target market
Public Domain from pixabay
 

Every business has a market. You just have to find it.

Why is finding the target market for a business so important? Its because it allows you to focus all of your energy and resources towards the best possible direction for success.

A business with no clue of its target market is like a marksman without a clue of what he/she is aiming at. How can one hit a bullseye if they don’t know where it’s at.

So how do you determine your target market?

Read below to find out…

What Is A Target Market?

Target market refers to a specific and well-defined consumer segment within the business’s serviceable market which the business wants to sell its products and services and direct its marketing efforts to.

Defining a specific target market eases the marketing decision making the process as marketers get to know about the most profitable set of customers and use most of their efforts and resources to woo them.

How To Define Your Target Market?

The shotgun approach rarely works. Given the current level of competition and limitation of resources, it is not viable to target everyone in the market and wait for the people to like your product.

Target marketing makes it easier for small companies to compete with large established companies, innovators to disrupt the market, and startups and other companies to get an advantage over their competitors.

You can follow the following steps to define a target market for your business.

  • Segment The Market: Segment your business’s serviceable market according to their demographics, geographics, psychographics, and behavioural patterns.
  • Identify Your USP: Your unique selling proposition is what differentiates you from the competitors. It is why the customers will prefer your product over others.
  • Analyze Your Customer Base: If you’re already in business, the best way to define your target market is to collect your customer data and to analyse it.
  • Analyze Your Competitors’ Customer Base: Analyse your competitors’ customer base: Who they target through their marketing efforts? Where do they sell their products?
    You can either select a similar target market or choose a slightly different segment.
  • Release An MVP: Releasing an MVP is a great practice to validate your assumptions about the target market. It is the most minimal, yet a viable product released to a few target customers to get as much feedback as possible.

Target Market Examples

Specifying a target market for your business is an essential step to remain viable. Trying to sell a hamburger to vegetarians will only lead to wastage of time, effort, and money and a poor brand image.

The industry giants dominate the market because they succeed in serving the right product and service to the right person. Here are some target market examples:

Target Market Of Facebook

The target market of Facebook has evolved along with the company. The founders targeted the college students of the United States in its initial years, which can be seen in its pitch deck too.

Facebook has now widened its target market and has positioned itself as a social media platform used mostly by middle-aged (25-34 years) mobile using adults in 157 countries.

Target Market Of Snapchat

More than 178 million users below the age of 25 (18-24), most of which are still in high school and college, preferably females, form the target market of Snapchat.

Target Market Of McDonald’s

McDonald’s targets students, employees, and professionals in the age group of 8 to 45 years belonging to low & middle-income groups and having an easy-going and careless personality.

Target Market Analysis

The target market analysis starts with yourself. You have to focus on the 5 W’s of your potential customers to select the most beneficial target market for your business.

  • Who: Start with questioning yourself about who is going to buy your product. Are they children, teens, millennials, or baby boomers? Are they males or females? Are they service classed or self-employed? What’s their yearly income?
  • What: What type of products and services do they buy now and what do they expect from it? Does your product fits their requirements?
  • When: When do they buy the product? Is it daily or rarely? When do they use the product?
  • Where: Where do they live? Where do they use the product?
  • Why: Do they buy it because it’s their need, or is it a luxury product for them?

Once analysed, you can differentiate the profitable segment from the non-profitable ones. Once you’ve segmented the market select the perfect market segment for your business if it fulfils the following characteristics.

  • Big Enough: Is the market segment big enough to make you profits in the present as well as in the future?
  • It is still growing: A big market today can be a dead market tomorrow. Always analyze the growth statistics before moving ahead and choosing the segment as your target market.
  • Not Many Competitors: Having some competitors might be beneficial for your company. But having a market full of existing established players isn’t a good market till the time you have an exceptionally well product to position yourself differently.
  • Your Product Can Fulfill Their Need/Want/Luxury:  Does your product has all that it takes to fulfil the needs of your target customers?  

Target Market Strategies

A marketer can select a single market or many markets to target its efforts to. The target market strategies can be divided into three types depending upon the number of target markets.

