It appears to be very difficult to narrow your target market down when you are just about to start your own business due to the fear that you could be excluding a crucial part of your potential customer base. But if you know the art of defining your market and its needs clearly, then you will surely be able to gain more market share quickly than the present competitors.
The process of knowing your target market can help you get a good rate of return. You need not just to rely on the indiscriminate market for your rate of return on your investment but need some strategical marketing for your product in your target market. If you are unaware of this, following are the steps to follow:
1. Sharpen Your Focus
You need to prioritize your things while choosing the target market. For this, you need to sharpen your focus by following the below tips for marketing approaches:
A. Determine the needs that your product fulfills
You need to first determine the need of your product. You need to understand, what is your product meant for. For an instance, a baby product would be useful for a mother only, it would be of no use to an 18 years old teen. Do some survey and analyze the usage across various different segments of the market.
B. Use a funnel approach
You can use a funnel approach and narrow down your target audience. For example, if your product is gender specific, then you can narrow your target audience to that particular gender only. The more you move towards specific filters, the more you will get to know that who will be most interested in buying your product.
C. Emphasize primary value propositions
You also need to understand that what is the value of your product to specific people you have chosen. For an instance, if you manufacture a traveler’s bag, it would be valuable for a traveler only, rather than all the normal office going people. So draw a line on all the demographic group of people, who will be interested in utilizing your product and will value it in different scenarios.
2. Gather Data
The next step to follow after narrowing down your target audience is to gather data through a survey. Understand and analyze the objective data and then work on increasing the numbers by creating a demand for your product in the market. You can also look into your own network and ask your network people to examine your product or services. They might come up with innovative ideas, which you would have never thought of.
Your primary goal is to explain the demographic people of your choice the relation between their needs and your products or services. This will maximize your return on investment and generate you the maximum profits.