Is your target market on target

Is Your Target

Market on Target?

Research Edge

June, 2013

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)

Understand your product

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?

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….

Define your niche

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?

Who are your competitors

targeting?

Is your target market the same or

different than your competitors? If

different, how so?

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?

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).

Refining the Target Market

Do you sell to businesses (B

to B) or individuals (B to C)?

If B to B -

Industry

Size – revenue or employees

Years in business

Headquarters vs. branch

If B to C -

Geographic scope

Demographic characteristics

Psychographic characteristics

Geographic scope

Neighborhood

City wide

State/region

National

International

Demographic characteristics

Age

Gender

Income level

Education level

Marital/family status

Occupation

Ethnic background

Psychographic characteristics

Personality

Attitudes

Values

Interests/hobbies

Lifestyles

Behavior

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)

How do I find all this information?

Primary

Surveys

Blogs, forums

Competitor websites

Secondary

Market research reports

Suppliers

Industry or trade associations

Create Personas or Profiles

Example

New condos for sale in the

Warehouse District

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.

Young Digerati (left) vs.

Cosmopolitans (right)

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