Due to the great variety of types of consumers that exist today, and the constant changes that they usually have in their needs, tastes, and preferences, something that every business cannot stop doing is clearly defining its target market and constantly analyzing it.
Defining and analyzing the target market allows us to focus on the consumer that comprises it and better understand its characteristics, and thus be able to specialize in it and make better decisions or formulate more effective marketing strategies.
In this article, we tell you what the target market, target market, or target audience is, how to define it, and how to analyze it.
The target market or target market is the set of consumers to whom a company addresses or directs its products or services.
What is the target market?
The target market, or target audience, is the set of consumers to whom a company is directed; That is, the set of consumers to whom a company offers or sells its products or services.
The importance of defining the target market is that by doing so we can adapt our product and direct our marketing efforts to the consumer that comprises it, and thus achieve greater effectiveness than we would achieve if we addressed all the consumers that exist for our type of product. product.
For example, by defining our target market we can design a product that is responsible for satisfying the preferences of the consumer that makes it up and, therefore, a product with better results than one aimed at all consumers that do not take into account the preferences of any.
Or, for example, when defining our target market we can write an advertising message that highlights the benefits of the product that the consumer prioritizes and, therefore, a more effective advertising message than one directed at all consumers that does not take into account. the priorities of none.
In all market research, generally just as important as analyzing the target market is analyzing the competition.
How to define the target market?
To define or determine a target market, the first thing we must do is segment the total market that exists for our type of product; That is, segment the total market that exists for our type of product into different homogeneous submarkets made up of consumers with similar characteristics.
To carry out this segmentation we could use variables such as:
- Gender (men or women).
- Location (country, region, city, etc.).
- Age range.
- Socioeconomic level.
- Income level (monthly income range).
- Level of education (primary, secondary, university, etc.).
- Social stratum.
- Lifestyle (activities, interests, hobbies, etc.).
Once we have segmented the total market that exists for our type of product, we must choose from the resulting submarkets the most attractive one to enter taking into account our resources, capabilities, knowledge, and experience (which would become our target market. or target market).
Some examples of target markets are:
- women ages 18 to 35 with an average income of $500 to $1,500 (for example, for a business selling clothing).
- Internet users who want to learn how to set up their businesses (for example, for a business dedicated to selling online courses).
- local parents who have no one to leave the care of their young children to (for example, for a daycare).
- older adults who do not have family members with enough time to care for and care for them (for example, for a shelter for older adults).
Something important that we must take into account when defining our target market is to make sure that we choose a market that is not so broad since it would be difficult for us to get to know or serve the consumer that makes it up well; but also not so specific since it would not be a market with enough buyers and, therefore, a sufficiently profitable market.
The analysis of the target market is the analysis of the needs, tastes, preferences, desires, consumption habits, purchasing behaviors, customs, attitudes, and other characteristics of the consumer that comprise it.
How to analyze the target market?
As important as defining the target market is to analyze it, since this allows us to better understand the characteristics of the consumer that makes it up or to know characteristics of this that we did not know before, and thus be able to make decisions or formulate marketing strategies that allow us to serve them in the best possible way. best possible way, or the best results they can have in it.
For example, when analyzing our target market we could discover that the consumer that comprises it usually pays between 30 to 50 dollars for our type of product, and thus know that we should launch our product on the market with a price located in that range.
Or, for example, when analyzing our target market we could discover that the consumer that comprises it usually buys our type of product on the Internet, and thus know that in addition to selling our product in a physical location, we should also sell it on the Internet or, in any case, advertise in this medium.
It is usually thought that analyzing the target market is a complex task for which it is necessary to carry out exhaustive market research, But the truth is that it is a task that can be as simple as talking to our customers and paying attention to the comments they make about our products.
To analyze the target market, if we have not already done so, first of all, we must clearly define this market and describe or indicate the main characteristics of the consumer that make it up (for example, where they live, what is their age range, what is your income level, etc.).
Once we have clearly defined our target market, we must collect the information from the consumer that makes it up that allows us to know them better, or that we consider relevant or necessary according to the objectives that we want to achieve with our analysis.
