How do You Identify Your Target Market
Finding your target audience is important. You’ll be able to market your product or service to the right customers! Understanding who they are, what they do, and how they think will allow you to efficiently and effectively tailor your marketing towards them.
Finding your target market can help grow your revenue, customer loyalty and conversion rate. But how exactly do you identify your target market?
We are Moment, and today we’ll define what a target market is and how do you identify your target market.
What is target Market?
A target market is a group of customers that are possibly interested in your product or service. A target market is a subset of the total number of customers.
The customers that are in a target market will have a similar location, income, behaviour and demographics.
Once you understand who your customers are, you can develop a marketing and sales plan that will appeal to them. You can be confident that your investment will have a return when you market towards the right customers.
Let’s show you how you can find your target market!
The 4 types of Target Market Segmentation
When defining your target market, you’ll need to separate your customers. This will help you understand who they are and how they behave.
There are 4 types of target market segmentation:
- Demographic
- Geographic
- Psychographic
- Behavioural
We’ll explain each to give you an understanding of how you can properly define your target market.
Demographic Segmentation
Demographic is one of the more popular ways used for market segmentation. Demographic segmentation refers to defining your customers from observable characteristics. You should use the following traits to define your demographic target audience:
- Age
- Gender
- Income
- Education
- Race
- Family
- Religion
Demographic segmentation is a great way to give you a basic understanding of who your customers are.
For example, say you're a business that sells toys. Who are your toys targeted towards, boys or girls? What age group are the toys for, Babies or toddlers? When you define who the toys are made for, you can tailor your marketing and brand that will appeal to that audience.
Geographic Segmentation
Geographic segmentation refers to splitting your potential customers based on where they are located. You can determine this by country, state/province and city. You can even define which part of the city you want to target.
When defining your target market by geography, you can also look at population density, climate, and defining if it’s suburban, rural or urban.
If you’re a local business your geographic target market is going to be a lot smaller than bigger companies like Amazon and Apple.
Psychographic Segmentation
Psychographic is similar to demographic segmentation but focuses more on the mental and emotional characteristics of the target market. Psychographic is harder to determine than demographic but can give you a great insight into how your customers think and act towards certain products.
When segmenting by psychographic, you can consider factors such as:
- Personality traits
- Beliefs
- Values
- Attitudes
- Interests
- Lifestyle
- Motives
Once you understand the psychological aspect of your customers, you can fit your brand and marketing to ensure that they have a positive customer experience when they interact with your brand.
An example of this is clothing brands. Gucci is targeted towards more of a fashion, rich lifestyle, while Nike is targeted for more athletic lifestyles.
Behavioural Segmentation
Behavioural segmentation is understanding how your customers act or their displayed behaviours they have when they interact with your brand, marketing assets and products. When you’re trying to understand the behaviour of your customers looks at things like:
- How they interact with your website
- Spending habits
- How often they use certain products
- Are they loyal or do they easily switch
To collect behavioural data you can use analytic tools like google analytics, CRM platform and live session recordings like Moment, a/b testing and surveys.
Closing thoughts
There are many benefits of finding your target market:
- Improves performance
- Finds areas for improvement
- Helps you build a brand
- Can help with product development
- Better return on investment
We recommend you take the time to define your target market.
Once you define your target market, you’ll be able to tailor your marketing and sales strategy, product, investment and business model. You’ll be able to make valuable business decisions that will help grow your business and revenue.