Multisegment Marketing

Multisegment marketing refers to the practice of targeting more than one market segment. Some companies market the same product to different segments differently, while some manufacture different product lines to cater to different market segments.

For example, selling auto parts to auto manufacturers and other finished products to the end-user is a multisegment marketing strategy.

Concentrated Marketing

Concentrated marketing refers to the practice of directing every marketing effort to a single segment of the market. For example, selling auto parts only to auto manufacturers is a concentrated marketing strategy.

Microtargeting

Microtargeting is a relatively new targeting strategy which involves isolation of the markets and collection of as much data as possible to target them in a personalized way. This strategy was used in the recent U.S. presidential elections.

Target Market vs Target Audience

Target market and target audience are similar terms which are used to denote market segments which the business wants to target to, but both the terms have different practical implications.

While target market refers to a specific and well-defined consumer segment within the business’s serviceable market which the business wants to sell its products and services and direct its marketing efforts to, the target audience is a more narrower term and refers to the specific and well-defined segment targeted by the advertisements of the product.

via Target Market – Definition, Examples, Strategies …

Although you can approach market segmentation in many different ways, depending on how you want to slice up the pie, three of the most common types are demographic segmentation, geographic segmentation, and psychographic segmentation.

Demographic Segmentation

Demographic grouping is based on measurable statistics, such as:

  • Gender
  • Age
  • Income level
  • Marital status
  • Education
  • Race
  • Religion

Demographic segmentation is usually the most important criterion for identifying target markets, which means that knowledge of demographic information is crucial for many businesses. A liquor vendor, for instance, might want to target its marketing efforts based on the results of Gallup polls, which indicate that beer is the beverage of choice for people under the age of 54—particularly in the 18 to 34 range—whereas those aged 55 and older prefer wine.

Geographic Segmentation

Geographic segmentation involves segmenting the market based on location. Home addresses are one example, but depending on the scope of your business, you could also use:

  • Neighborhood
  • Postal or ZIP code
  • Area code
  • City
  • Province or state
  • Region
  • Country (if your business is international)

Geographic segmentation relies on the notion that groups of consumers in a particular geographic area may have specific product or service needs. For example, a lawn care service may want to focus its marketing efforts on a particular town or subdivision inhabited by a high percentage of older residents.

Psychographic Segmentation

Psychographic segmentation divides the target market based on socioeconomic class or lifestyle preferences. The socioeconomic scale ranges from the affluent and highly educated at the top to the uneducated and unskilled at the bottom. The UK-based National Readership Survey segregates social class into six categories:

Social Grade Social Status Occupation
A Upper class Higher managerial, administrative, or professional
B Middle class Intermediate managerial, administrative, or professional
C1 Lower middle class Supervisory, clerical, junior managerial, administrative, or professional
C2 Skilled working class Skilled manual labor
D Working class Semi- and unskilled manual labor
E Subsistence class Unemployed, seasonal, or casual

The lifestyle-preferences classification involves values, beliefs, interests, and the like.  Examples include people who prefer an urban lifestyle as opposed to a rural or suburban lifestyle, people who are pet lovers, or people with a keen interest in environmental issues.

Psychographic segmentation is based on the premise that the choices people make when purchasing goods and services reflect their lifestyle preferences or socioeconomic class.

via Target Marketing and Market Segmentation

Audience research will help you craft relevant content, messaging, and ads. All of this can lead to higher conversion rates and better social media ROI. Of course, these are key metrics for all social marketers (and marketing bosses).

Bonus: Get the free template to easily craft a detailed profile of your ideal customer and/or target audience.

Target audience definition

A social media target audience is the specific group of people you want to reach with your social channels. They are the people who are most likely to be interested in your content, products, or services. They are likely united by some common characteristics, like demographics and behaviors.

As you develop your target audience definition, don’t be afraid to get highly specific. You can start with broad categories like millennials or single dads. But good social media audience research will allow you to get into much finer detail.

