Debayan Ganguly (Dev Ayan) is an MBA with 2 years of experience in B2B sales. He likes to share his learnings through blogs and videos.
How to Identify Your Business' Target Audience?
You have a product idea in mind. You have the resources to produce it. All you now need is people to buy your product. But how do you identify the people who would buy your product? How do you know your Target Audience?
To identify your Target Audience, you first need actual primary data inputs from the market. Market Research has to be conducted to know about the way the market thinks about your products, their attitudes, the segments within your market, the size and growth of each segment. Once you have good research-backed data, you need to analyze them until they can give you all your answers.
After having a significant amount of data from your primary research, you need to apply statistical tools to identify the segments in your market. You can use the Clustering Method to form distinguishable subgroups of your respondents having similar characteristics like behavior, positions, choice, aspirations, and many other characteristics. There are two methods of clustering that you can follow:
By selecting the best method, you will have groups. Now, after you have separate mutually exclusive groups, you can analyze which group would be best for your products and will be able to afford them.
Who Benefits Most from Your Products?
Before going about finding your target audience, you need to have a clear picture of your product - from product features, benefits, characteristics to price. Having a clear idea about the features, you need to ask - What are the benefits of those features to the ones your consumers will be buying?
You must relate each feature to a benefit. The difference between feature and benefit is that 'a feature' is an attribute of the product, while 'a benefit' is the solution that the consumer receives upon consuming the product. For example - '14 Mega Pixel' would be your Mobile Camera's feature, but 'Being able to click good photos' is the benefit your customers get from that camera. It is advisable to focus on benefits while communicating about your products. And use features to add credibility to your claims of benefit. For example, your message may be 'Click stunning photos using the 14 MP camera' for the same Mobile cited above. Here you are highlighting the benefit of being able to click stunning photos and have used features as proof of claim to those benefits - 14 MP helps in clicking good photos.
Coming back to the question, the data from your market research will tell you about the benefits each group seeks the most. You can then understand which segment(s) would be most benefitted by your product. Target only those segments that seek those benefits and are willing to afford the same. You can then highlight those benefits while communicating about your products to them in your marketing communications.
Where To Find My Target Audience?
Now that you have identified your Target Audience and know the benefits they are seeking, you now need to locate them and reach out to them.
Based on the demography and social class, they can be in rural or urban areas, maybe online on social media for a particular time of the day, and may prefer a selected content creator. You need to be present in the two places mentioned below:
1. Where do your customers transact?
Answering this is essential as you need to be there where your customers make purchases. If you have an FMCG product, you need to place your products at supermarkets, mom-and-pop stores, small retailer shops, etc. If you have a luxury brand, shopping malls could be your option. For software products, you need to have an e-commerce enabled website for aiding your customers in making purchases without having to let a third-party website sell your product.
2. Where do your customers hang out?
Often when the customers are at the purchase site, they have already made up their mind on what to buy. If you want them to buy your product, you need to start way before they decide to buy. You need to make them aware of your products and work your way up the ladder till their decision phase.
To increase their awareness, you need to present your products to them when they aren't explicitly looking for the product, like traveling to work, scrolling through social media, watching a movie. You can advertise your products on the billboards beside the highway, create social media advertisements, or a TVC during or before the movie.
So your products will get noticed by your target audience, and the more you do, the greater will be your brand recall during the evaluations stage.
How to Know Whether My Target Audience is Profitable?
It is imperative that your target audience has to be a profitable segment for your products. Else, all your marketing efforts will go in vain. They need to be willing to pay for your products. Now how do you identify whether they are willing to pay for your products or not?
You can either include questions about their willingness to pay in your market research survey questionnaire or analyze them from secondary sources. People may not be able to judge themselves and give correct responses as to their willingness to pay. What you can do better is observe their purchase pattern.
See if they are consuming similar products that are being sold in the market. If they are, then at what prices, and the relative sale in each price segment. This will help you identify how best to price your product.
Observe their geographical location and the factors that influence the willingness to pay. If the influencers are supporting your product's price, then you need to encash on them, otherwise, try to supersede them by highlighting the benefits.
You can make an unprofitable segment profitable by providing them the right solution for their problems. If you don't think you can do that, then it is better to leave that target audience and think about retargeting.
Watch my Video on the said topic
- HOW TO FIND YOUR TARGET MARKET?| HOW TO ATTRACT YOUR TARGET MARKET?| MARKETING LESSON| MBA TALKS - Y
In this video, I talk about Finding Your Target Market. I talk how to find the segments that will be benefitted by your products, how to reach out to them an...
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This content reflects the personal opinions of the author. It is accurate and true to the best of the author’s knowledge and should not be substituted for impartial fact or advice in legal, political, or personal matters.
© 2021 Debayan Ganguly