Imagine, you have successfully set up your firm and working towards product development. Now that everything is in place, there arises a distressing question as to whether how well will your product be received in the market. The answer to this troubling situation is to determine the target market/target audience.
So, What Is the Target Market?
To design a product that better fits the market which is made up of a multitude of consumer segments and with diverse characteristics, you must first have a thorough understanding of the consumers most likely to buy your product. Your target market is that group of consumers that favor what you offer.
Why Identify a Target Market for New Products?
When developing a new product, the audience in the target market are the ones conferred to ascertain particular aspects of the product. For example, you can determine whether they would opt for your new product and their willingness to pay for it at a specified price.
It is vital to know as much as possible about your target market to devise a target market strategy and accomplish your marketing efforts effectively.
How to determine a product target market?
1.Conduct Initial Market Research
Conducting initial market research, firms secure the time and cost invested in new product development. Organizations must make informed decisions based on actual market analysis and customer responses. The primary market research also gives you insight into how the product performs in prevailing market situations.
Market research is essential to know about the competitors of your product and their policies. Almost every organization now has a market research cell, which deals with these aspects before introducing any product into the market.
With the help of market research, companies try to estimate customer expectations so that they can address them through improved solutions.
To know more about market research and its importance, look into our other blogs that give you a better understanding of market research.
2.Determine Your Value Proposition
Through determining the value proposition of the new product, you can address many questions like
- what is the problem that your product resolves?
- What is the unique selling point of your product?
- why shall people buy the product or service from you?
- How can you differentiate yourself as a unique provider in the market?
- By answering these questions, you can improvise your selling points.
3.Analyze Your Competitors
Analyze your competitors to see who they’re targeting and look at their customer base. Find something that they are neglecting, use this to your advantage and try tapping into those neglected areas.
The more knowledge you have of your competitors, the further can you improvise providing products better than your competitors.
4. Identify Your Ideal Market
Understanding your target audience is decisive. Comprehending not only who needs your product or service, but who is most likely to buy is very important when it comes to identifying your target market. Research and find out as much as possible about the customers you want to sell. Marketing to the right audience means marketing effectively. Of course, you don’t want to waste your precious time and resources on redundant marketing campaigns.
Target markets are most typically divided into smaller segments that can be split by the following factors.
Geography: If you are selling a product, geographic location will remain a major factor in segmenting your target market.
Here are some of the most common ways to segment a target market:
In Terms of a Business Entity
- Size of Company
- Annual revenue
- Number of Branches etc.
Psychographics: Many factors influence your customers’ purchasing decisions. The following are some of the psychographic factors.
- Family Stage
- Status Seeking
- Sports admirers etc.
Knowing your customer’s behavior will help you asses their buying characteristics and act accordingly. You’ll have insights into what, when and why will a customer buy. By doing so, a company can design a successful strategy.
Clarifying the following questions regarding the market, we can assess their behavior.
Understand purchase options:
- The number of times they’ll purchase?
- How long to decide to purchase?
- Where customers buy your product/service?
Just like the above few examples, I believe you’ll have a lot of questions in your head to determine your target markets. When this arises, there is a place where you get answers to all your questions. And that place is Envision Intelligence!
You could scour the internet for free information… But you’ll lack any kind of structure or guidance. You’ve probably already been doing this, but has it worked for you yet?
You should invest in your future with a proven system that offers you the structure, guidance, and community of your target market people you actually need to succeed.
Let’s work together to navigate your next!