speaking to? Females? Males? Children? Adults?
• What is their approximate age range?
• Is this product or service geographically based? Is the product intended for Texans? MidWesterners? East Coasters? Americans?
• Who will benefit from this most? Who will benefit from this least?
• What do they want from my product or service?
• What do they like to do?
• Where do they like to shop?
• How much education do they have?
• What kind of income do these people make?
• What is their ethnic heritage?
• Where do these people live?
• What are their values?
• What is important to them?
• Who else uses products similar to mine?
• What are their buying patterns?
• Are they brand conscious?
This is not the time to guess! Ask your target audience these questions, read reports and do as much research as you can. Utilize some market research techniques to more accurately define and develop your target market. Once you’ve compiled this knowledge, you can create a customer profile with a full description of the demographics, geographics and psychographics of your potential customer.
Demographics are the physical characteristics of a population such as age, sex, marital status, family size, education, geographic location, and occupation.
Geographics are units which differentiate a market by geographic area or region such as country, state, county, city or neighborhood.
Psychographics are the identification of personality characteristics and attitudes that affect a person's lifestyle and purchasing behaviors. They include opinions, attitudes, and beliefs about various aspects relating to lifestyle and purchasing behavior.
The goal of your customer profile is to create a complete person, your ideal customer. By defining their age, education level, buying behaviors, values, affluency, etc., you will use all of the knowledge from your research to create a description of the person who will buy or use your products.