5 Ways to Determine the Target Market and Its Benefits
It is very important to determine the target market or market before we determine the production of goods or services that we will market. This aims to make the business we run more efficient so as to maximize the profits that will be obtained.
Do you have a product that doesn’t sell? If yes, then you need to be suspicious about how to market it.
In order for the product to sell quickly, you must first know who your target market is. What is a target market and how do you define it? Here is a full explanation.
What is a Target Market?
The target market is the people who are in the target group for selling the product. Usually, people in the target market group will have the same habits or characteristics.
The target market is also commonly referred to by the name of potential buyers. You have the opportunity to sell your product to people in this group.
Benefits of Knowing the Target Market
Of course it’s important to know your target market before you actually sell your product. There are several benefits of knowing the target market, namely:
- Increase sales. You can get a turnover that is more than your target if you already have a target market.
- Knowing the production and marketing budget. Knowing your target market will make it easier for you to save your budget.
- Knowing Market Competition. You can anticipate business rivals or other economic environments that may pose a threat.
After knowing what are the benefits of determining the target market for the products we are going to sell, then the following are the steps to determine the correct target market.
How to Determine the Right Target Market
There are at least 5 ways that you can apply to determine the target market to match the products offered.
The following are the five methods and their explanations.
1. Determine Who the Product Consumers are
The first thing you should know is who your customers are. There are several segments or groups that can help you determine who the product consumers are, namely geography, demographics to psychology.
For example, suppose you have Japanese food products. Then you can find consumers who like Japanese food in your city of residence. You can also find out that the product should be marketed to women or men of a certain age.
2. Know the Needs of the Target Market
The second way is to know the needs of the target market. Customers won’t buy products that they don’t use or don’t like.
To be able to know what the needs of your target market are, then you can try to do a product test. You can try participating in activities such as bazaars to introduce and conduct product trials.
3. Evaluate the Target Market
Next is to evaluate the target market. After testing, you’ll know what’s important to consumers and what’s not.
Evaluate and improve your target market or product according to the results of the experiments that have been carried out.
4. Define Marketing Strategy
Fourth is to determine the marketing strategy. The marketing strategy carried out must be in accordance with the target market. For example, say you are targeting people aged 17 to 35.
With this, the suitable marketing media to use is social media such as Instagram or TikTok. If you are more targeting products for those aged 50 years and over who have difficulty using gadgets, then you can try distributing brochures or pamphlets.
5. Evaluation of Market Response
The last is the evaluation of the market response. You can find out whether the marketing strategy and some of the things you have done before are effective or not.
If not, then use the evaluation results to improve the parts that are still less effective. Evaluate regularly, for example every 1 month or 3 months.
Now you know what are the benefits of knowing your target market and how to find a good target market to sell products to. Good luck.