The information to be collected could be made up of your needs, tastes, preferences, desires, consumer habits, purchasing behaviors (where you buy, when you buy, how often you buy, why you buy), customs, attitudes, and other characteristics.
To collect this information we could use any of the different information collection techniques that exist, the most used being the following when collecting information from consumers:
The survey
The survey is the most used information collection technique when collecting information from consumers.
This allows us to obtain more precise data than other information collection techniques since it allows us to obtain direct information from the consumer; but on the other hand, it is the most difficult to carry out and the most expensive.
A survey can range from an elaborate survey that we conduct to a sample of consumers, to small surveys that we conduct to our clients when they visit us.
In our survey, we must ask questions that allow us to obtain the information we require from consumers.
For example, if we want to get to know them better, some of the questions we could include in our survey questionnaire are:
- What is the first thing you usually take into account when purchasing this type of product?
- What are your favorite models?
- How much do you usually pay for it?
- How often do you usually buy it?
- Where do you usually buy it?
Or if we just want to know your tastes and preferences regarding a certain type of product, some of the questions we could ask are:
- What is the first thing you usually take into account when purchasing this type of product?
- What are your favorite models?
- What are your favorite colors?
- What features would you change or add?
The interview
Another information collection technique commonly used when collecting information from consumers is the interview.
This can range from a complete interview lasting almost an hour that allows us to get to know the consumers well, to small conversational interviews that we carry out with our clients when serving them.
As in the case of the survey, in our interview, we must ask questions that allow us to obtain the information we require from consumers.
For example, if we want to know your impressions or your level of satisfaction with our product, some of the questions we could ask you in our interview are:
- How did you like our product?
- What is the product you liked the most?
- What did you like most and least?
- What would you like us to add or change?
- How likely are you to visit us again or recommend us?
- What suggestions or recommendations would you give us?
The observation technique
Another information collection technique commonly used to collect information from consumers is the observation technique.
This can range from visiting the places that consumers usually frequent or where they usually make their purchases and observing their behaviors, to observing how they interact on our website.
As in the previous cases, when using the observation technique we must observe the facts or situations that allow us to obtain the information we require from consumers.
For example, if we want to know their needs, we could go to the places where our type of product is sold, and observe the products they most demand, the questions and objections they ask the sellers, the products they finally decide to buy, etc.
The market test
Market testing is an information-gathering technique that is usually used to gather information from consumers when a product is about to be launched on the market.
Market testing allows us to know the impressions that consumers have regarding a new product that is about to be launched on the market.
For example, as a market test, we could set up a small tasting stand where we can test our product, observe the impressions and reactions that consumers have when trying it, and ask them for their comments or suggestions.
Once we have collected the information that we require or need from the consumers that make up our target market, we proceed to analyze it.
For example, after carrying out our survey, and counting, tabulating, and analyzing the data obtained, we could conclude that the main factor that consumers take into account when deciding to purchase our type of product is the service. to the client provided.
And, once we have analyzed the information collected from consumers, based on said analysis, we proceed to make decisions or formulate marketing strategies that allow us to serve them in the best possible way, or that may have better results for them; For example:
- In the case of the product: design the product that best meets your needs, make modifications to our product in such a way that it better adapts to your tastes or preferences, or improve our customer service if this is the factor that is most taken into account when time to decide your purchase.
- In the case of price: establish the appropriate price taking into account your economic capacity, reduce our prices if they are price-sensitive consumers, or increase them if they are consumers who look for quality before prices.
- In the case of distribution: sell our product in the sales points that they use to buy products similar or complementary to ours, that are more accessible to them, or that are located in the places they usually frequent.
- In the case of promotion: choose the advertising media that are most accessible to them or that have the greatest influence on them, or write advertising messages that can have the greatest impact on them or that highlight the benefits they seek.
It should be noted that the analysis of the target market is something that we must do constantly and not only when starting a business, since the needs, tastes, and preferences of consumers constantly change, especially in today’s changing world.
Likewise, the analysis of the target market should not only involve carrying out the previously described process, but also always being attentive to the new needs, tastes, and preferences of consumers, listening to them carefully, and asking them whenever possible for their impressions or suggestions about the market. our products or services.