Remember: You can sell to everyone, but you can’t target everyone with all of your social content. You can’t speak directly to your best potential customers if you’re trying to speak to their kids and parents and spouses and colleagues at the same time.

How to find your social media target audience

Social media audience research isn’t complicated. It’s mainly about narrowing your focus while expanding your reach.

We’ve created a free social media audience research template to help you keep track of all the information you learn as you conduct your research.

Bonus: Get the free template to easily craft a detailed profile of your ideal customer and/or target audience.

1. Compile data on your existing customers and social media audience

Who most wants to engage with you on social media? Start with the people already buying from you, following you, and interacting with your posts. Some data points you might want to consider are:

  • Age: You don’t need to get too specific here. Focus on learning which decade of life your social media target audience is in, or their generation.
  • Location (and time zone): Where in the world does your social media audience live? This helps you understand which geographic areas to target. You’ll also learn what hours are most important for your customer service and sales reps to be online. And when you should schedule your social ads and posts to ensure best visibility.
  • Language: What language does your target audience speak? Don’t assume it’s your language. And don’t assume they speak the dominant language of their current physical location.
  • Spending power and patterns: How much money does your target audience for social media sites have to spend? How do they approach purchases in your price category? Do they have specific financial concerns or preferences you need to address?
  • Interests: What does your target audience like to do? What TV shows do they watch? What other businesses do they interact with?
  • Challenges: What pain points is your social media audience dealing with?
  • Stage of life: Does your social media target audience include college students? New parents? Parents of teens? Retirees?

B2B companies should also consider:

  • Size of business: What kinds of businesses buy from and engage with you? Are they start-ups or enterprise-level brands?
  • Who tends to make the buying decisions: Are you targeting the CEO? The CTO? The social marketing manager?

Social media analytics provide much of this information. Facebook Audience Insights can be particularly helpful.

Your own customer database can also provide a wealth of information. You can’t assume that your overall customer demographics will match your target audience for social media sites. But understanding who’s already buying from you can help you understand who’s most likely to be interested in your social channels.

If you’re not already, now would be a great time to incorporate UTM codes into social posts, either manually or using a social media management platform like Hootsuite. This will allow you to gather information about who clicks on your content using Google Analytics.

Once you have UTM codes in place, open Google Analytics. Audience Insights provides valuable demographic information about your most engaged social media audience.

2. Use social listening to find conversations about your brand

Social listening is a key way to uncover conversations about your business, your industry, and your products. Monitoring relevant keywords and hashtags reveals what people are saying about you and your competitors online, even when you’re not tagged.

Reaching out in response to these social posts is a great way to find your target audience on social media, even if they’re not yet following you.

You can also use social listening for deeper social media audience research. As you monitor keywords and hashtags, you may uncover other relevant hashtags your audience uses. You can then test adding these hashtags to your social posts to extend your reach to more relevant users.

3. Research which social channels your audience uses

Now you have a sense of who your audience might be and what they’re talking about online. So it’s time to find out where they already spend their time on social media. There are a couple of tools you can use to find this information.

Hootsuite Insights Powered by Brandwatch

Enter a combination of relevant terms for your business in the search bar. Using Boolean logic, you can get quite detailed here. Then scroll down to see which are the top sites, hashtags, and authors for your search.

Keyhole.co

Start a free trial or log into your account at Keyhole.co to access this powerful research tool.

  1. Enter a relevant hashtag you uncovered in the previous step. A hashtag that worked well for a competitor’s campaign would be a great choice.
  2. Scroll down to Top Sites to see which social networks are among the most popular referring domains.

Google Analytics

Check Google Analytics to see which social networks appear in your referral traffic report.

If you’re using UTM parameters, you can also see which social posts are driving the most traffic to your site. If you notice your Twitter posts drive way more traffic than your Facebook posts, this is likely a clue that your audience is more active on Twitter.

4. Check out the competition

Odds are, your social media audience overlaps with that of your competitors. So it’s worth checking out what they’re doing so you can benefit from the lessons they’ve already learned. Are they reaching segments you hadn’t thought to consider? How are they positioning themselves?

