A target market is a group of customers that you are aiming your products at. They are the people (and companies) that are most likely to buy your stuff. It makes good sense to know as much about them as you can:
- What are their characteristics? There are a number of ways to look at this but the simplest methods are the best because data is readily available and using data is much better than guessing. Gender, age, social segment, spending power, employment status, income, can all provide useful insights for you. Collect as much data as you can on who is buying your product, know what’s important to them and make sure that your offer is compatible with their needs.
- What problem do you solve for them? That’s the first part of the value proposition. The second part is the benefit you provide. The bigger the problem the bigger the price. The opposite is also true. Knowing the “pain points” of your customers and providing relief is a great way to establish a sustainable relationship and revenue stream.
- Why will they buy from you? Don’t underestimate how important differentiators are; comparisons are just a few clicks away. Commodities (same as) compete on price. Uniqueness means higher margins. Set your strategies accordingly.
Organizing customers into groups (targets) and knowing their preferences are necessary fundamentals to align your sales plans and achieve your growth.