How To Determine The Target Market For An Accurate Marketing Strategy

Illustration of determining target market (Unsplash/Jason Goodman)

YOGYAKARTA - Each type of business has its own target market. A can be said to go well when the target market is clear and precise. So before starting to run a business, you need to determine the target market first.

Determining the target market is needed to develop a precise and effective marketing strategy. This step must be done by both novice businessmen and prospective entrepreneurs. Without knowing the target market, your business will run without direction or purpose.

One of the problems that are often experienced by business people, such as SMEs or SMEs, is not knowing the right target market. This condition will cause the product to not sell, sales to lose money, so the business does not develop. Large capital or a good product in a business will not succeed without the right target market.

How to Determine the Target Market

Determining the target market is one of the keys to making business progress and success. The target market is the group of consumers who are the target of selling business products. By determining the target market, you can know who your customers are or the categories of people who need your product.

Steps to determine the target market need to be done at the beginning even before starting a business. Here are some tips to determine the target market.

Analyzing Market Segmentation

To determine the target market for your business, make sure you have chosen the products to be sold. Your business product will be the basis for knowing who your customers or market are.

There are several steps needed to identify your consumer or market. You need to do a market segmentation analysis or map out your business target consumers. Market segmentation is divided into several things, namely demographic segmentation, psychological segmentation, and geographical segmentation.

Demographic segmentation is a way of grouping the target market based on demographic information, including determining age, gender, and income level. While psychological segmentation is a method of mapping the target market based on interests, lifestyle, to personality.

While geographic segmentation is a way of grouping target markets based on location or region, such as city, province, area code, and so on. These three types of segmentation need to be known in order to clearly describe your business target market.

Seeing the Needs of the Target Market

A business must have a goal of answering the needs of the target market. So a businessman must know what is needed by his prospective customers. Your business product must be a solution to that problem or need.

You can look for information on the needs of potential customers who are the target of selling your business. You can find out by analyzing market segmentation. In addition, you can also see consumer needs by conducting product tests. Try promoting your product or selling it directly. Responses, testimonials, or reviews from consumers can be used as material to answer the needs of the target market.

Observing Market Competition

In doing business, you do not play alone but there are many competitors who are also fighting over the market. Market competition is a challenge for business people. If you don't know the target market clearly, your business will lose to competitors.

Therefore, business people must carefully observe the market competition for their business products. Every business has its own marketing strategy, starting from the uniqueness of the product, price, features provided, and ease of purchase. From these various elements, you can learn the product sales process carried out by your competitors. In addition, you can also study the responses or reviews of product buyers.

Communicating with Customers

The easiest and most accurate way to determine the target market is through direct communication with consumers. You can find out the needs of your target market by meeting or contacting consumers, then asking them.

Now businesses are benefiting from digital technology, so they can communicate with consumers easily. You can contact consumers via chat messages, voice calls, or ask for reviews on digital platforms. You can also go directly to the field to meet customers. Ask and record what their needs are.

Those are some ways to determine the right target market for your business. After knowing the target market, then you can develop a marketing strategy for your product. In addition, you can use target market data to develop products to create new products.

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