Here are a couple of helpful tools:

Buzzsumo

In the Buzzsumo.com search bar, enter a relevant keyword for your industry. (Note: You can enter a couple of searches for free, but beyond that you’ll need to start a free trial or sign up for a paid Buzzsumo account.)

You’ll see a list of the top shared content across social networks, including engagement data. Look for patterns. What formats and channels have worked well for your competitors?

If you’ve started a free trial or have a Buzzsumo account, go to the Content Analysis tab. You’ll find a breakdown of the most popular social media networks in your niche.

Search streams

We talked about search streams for monitoring keywords and hashtags above, but they’re also a great way to keep an eye on what your competition is up to.

In your social media management dashboard, set up streams to monitor your competition’s social posts and look for patterns in hashtags, post type, and content strategy.

To dig deeper, check out our step-by-step guide on how to do competitor research on social media. It walks you through the best ways to use social tools to gather competitor insights.

5. Understand what your target audience wants from your social channels

First, you need to make sure you have a rock-solid understanding of how your product or service makes your audience’s life:

  • better
  • easier
  • or just more interesting.

Does it solve their challenges? Address specific pain points? Help them meet their goals?

If you don’t already have a clear list of the benefits of your product, it’s time to start brainstorming now. Creating benefit statements automatically involves stating some basic information about your target demographic.

For example, in this IKEA post, features of the advertised furniture might be that it is small, inexpensive, and functional. But the benefit is that it can help you make a comfortable workspace in even a small home:

Next, start to think about how you can create value for your audience through your social channels. Some key questions to consider:

  • What are your audience’s main purchasing barriers, and how can you help overcome them?
  • Where are your followers at in their buying journey? Are they researching or ready to buy? Looking for reviews?
  • What kind of content does your audience tend to engage with?

If you’re having trouble figuring out exactly what your social audience wants to see on your social channels, you could always ask them.

SurveyMonkey has a free template for a social media audience research survey. Use this template to find out which social networks your audience prefers and their content preferences. You can link to your survey directly from a social post, like Amsterdam Marketing did here:

4 target audience examples from real brands

1. The Limited

The general principles for defining your target audience go back to the earliest days of marketing. Here’s how fashion retailer The Limited defined their target audience way back in their 1979 annual report (as cited in the textbook Retail Marketing Management):

“The Limited’s target market is the 16- to 35-year old female. She is educated, affluent, gregarious, fashion-oriented, and more often than not, she is a working woman who lives in or near a major metropolitan area.”

The principles for creating a target audience definition have not changed much since that statement was created 40 years ago. (Although the brand would probably phrase it slightly differently today.) Parent company Belk still clearly targets the audience The Limited defined back in the ‘70s.

Meet Ashley, Syeria & Anna, #WomenWhoGlow at the Belk home office on #InternationalWomensDay and every day! ✨They’re proudly wearing our #YouGlowGirl charitable graphic tee by The Limited. 100% of proceeds will be donated to Girls Inc. Shop now. https://t.co/RKBhpXmwE3 pic.twitter.com/qpadlOtNGH

— Belk (@belk) March 8, 2020

What has changed is that you now have so many tools to help you conduct social media audience research.

Bonus: Get the free template to easily craft a detailed profile of your ideal customer and/or target audience.

Get the free template now!

2. Zipcar

Let’s jump ahead a few decades. Here’s Zipcar’s brand positioning statement, as cited in the classic marketing text Kellogg on Marketing. The first part of the statement defines the target audience:

“To urban-dwelling, educated, techno-savvy consumers who worry about the environment that future generations will inherit, Zipcar is the car-sharing service that lets you save money and reduce your carbon footprint, making you feel you’ve made a smart, responsible choice that demonstrates your commitment to protecting the environment.”

