5 Ways Thriving Businesses Determine Their Target Market

Business.com / Strategy / Last Modified: February 22, 2017

Before you begin marketing your products or business, you have to know who you are marketing to. Do you know who your customers are?

Before you can begin marketing your products or business, or even start a business, you will need to know who you are marketing to. Who are your customers?

There are a number of reasons that knowing your target audience is important, including knowing how to tailor your message to resonate with a specific audience and what marketing mediums would be the most effective in reaching that group of consumers. Without knowing this little detail before promoting your products or services, you’ll be missing out on reaching a huge amount of people who would have been interested in what your company had to offer. 

Follow these 5 tips in order to discover what demographic you should be trying to reach.

1. Take a Look at Your Products

The first thing you need to do is take a look at what your business has to offer to consumers. What problem would your products or services provide a solution for? Who would benefit from your products or services?

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2. Do Your Research

The next step in discovering your target market is doing research on your industry and competitors. There are many resources available through the Internet to make this search easy for you, but you should be able to get a keen sense of what type of customer would be interested in your business.

Information you should try to collect is demographic info (income, education level, age, sex, and even location if it is a business that may do better in one area than another), buying patterns, and any other information that would be helpful in your search.

Most of this research has already been done for you, but if you aren’t able to find all of the facts you are searching for, hiring a marketing research firm may be the best way to get all of the data needed.

3. Determine Your Customers’ Preferred Method of Media

Although 52% of businesses have found a customer through Facebook, according to WebDam, the reality is that the same social media websites will not work for everyone. Believe it or not, there are still plenty of people who refuse to become a part of the social media scene, which may have to do with your target market’s demographics.

After completing step 2, you should have the demographic information needed to make the decision on how to sell your products or services. For example, if you average customer is retired and in their 60’s, there’s a good chance you won’t find them surfing their social media channels. Knowing how to reach your customers will make a huge difference in how effective you are at reaching them.

4. Network

Knowing the right people can be a valuable tool to helping your business grow. Find and meet the right people through trade shows and other networking events, or by simply calling or stopping by local businesses that are related to your industry.

5. Analyze the Competition

Not only should you evaluate your competitors in order to find out who their customer is and how they are selling their products or services, you should also figure out what makes you different from them. What do you have to offer that they don’t? While I highly suggest that you refrain from copying any of their marketing ideas, knowing what they have done in the past will give you some ideas.

Related ArticleHow to Stay on Top of a New Competitor

Unfortunately, according to The Facts of Business Life by Bill McBean, less than 30% of businesses last more than 10 years. The primary reason for this is the owner doesn’t know how to plan for business success or simply doesn’t know how to run a business.

The first thing every successful company must know is who will buy their products. Knowing who your customer is and what they like will make a huge difference in how well you promote your products or services to them. Follow these 5 tips and you will be able to effectively market your company. 

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