12 Jun Understanding Target Markets
Understanding target markets is important for any business whether large or small; and having a well-defined target market, and also a niche market is very important (given the current state of the economy). Target markets is not exclusive, but inclusive to all consumers even those who does not fit your business criteria. The reason is that the main focus is the company’s marketing dollars, and brand message for a specific target market that is more likely to purchase your product and services than other markets. Additionally, (for the company), it is more affordable, efficient, and effective way to reach potential clients/consumers and generate business. There are many elements to consider when creating a market plan. The focus of this market plan will be on three elements which are primary research, secondary research, and customer analysis.
Primary Research
Primary research goal is to gather data from analyzing current sales and the effectiveness of current practices. Primary research also takes into account the competitor’s plan and information about the competition. Included in primary research are Interviews (either by telephone or face-to-face); Surveys (online or by mail); Questionnaires (online or by mail) and; Focus groups (gathering a sampling of potential clients or customers and getting their direct feedback). (Pyle, L.S. 2010). Some important questions that are included in this plan are; 1). What factors do you consider when purchasing this product or service? 2). what do you like or dislike about current products or services currently on the market? 3). what areas would you suggest for improvement? 4). what is the appropriate price for a product or service? (Pyle, L.S. 2010). These are very important questions because it gives the company an overview of the perception of their products and services.
Secondary Research
The goal of secondary research is to analyze data that has already been published. Secondary research helps identify competitors, establish benchmarks and target segments. Target segments are people or individuals who have already been identified and are in the company’s targeted demographic. These are people or individuals who live a certain lifestyle, exhibit particular behavioral patterns or fall into a predetermined age group. (Pyle, L.S. 2010).
Consumer Analysis. A vital component of any business plan in all stages of growth is the customer analysis. Consumer analysis helps you as a business or a company to identify and define your target market and how you would reach them. Customer analysis is crucial and vital to any effective business strategy. The reason for this is that; If a business doesn’t know who its customers are or what they want, it cannot meet their customers’ needs and desires. Overall consumer analysis: Identify the target customer; understand the needs of the customer and; Show how the company’s product or service meets the customers’ needs and or wants. (“What is Customer Analysis, n.d.”).
Target Market (Overview). A target market is a group of consumers or organizations most likely to buy a company’s products or services. Because those buyers are likely to want or need a company’s offerings, it makes the most sense for the company to focus its marketing efforts on reaching them. Marketing to these buyers is the most effective and efficient approach. (“Target Market, n.d.”). Target Market is important because it is the basis for your products and or services. In other words, the products that are produced are geared towards a particular market. For example, if you create surf boards, your demographic would be individuals between 18-46 who surfs (and sports enthusiast). In reference to the iPhone my demographics would be male and female; 18-45 years of age; college students, business professional, working class individuals (adults). Psychographic would be social class (middle class to upper class); Lifestyle: Resigned, Aspirer, Suceeder and Explorer. (Dudovskiy, J. 2018).
Insight. The insight that I have gained from my inspection and analysis of the demographic and psychographic information that I have found is that; companies and businesses whether large or small cannot survive without both of these elements (demographic and psychographic). From a market segmentation point of view the demographics deals with who the buyer is as relates to their age, race, religion, gender, marital status, family size, income, and education etc. Additionally, this information helps companies and organizations target their customers or consumers more accurately or precisely. On the other hand, psychographics deals with or explains why consumers or customers buy (products and or services). Included (in this psychographic) is the consumer’s buying and spending habits, hobbies (interests), values, and opinions etc. The combination of both of these elements (demographics and psychographics), forms a buyer persona for companies and business organizations (large and small), which gives them a detailed picture of their targeted customers (consumers), and clients.
References
Business encyclopedia. (n.d.). Target Market. Retrieved from https://www.shopify.com/encyclopedia/target-market
Cmgpartners. (n.d.). What is Customer Analysis? Retrieved from http://cmgpartners.com/content/customer-analysis/
Dudovskiy, J. (2018). Apple Segmentation, Targeting and Positioning. Retrieved from http://research-methodology.net/apple-segmentation-targeting-and-positioning/
Pyle, L.S. (2010). How to Do Market Research–The Basics. Retrieved from https://www.entrepreneur.com/article/217345
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