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What is a potential market?
Your market is defined as those you wish to sell your goods or services.
If you are trying to market to everyone and everyone, it will be difficult to concentrate on your advertising efforts. Knowing and analyzing your customers’ needs will make it easier to promote your business efficiently. It can help you understand:
- In which area your customers where your customers
- Their shopping habits
- Their issues and points of pain
- The most effective ways to get in touch with them.
Use this data to customize your marketing strategy to the most profitable segments of clients.
1. Do your research on the market
Most likely, you already have an concept of the audience the product you offer or service is intended for. If not think about the kind of people would be interested in your product:
- Have a need that for your item or product could fulfill
- Are willing and able to be willing to.
Make sure you test your assumptions with market research. Market research will help you:
- Know your customers better
- Identify potential new customers
- Review your competitors
- Determine what makes you stand out from your competitors
- Verify that there’s an actual market for your product or service.
2. Segment your market
If your research indicates there’s market demand that is interested in your service or product. See whether you can segment this segment of the market.
This means dividing your market segment into smaller segments of customers by their characteristics and purchasing habits. This will allow you to more effectively target your marketing efforts.
Here are a few things to think about for each segment.
Demographics
- How old are these customers?
- Which gender do they belong to?
- Where do they reside or where do they work?
- What is the status of their relationship?
- Are they parents? If yes, at what age?
- What is their level of education?
- What are they doing to get a job?
- What is the amount they make?
- What is the language they use at the home?
Values and interests
- What are their interests?
- What are their values in their lives?
- What do they strongly believe in?
- What are their issues or points of pain?
- Where can they get their entertainment and news?
Shopping habits
- Who decides on the purchase in their home?
- What drives them to purchase?
- Are they online shoppers, or prefer to view the product in person?
- How far do they have to need to travel to purchase?
- What digital or media channels are they using to learn about new services or products?
- What other items do they purchase?
- Why should they choose products or services from you?
3. Determine your ideal customers
After you’ve identified your market segments, determine your ideal customers to each one. Write a brief description of each client, describing their characteristics and what they are interested in.
It is possible to make these profiles extremely specific. A specific target market doesn’t mean everyone else won’t be able to purchase your service or product but they’re not your primary concern.
Make use of your profiles of customers you want to target to direct the marketing effort. Define the way your service or product fits in with your target customer’s lives and fulfill their requirements. Be aware that different customers may require different items from your company.
