Identifying Target Market
Target market analysis comes much later that is after identifying the target market. It is important to do the analysis; however, creating or identifying the target market is even more important. Such identification requires extensive market research that includes competitor analysis, consumer trends analysis, etc. Primarily, it starts with establishing what the product’s key solution feature is. What can it resolve, then who needs this product in the market? This analysis provides the key output in determining the target audience in the market.
Market research: Besides doing everything to sustain the market, studying or understanding the core customers is very important. It is an important aspect to focus on. Why are customers buying what they are buying? What is the customer expecting when they are buying a product? What are the products and services that they are currently relying on? Who are they buying it with, and where will help the firm identify and build the strategy accordingly?
Competitors: Competition is the key to success in the market. They not only help in continuously pushing to do well but also aid in identifying the target market. They are competitors because they are already selling similar products to customers; how can they do it. After figuring out, discover the competitive advantage to outstand in the market helps firm not only in the identification but also sales.
Current market trends: Customer is the king of the market. Trends refer to model, pattern, color, feature, fashion, or style that highly peruse customers to buy a product. The current market trends provide input as to who are the ideal buyers, what influences them to buy the product, which market has more potential, etc.
Market Research and Target Market Analysis
Target market analysis refers to the study of customers. Customers buy a product or service to seek a solution for their problem. Target market analysis is breaking down point by point to have a clear understanding of the psychological aspects of customers. The analysis usually includes the firm’s vision, the target market, the market response, the delivery, competitive analysis, etc. Further, the analyses include an understanding of the below factors.
Personal factor: Personal factors such as their age, gender, income level, their professional background, etc.
Buying behavior: Understanding consumer’s needs, hobbies and interests helps the firm identify the products they would be interested in.
Buying frequency: Understanding frequency of purchase like are they regular buyers, or seasonal buyers, or spontaneous buyers, etc.
Geographical factors: This includes where the customer is located, the area, the kind of population, surroundings, etc.
The objective: Analyzing the objective refers to the ultimate goal that the customer is establishing and why a customer chooses the firm over other competitors in the market.
Benefits of Target Market Analysis
Target market analysis offers a wide range of benefits for an organization that is aiming at market penetration. Target market analysis’s remarkable benefits include establishing prominent markets to concentrate on, further enhancing market efficiency. Besides, the analysis also helps in identifying and thereby excluding the non-feasible or non-viable market.
