batesvillechristmastrain.com – If you are a businessman, of course you want your business to grow rapidly. Well, to achieve this, an appropriate and effective marketing strategy is needed, one of which is determining the target market.
This is very important for starting a business and for getting good sales deals.
What is Target Market?
Before knowing more about how to determine the target market, you must first know what that means. The target market is a group of consumers who are the target of the company’s approach to buying the products being sold. In short, the target market is the group to be served as consumers.
In determining the target market, the company must first segment the market by grouping consumers into groups with almost the same characteristics. Usually, have a vulnerable age, nature and character that is almost the same. This is important because companies are not able to serve all consumers or buyers in the market because of the variety of needs and wants. Therefore, the company needs to identify which part of the market to serve.
The Importance of Determining Target Markets
Why do you have to determine the target market? What benefits will you get? Below are some of the benefits you will get by determining your target market before starting a business:
- Put your marketing ideas in a clearer light
- Organize products for the better.
- Find and compare market opportunities.
- Grouping the budget that is owned appropriately.
- Creating traction in the field of marketing.
- The company will be in a better position.
Below are some effective ways you can determine the target market for your beauty products business:
1. Determine Who Your Customers Are
After you have an idea of the product that you will offer to consumers, then determine who your target potential customers are.
Determination of the target market can be determined based on several segments as follows:
This segmentation is grouping the target market based on location or region, with the hope that each region has different needs so that it can be matched to the characteristics of your product or brand. For example, fertilizer sales in plantation areas. This segmentation includes neighborhoods, zip codes, area codes, cities, provinces and regions.
Demographic segmentation is the most basic and important thing. The goal is to find out whether the product or brand being marketed fits this classification. For example, if the product to be marketed is in the form of cosmetics to delay premature aging, you will not market it to teenage girls aged 12-17 years but to women aged 30 years and over.
You can divide your target market by economy class, personality or lifestyle preferences. This market segmentation is divided based on education level, income level, type of work and so on. Lifestyle classification involves values, beliefs, interests, and so on. Psychographic segmentation based on their lifestyle or socio-economic class.
2. Knowing the Needs of the Target Market
After you determine who your customers are, the next step is to find information on the needs of the consumers you are targeting. You can do this by doing a product test. Thus, you can find out the market needs for the products you offer. Try to join the bazaar to conduct product tests and as a medium to introduce products. Maximize this moment to find as much information as your target needs.
3. How to determine the target market by conducting an evaluation?
The third way is to re-evaluate the needs and interests of your target market for the products you offer. Do not let, when you have started a business but your target market is wrong. As a result, the business you build dies in the middle of the road.
4. Define Marketing Strategy
After evaluating the target market, determine the right strategy in terms of product marketing. Because each target has a different style in determining its marketing strategy. For example, your target is teenagers aged 17-20, so the marketing target must be through social media. This is because the vulnerable aged 17-20 are very close to social media such as Instagram.
5. Market Response Evaluation
The last way is to evaluate the market response, whether the strategy you apply is effective or not. If it is not effective, you can change the product marketing strategy. Evaluation of market response aims to maintain and increase sales of the products you offer. Do evaluations on a timely basis, for example once a month to make it more effective.
6 Basic Guidelines for Achieving Sales Targets
Before determining the target market, there are several things that you should pay attention to. Check out the review below.
- Segment Size
Pay attention to the size of the segment to be addressed to decide whether the segment is promising enough to continue or not. Don’t target segment sizes that are too large or broad. Generally, large companies will tend to choose large segments and vice versa, small companies will choose smaller market segments. The goal is that the company is able to adjust the company’s targets to their respective capabilities.
- Segment Growth
Analyzing segment growth is very necessary before determining the target market. Pay attention to the growth of the segments to be targeted to see the possibility that the business will develop in the future. Even though the current segment size tends to be small, it is possible that the segment will grow to be large in the future. Basically, a small segment is a potential market segment.
- Situation Analysis
Do a thorough and careful analysis of the situation before determining the target market. The situation analysis relates to consumers, suppliers, and distributors using a SWOT analysis (Strengths, Weaknesses, Opportunities, Threats).
- Enterprise Resources
Before determining the target market, try to pay attention to the resources that the company has. If the company’s resources are obtained from cooperation with outsiders, then you have to be careful. Because the benefits and risks are borne together.
- Available Funds
Pay attention to the funds provided by your company, if the company provides little funds, don’t take the risk of determining a large target market. Strive for a balance between funds and targets.
- Appropriate Purpose
After determining the market segment, the company should stay focused on the segment. Try not to switch to other market segments that were not planned beforehand to avoid the risk of experiencing losses.
- Target Market Example
Below, we will provide an example of determining the target market. For example, you are an entrepreneur in the field of women’s clothing, then an example of a target market that you can define is as follows:
- Products for sale: women’s clothing for sale online.
- Target locations: big cities that can be reached by couriers in a maximum of 2-3 working days.
- Target demographic: women aged 17-30 years who have income above 2 million per month.
- Psychological characteristics: familiar with the Internet and social media and follow current fashion trends.
Use Journal Accounting Software as a Reference in Determining the Target Market. The importance of determining the target market is indeed one of the ways to do it before starting a business. Apart from that, you also have to manage business finances if you want your business to continue to grow and develop. So, above are 5 ways to determine an effective target market that can be done. Hopefully this information can be useful for you, and don’t forget to share it on social media.