Is your target market on target

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Is your target market on target

  1. 1. Is Your Target Market on Target? Research Edge June, 2013
  2. 2. Target Market The consumers a company wants to sell its products and services to, and to whom it directs its marketing efforts. A target market can be separated from the market as a whole by geography, buying power and demographics, as well as by psychographics. (Investopedia)
  3. 3. Understand your product
  4. 4. What product or service do you sell? What features set it apart from similar products? Why would someone want to buy your product or service? What benefits does it offer to them? What problem does it solve?
  5. 5. Is your product something that customers want versus need? Is it typically bought year round or seasonally (holidays, summer, back-to-school)? And so on….
  6. 6. Define your niche
  7. 7. Who are your major competitors? Why is your product or service better than that of your competitor? (Cheaper, additional features, more convenience, better customer service, etc.) How is your competitor’s product better than yours?
  8. 8. Who are your competitors targeting? Is your target market the same or different than your competitors? If different, how so?
  9. 9. Reality check  Is the market large enough to allow a reasonable profit? Have you explored its size? If the same market, can you appeal more than your competitors? What makes your product stand out? What percentage share would you need to divert to be profitable? If a different market, is it viable?
  10. 10. Unique Selling Proposition (USP) A description of the qualities that are unique to a particular product or service and that differentiate it in a way which will make customers purchase it rather than its rivals (The Economist).
  11. 11. Refining the Target Market
  12. 12. Do you sell to businesses (B to B) or individuals (B to C)?
  13. 13. If B to B - Industry Size – revenue or employees Years in business Headquarters vs. branch
  14. 14. If B to C - Geographic scope Demographic characteristics Psychographic characteristics
  15. 15. Geographic scope Neighborhood City wide State/region National International
  16. 16. Demographic characteristics  Age  Gender  Income level  Education level  Marital/family status  Occupation  Ethnic background
  17. 17. Psychographic characteristics  Personality  Attitudes  Values  Interests/hobbies  Lifestyles  Behavior
  18. 18. Market Segmentation  A marketing term referring to the aggregating of prospective buyers into groups (segments) that have common needs and will respond similarly to a marketing action. Market segmentation enables companies to target different categories of consumers who perceive the full value of certain products and services differently from one another. Generally three criteria can be used to identify different market segments: 1) Homogeneity (common needs within segment) 2) Distinction (unique from other groups) 3) Reaction (similar response to market) (Investopedia)
  19. 19. How do I find all this information?  Primary Surveys Blogs, forums Competitor websites  Secondary Market research reports Suppliers Industry or trade associations
  20. 20. Create Personas or Profiles
  21. 21. Example New condos for sale in the Warehouse District
  22. 22. Claritas PRIZM Analyze your current customers to understand who is purchasing your product or service. With insights into which types of consumers are buying your products, you can refine your strategies according to marketplace demands.
  23. 23. Young Digerati (left) vs. Cosmopolitans (right)
  24. 24. Research Edge is a New Orleans based consulting firm specializing in business research. We help clients understand their customers, their competition, and the environment in which their business operates so they can make smart decisions. Cynthia B. Fromherz, Principal Contact us at: Info@ResearchEdgeConsulting.com © Research Edge 2013

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