A target market is defined as a particular group of people who are most likely to purchase the products and services that a business offers. A company is more likely to increase their conversions – and their success – when they position their products and services for their target market. In this article, we highly what a target market is and why it is important for business owners.
As a business owner, you might be under the impression that you are creating products or offering services that would meet the needs of all people. As such, you might identify your target market as “everyone”. However, while it would be wonderful if all consumers would be interested in what your company offers and actually purchase your products in services, in reality, that’s rarely ever the case. The fact is that there are specific groups of people that are more likely to purchase what your company offers, and these groups of people are known as your target market.
Your target customers are those people or organizations that are the most likely to purchase what your company offers. A target market has specific characteristics, traits, and buying behaviors that the products and services you offer can speak to specifically.
These characteristics, traits, and buying behaviors can a variety of elements. Some common elements include:
By knowing what your target market is, you can better pinpoint what their interests and needs may be, and in turn, determine if you are offering products or services that meet those interests or needs.
It’s important to know your target market because it ensure that you are creating a marketing campaign that can reach them. This includes advertisements that will capture their interest, allow you to showcase what you offer and how what you offer meets the interests or needs of your audience, and where to place your messages so that they can be seen by your audience.
Many business owners develop marketing campaigns that are too general because they hope that in doing so, they will get bigger results. However, marketing to the general public can be equate to shooting 10 bullets in random directions and hoping that they will hit the target, rather than shooting just one and aiming for the target dead-on. In other words, marketing for the general public can end up being expensive and dangerous.
Here’s an example of why marketing to the general public isn’t in your best interest:
You own a company that offers vacation rentals that are in a particular price category and that are located in a specific area. You could put an ad in the paper that a million people could see; however, while a million people might see that ad, the majority of them might not be interested in your vacation rentals. Running this type of ad for the general public won’t prove to offer much in regard to your return on investment, which means that you are spending money on a marketing tactic that won’t yield the results you are looking for; you are wasting valuable marketing dollars.
On top of that, understanding your target market allows you to establish brand awareness, boosts your credibility, and makes you more authoritative in a highly competitive market.
How can business owners determine who their target market is? Here are some tips that you can use that will help you define the market that your products and services appeal to the most.
You want to determine how your products and/or services will meet the needs of your audience and fit into their lifestyle.
In addition to highlighting your target market, you also want to pinpoint the channels that are the best for you to market on in order to actually reach them. There are so many marketing channels available, including direct mail, email marketing, social media marketing, etc.
What channel is your target market the most likely to interact with? By finding this out, you can determine which channels you should be advertising on in order for your target market to see your advertisements, interact with them, and ultimately convert.
Defining your target market is important, but once you do that, you have to make sure that you are delivering the most effective advertising materials possible. While you might have identified your market, if you aren’t generating ads that pique their interests, that they can relate to, and that really highlight what you offer and how you can benefit your market, you aren’t going to see results.
Make sure that your marketing materials are:
By defining your target market, you can create a marketing campaign that will reach the audience that is most likely to purchase what you offer, which will lead to a much greater return on investment for your advertising efforts.