Every sales team and general business wants to know who their customers are. Who are these ideal people who fit every aspect of their product? What are their key interests and priorities? If you can get answers to these questions, it can help you to better prioritize the deals that would most likely bring the best results for you. But how do you find a target market and what is exactly a target market? At the basic level, a target market is a group of customers for which your products and services are aimed. It is normally defined by the industry you are involved in. Once you have identified your industry, you go ahead and figure out its size. Even within that industry, there will be very large companies.
When looking forward to analyzing your target market, here are some important steps on how to go about it.
Analyze your products or services
You need to take a look at what you are selling so that you can understand which consumers would get value out of your products. There are a couple of questions that can help you with the process. What needs do your products or services fill? Are there any problems or pain points you want to solve? Who would benefit most from your products or services? Once you have answers to these questions, you might want to consider getting feedback from your current customers. Seek help from a focus group or ask your service department what the common problems would be. Analyze your products and services in a way that helps you better understand your target market. You might learn that your customers are not even the people you have been targeting.
Check out the competition
You need to perform an analysis of your competitors to see who they are targeting. Take a look at their customer base and see if you can find an area of the market you could focus on, that you might be missing. One of the best ways to do the same is to conduct a competitive analysis. You need to do your research to figure out who your competitors are, see what they offer and even review tactics they use to drive their sales. Looking at your competitors will help you identify gaps that you can fill as well as the target market they are focusing on. This could also mean you can expand into new markets geographically or even develop new products to target a different market.
Choose criteria to segment by
A target market can be segmented by a few variables. Consumers can be split by demographic, geographic, and behavioral factors. This is essentially the process of creating a buyer persona. You will need to divide your target market into several target customers. Perhaps your target market is mid-sized companies in search for purchase automation software. You could divide your target customers into several groups including marketing department leaders, founders, CEOs, sales leaders among others. One of the easiest ways to do this segmentation is based on age, gender, income, location, behavior, values, interests among others.