A Poor Mom’s Guide For Writing A Startup Business Plan Part 5

How do you understand and define your target market? No one has the time and the money to spend targeting everyone. Even small businesses need to segment the target market, so it can effectively compete with the other players in the industry. Segmenting the target market does not mean you exclude those who were not included in your small group.

 

With a clearly defined audience, you are able to efficiently reach them in the most affordable way. Besides, reaching out one segment at a time is better and more efficient than having to do all of them at the same time.

 




 

Each market segment may have different preferences and needs, which is the main reason one should look into the benefits of performing market segmentation studies. Look for common characteristics, buying behavior, trends, and other similar traits. You can choose specific demographics or psychographics to target.

 

However, you would not want to break it too far. If you can reach them with the same message, the least costly would be your lead procurement. Defining the target market is the hardest part in business planning. Also, clearly defining your audience makes all the difference when you are creating your content marketing and blog advertising strategy.

 

If you are writing about a restaurant, how do you frame it correctly? Of course, that would be largely dependent on your target audience. What do you think is the best person that can tell you whether what you write is hitting the target? One simple answer – your audience!

 

Creating a marketing and content strategy without a clear understanding of your audience is a bit like setting a boat adrift without navigation. You can set a goal and then list how you are going to reach that goal. You very well know that beneath the effort is a desire to reach people and convert these leads into paying or clicking visitors.

 

Always build your audience profile on a solid demographic base. What is their most pressing issues, problem, or desire? Every person on that list has something that keeps them awake at night. Whatever the issue, whether longstanding or short term, it’s the entrée into the discussion and your invitation into their lives.

 

Understanding the predominant problem that brought them to your door or website or blog can help you create a content that attracts more of those prospects. Articulate what drives them to you. Whatever you sell, the most basic task you should do is to study and understand your potential customer or target audience.

 

 

 

Information about the target market. Having a well-defined market is critical to your market strategy and product launch. Targeting a specific market segment means focusing your money and attention on a specific group who is really interested and is ready to buy your product or services.

 

Targeting does not mean excluding. It is a technique to know your potential level of profitability first before you venture selling to people who do not really have a need for your product at this time.

 

In short, defining your market and segmenting them is some kind of priority selling for profit maximization. Choose a specific set of demographics to target. The starting point can be understanding the problem you are able to solve and then start to work out who is most likely to suffer from these problems.

 

 

Here are some of the demographics you may want to consider in selecting your target market

  • Age

 

  • Location

 

  • Gender

 

  • Income

 

  • Education

 

  • Marital status

 

  • Occupation

 

  • Ethnic background

 

 

Here is the psychographics list you may want to add to your demographics

  • Interests related to your product (Be specific)

 

  • Personality

 

  • Attitudes

 

  • Values

 

  • Hobbies

 

  • Lifestyles

 

  • Behavior

 

 

You need to determine if your product fits to the lifestyle and preferences of these individuals. What is your target lifestyle? What features of your product you think are most appealing to your target demographics? You can have the Monkey Survey for this.

 

Whether you are planning to launch a product or setting up a blog, you still have to identify and determine your target market. It would be a disaster if you don’t have a clue who your market is and blindly target everyone of your content. Do not assume anything and don’t take this information for granted.

 

The simplest way is to craft a customer persona and back your choice with research. One thing for sure, building a personal brand is useless unless you build around the right audience. If you don’t ignore this process, then you will experience more success.

 

The cliché in the world of relationship is to give to the people that you want to connect with. Focus on the motivations of your target audience. Know the reason what others want from you. In life and business, when you help people achieve their goals, they are more likely to help you achieve yours.

 

Connect with the person that will pay you, the person that influences the person that pays you, and your supporter. Refine your target audience and lay out the path to your ultimate goal. As you build their profile, you will tend to get inside their head and figure out their motivations, so you can develop a very efficient and effective game plan.

 

RELATED TOPICS


 

Market segmentation targeting and positioning

Defining your target market so you can determine its buying behavior is rather difficult. Just figure out who has a need for your kind of product or service.

 

One way is to know of an issue or a problem related to the use of your product that customers are not able to solve and still finding solutions to it. Build a picture of this type of customer and then group them or segment them according to your classification, such as location or postal codes.

 

Ask yourself what they will gain from buying your product. With particular types of individuals in certain geographical locations around tight market sectors, you can surely know the difference between logically choosing just any market and specifically selecting a market segment.

 

The process of knowing to whom and when to enter a specific market segment can bring in more sales income for you. Determine what specific needs your product can fulfill in a specific market segment.

 

Once you have developed a complete profile of your target market segment using target market segment profiling techniques, you can start developing a good marketing and launch strategy in approaching this segment.

 

In selecting potential target markets, you should at least make it easier for you, such as doing market segmentation identification based on easily identifiable geographic or demographic variables.

 

Select the segment that promises profit potential, stability, and accessibility. Your target market should be easy to reach at an affordable cost, so you can pattern the marketing strategy accordingly.

 

A big target market is not that necessary. You can choose a small one where you can generate a large sales volume. The attractiveness of the market segment lies in its growth possibilities and promise of long term profitability.

 

Intense competition can be a nuisance and a definite destruction to your marketing budget. When a potential market is not accessible, consider the cost of reaching the market including the efforts.

 

 

Here are five simple rules in helping you identify the market

  • Be specific

 

  • Think big

 

  • Be realistic

 

  • Identify multiple options

 

  • Make a comparative cost analysis

 

 

Select the right size of the target market segment that can generate sales and augment profitability with cost effective means. Make sure they demonstrate the behavior of becoming heavy product users.

 

Make sure you can break through them and influence their buying decisions. In short, impact their buying behavior. Build your store for the right audience. Efficiently use your resources to impress and attract the right customers.

 

Go to Startup Business Plan 4

Go to Startup Business Plan 6

About Shirley Chio

I am Shirley Chio, a Virtual Assistant Philippines and a digital marketing/ social media assistant who has been blogging since November 2006 as a hobby. I blog my life, I blog my travels, I blog my food, and I blog ME! I can't keep myself anymore, I want to talk ABOUT ME! If you find this intro crazy, just laugh, it is good for you.

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