Whether you’re designing a new product or starting a business, you wont be able to get very far if you don’t have customers. Defining your target market is an imperative part of your business strategy as it gives you a better of idea of the needs and wants that require attention.
Defining your target market means that you are catering for a specific niche. The way in which your product works, the needs it meets, and the way in which you promote and advertise it needs to speak into the specifics of your target market. Without a predefined target market, you run the risk of creating a product or starting a business that may not bring in the desired revenue. Here are a few tips on how to define your target market:
When to define your target market
Before you launch your business or product, it is imperative that you define your target market. This will ensure that you don’t spend too much time or money on an idea that has no future. Target market research should be done in the initial stages of your business plan as this will help you modify or change your ideas to suit the audience that you’ve selected. Successful business owners should always redefine their target market to ensure that they are able to continually meet the changing needs of their customers.
What kind of information will I get?
Once you’ve done your research, you can expect to harvest information that sheds light on whether your business or product is destined for success. You’ll be able to identify whether there actually is a market for your idea, the demographics of who makes up the market, and the way the market thinks, spends, and how they shop or implement their processes. This information will help you figure out the finer details of your business plan or product development.
Where do I get this information?
A large portion of the process is to chat to people, send out questionnaires, and do significant research on the internet. Search for statistics and credible research that has been done by large corporations, government entities, and universities. Questionnaires will help you connect with people, and will create a space for conversation. Ensure that you are armed with all of your facts, your product or business information, and that you are prepared for any questions that potential customers may ask. Once you have done your research, you can collate the results to create report on reactions, statistics, wants, needs, and gaps in the market. The key is to identify the type of customer beforehand so that when questioning customers you get a true reflection of your market
Note that it is just the start
While it is imperative to lay the groundwork in the form of comprehensive research, it is important to note the fact that this is just the start of the process of bringing your idea to life. Don’t get too invested in convoluted questionnaires, months of harvesting numbers, and inundating the consumer market with research surveys as this can slow you down and distract from further developing your idea. In the initial stages of your business or product plan, set time aside for your research and use it wisely.
Defining your target market can mean make or break for your idea which is why it is important to highlight this process in your business or product plan.
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