In the movie Jerry Maguire, you might remember what the business mentor, Dicky Fox, said, “Unless you love everybody, you can’t sell anybody.” It simply stresses the importance of finding your target customers instead of selling your product to all. If you have a clear cut definition of your target market, you will be more focused and very effective in allocating your financial resources.
In addition, make sure you include this in your business plan and refrain from launching any marketing campaign until this is finalized. To do this, simply follow the steps below:
Understand Your Customers
Small Biz Unplugged has a comprehensive list of questions you need to answer to define your target market.
Assess the Profitability of Your Chosen Target market
Once you have a target market in mind, it is time to assess if they are worth your effort. Ideally, a target audience research is needed to determine the potential of a particular segment.
For now, you can start by reading secondary data from newspapers and different organizations like local SBA branch, public and university libraries, and your local Department of Commerce. The Internet is a rich source of information to guide in your evaluation.
Know the number of your competitors and try to spy on them. Check if there is a space left for you to compete and grab sizeable share. If the competition is too intense, you can always go back to your drawing board and find a more lucrative niche.