Notice that Zipcar is not targeting all residents of a particular city. They’re not even targeting all the people in a given city who don’t own a car. They’re specifically targeting people who:

  • live in an urban area
  • have a certain degree of education
  • are comfortable will technology
  • are concerned about the environment

These are all interests and behaviors that Zipcar can specifically target using social ads. They also help to guide the company’s overall approach to its social media marketing strategy. That’s clear in this thread about sustainable habits for World Environment Day.

We’re challenging you to adopt just one sustainable habit that can have a big impact on our environment. Here you’ll find some ideas that you can quickly and easily fold into your current lifestyle. 🍃🌱 #WorldEnviornmentDay

— ZipcarUK (@ZipcarUK) June 5, 2020

3. Tourism Australia

You might not need to include all the demographic characteristics (like age and gender) in your target audience definition. In some cases, especially for social ad targeting, it can be more important to focus on the behaviors and motivations of your target audience.

Tourism Australia defined its target audience as:

“High value travelers who are motivated by what [Australia has] to offer and are most likely to choose Australia for their next holiday or business event.”

This target audience statement may seem a little broad, but Tourism Australia dug deep into the data to further define their audience. For example they know that their target audience:

  • regularly travels long-haul
  • is driven by food and wine, aquatic and coastal, and nature and wildlife experiences
  • plans longer trips exploring more of the country

They also explored the reasons their target audience travels. These include:

  • seeking local experiences
  • learning about the world
  • visiting “fashionable and cool” destinations

Then they took it one step further. They analyzed the data to craft definitions of the target audience in each of their top geographic markets. They even learned how far in advance of a trip visitors are likely to book.

4. GANT

The lifestyle and sportswear brand GANT defined a specific target audience of “25-45 year old male and females with university degrees, cosmopolitan lifestyles, and a hunger to explore and grow.”

With this audience in mind, they created a digital marketing strategy based around a YouTube series. Called “Couple Thinkers,” it features celebrities and inspirational figures.

They promoted the show on their social channels and partnered with Esquire UK to extend the content to an even wider audience.

How to reach your target audience on social media

Once you’ve found and defined your social media target audience, use these tips to connect with more of them.

1. Lookalike audiences and ad targeting

GANT expanded the audience for its YouTube series using lookalike audiences. They based those audiences on both customers and subscribers.

Lookalike audience targeting is one of the most straightforward ways to reach more of your target audience on social media. Lookalike audiences share characteristics and behaviours with people who already interact with your brand.

Don’t have a customer or subscriber list yet? You can still use precise targeting options to target social ads. You’ll then reach exactly the audience you defined during your research.

If you’re targeting more than one audience, you can target your ads so that each audience sees the content most relevant to them. For example, the NHL uses geographically targeted ads for team memorabilia.

Screenshot of NHL targeted social media ads
Source: 
NHL via Facebook Ads Library

Make sure you structure the content of the ads to appeal to exactly the audience you’re targeting as well. Ask yourself: Does the language speak exactly to the market you have defined in an appropriate voice? Do the visuals make sense in the context of your target market?

2. A/B test paid and organic content to maximize reach

As you focus on reaching your target audience for social media sites, you may need to adjust your organic and paid social content strategy .

Use the information gained during your social media target audience research to begin to tweak your:

Using A/B testing, you can refine your content over time as you learn exactly what works best.

3. Revisit your audience research as needed

The results of your A/B testing may provide additional insight you didn’t have when you first created your target market statement. Be sure to incorporate any lessons you learn.

Revisit your target audience definition regularly. Make sure it still accurately describes the people you most want to reach on social media. While The Limited’s target audience definition has remained effective for 40 years, that won’t be true for all companies.

Your target market could change over time. For example, back in the 1980s, Atari marketed its gaming console to kids.

Today, Atari targets the same people who played its games back in the 1980s. But those people are now adults who view the Atari brand not as a cutting-edge gaming system, but as a nostalgic part of their childhood.

Use Hootsuite to better target your audience on social media. Create, schedule, and publish posts to every network, get demographic data, performance reports, and more. Try it free today.

Sign Up

 

via How to Find and Target Your Social Media Audience (Free …

 

» Get a Covid-19 Small Business Bounce Back Kit