Tactics and Methods on How to Determine the Target Market
The target market is something that you should not miss in planning marketing activities. Your product will be more easily accepted by the relevant target market. Moreover, marketing activities can run smoothly and do not require large costs if you know how to determine the target market for your company.
The target market is the group of people to whom your marketing and products are targeted. This target market group has the same demographic characteristics, behavior, or habits in obtaining the desired product. The target market can be considered as potential buyers who can increase sales of your product.
The process of determining the target market requires certain strategies and steps to be more effective. How to do it? Read this article for the complete guide!
How to Determine the Target Market for Your Business
Make sure you already have an idea or product prototype you want to offer before determining your target market. After that, do the steps below to determine the target market for your business.
1. Know Your Customer
Determination of the target market should be done after passing the market segmentation stage. This means that you need to divide or group your target market into several segments, namely based on geographic, demographic, and psychological conditions. Among the three, demographic segmentation is very important so that you can find out the match between products and target customers.
2. Identify the Target Market’s Needs
Each target market must have different needs for a product. You need to find the product information needed to be relevant to the predetermined target market profile. One way is to do product tests to find out the level of need of the target market for the products you offer.
3. Observe the Market’s Competition
Your target market may already be dominated by competitors. However, you don’t need to worry because there is a solution to win in the competition. The trick is to look at the features or advantages offered by competitors in their products, then develop your products with advantages that these competitors do not have. This strategy is often applied by large companies in marketing their products.
4. Create the Buyer’s Persona
Next, you need to create a buyer persona, which is a consumer representation in a unique and memorable design. The buyer persona should describe the demographics and physical characteristics of the target market you are targeting for promotion. Start by determining your gender, age, and lifestyle, then create a buyer persona according to the description that has been made. You can create more than one buyer persona if you want to reach a large target market.
5. Communicate with the Customers
This step is very important to determine the target market that is accurate and relevant to your product. To do this, try to see the market conditions firsthand and ask questions about how your product can meet their needs. This is very useful so that you can develop products to better suit customer needs.
6. Evaluate the Target Market’s Interest
After testing the product and communicating with customers, you can evaluate the interest of the target market. Try to see the relevance of the interest of the target market and the product being offered to see the potential for success. Evaluation needs to be done every time so that your business continues to grow and does not stop halfway.
7. Determine the Marketing Strategy and Brand Positioning
After selecting the target market, you can then determine the marketing strategy and brand positioning to market their products. Marketing strategy is an approach to promoting a product so that it can be accepted by the target market. Make sure you choose a marketing strategy that is relevant and able to reach the target market so that marketing runs more effectively.
In addition to marketing strategies, you also have to determine brand positioning to create product perceptions in the eyes of customers. Successful brand positioning will shape your target market well. Once successfully formed, you need to maintain the brand reputation that has been built so that marketing runs more optimally.
8. Evaluate the Market’s Response
Determining the target market does not stop at the marketing strategy. You need to evaluate the market response to determine the level of effectiveness of the strategies that have been implemented. This step needs to be done regularly and periodically so that you can increase the sales of the products offered effectively.
Examples of Target Market for Your Company
Maybe you are still confused about determining the target market in business. Take a look at the examples below so that you can better understand examples of the correct target market for a product.
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You have a product in the form of an application to record financial budgets and personal expenses for workers aged 23-50 years. The scheme for determining the target market is as follows:
- Produk yang ditawarkan: Aplikasi pengatur keuangan yang bisa diakses secara offline. Fiturnya berupa pencatatan transaksi masuk dan keluar serta anggaran keuangan.
- Target lokasi penjualan: Kota-kota besar yang dipenuhi pekerja dari generasi milenial, seperti Jakarta, Surabaya, Semarang, Medan, Palembang, Bandung, dan sebagainya.
- Target demografi: Laki-laki dan perempuan berusia 23-50 tahun dengan pekerjaan sebagai karyawan, ibu rumah tangga, atau pengusaha.
- Kebiasaan calon pembeli: Terbiasa dengan aplikasi dan internet sehingga tidak kesulitan saat menggunakan aplikasinya. Mereka mengutamakan aplikasi dengan interface yang tidak rumit dan memiliki beberapa fitur sederhana tetapi bermanfaat.
After understanding the steps on how to determine the target market and their examples, it’s time for you to do them to ensure your company’s effectiveness in marketing your products. No need to worry, as now you can use the highly effective Electronic Know Your Customer (EKYC Profind system from AdIns. Profind is equipped with a state-of-the-art machine learning algorithm for you to tap into previously unknown target markets.Contact us now to try the demo version of Profind and increase the success of your company’s marketing with the full version of this system with AdIns!