When was the last time you did some target market analysis? Do you know exactly who you’re trying to reach with your products and services? Have you identified how you can help them through their pain points?
Or does this all sound foreign to you?
It’s vital to know your target market. It’s an integral part of running your business. Sure, you can have a solid message but is your target market hearing it? There’s no way to know unless you can identify who your market is and how to get your message to them. Without this information, you’re practicing “hope marketing”. In other words, you’re throwing your message out there and hoping someone notices and becomes your client. Sorry to say but that process is a waste of your valuable time and skills.
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3 Reasons Why You Need to Know Your Target Market
1.You’re not Amazon so don’t try to appeal to the vast population
Amazon’s success depends upon carrying thousands of products that appeal to a wide variety of people of varying economic levels. You don’t have enough time in the day to serve the same number of customers as Amazon nor can you possibly carry thousands of products. Identify your niche and dig down deep. Just because a niche – aka your target market – may be small, doesn’t mean they won’t spend money. If you’re targeting the correct market, you’ll find people willing to purchase your services or products.
2. Save money on your advertising and marketing costs
At some point you’ll need to spend money on advertising, either on local radio stations, in local magazines, or sponsored ads on Facebook. Successful advertising, however, highly depends on reaching your target market. Again, target your niche market – as small as it may be – because they’re the ones who will benefit the most from your products and services. They are the ones who are struggling and who will listen carefully to what you have to say, all because you have the answers to their questions and the solutions to the problems in their lives.
3. Knowing your target market will help determine your prices.
Approach this from two perspectives: think about the target market you want to serve and do some research into what price points they can afford. Now think about what price you’d like to offer and determine if your ideal market can afford those prices. If you discover they can’t afford your pricing, consider offering a lower level of service or a different set of product offerings that they can afford now. This exercise can be the starting point of creating a library of products of varying price points which will attract even more people into your circle of influence.
In the end, every business needs to know and understand the demographics of their target market. For solopreneurs running on limited budgets, this information is even more important so you can spend your advertising money wisely. Discover exactly what your niche needs, what their struggles are, and how to help them overcome those struggles. In return, they will come to you when they realize you can relate and that you have answers.
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We all make mistakes. We wouldn’t be human if we didn’t. In the world of business, you’re going to make some minor boo-boos and some cataclysmic mistakes. It’s all part of the learning process. Although mistakes are going to happen, you can avoid the common business mistakes and other pitfalls that are lurking around the corner. Download my free checklist, 10 Common Business Mistakes, and avoid the false moves and slipups that even veteran entrepreneurs and business owners make.