[error]When a service or product is developed, the first question that needs to be asked is: “Who is this for?” Businesses cannot be successful without customers and not knowing who your prospective customers are is a surefire way to go bankrupt. The following is a step – by – step guide to finding your target audience, focusing on them, and ultimately, getting them to buy your product/services. [/error]
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1. Market
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Before jumping head first into the hunt for the perfect customer for your business, consider this:
Is this for businesses or consumers? It’s important to understand which of these markets you can cater to. For example, a children’s toy store is strictly for consumers whereas an industrial cleaning company is specifically catering to businesses. There are some instances in which these lines are blurred, for instance, at a mailing and shipping service such as FedEx. It’s a service used by consumers and businesses alike – however, there are usually separate rates for these two markets when it comes to the services provided. No matter where your business stands, it’s essential to understand which market you will better accommodate and how.
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2. Audience
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This is where we get down to the nitty gritty. One common misconception is that the “niche market” is something that must be found. In fact, a niche market is something that is carefully researched and constructed. Here’s one example. LuluLemon is a very successful retailer in Canada and their target audience is predominantly: women (aged 20-40), living active lifestyles (running, yoga, etc) and with enough disposable income to pay a little bit more for work-out clothing. This may sound like the marketers of LuluLemon are just cashing in on a pre-existing group – and this is true to some extent. However, when we analyze this more carefully we see that what they were really cashing in on was a trend – yoga pants. The women that follow this trend and decide to spend roughly $60-$100 on yoga pants or hoodies from LuluLemon aren’t just going to lounge around the house in these items of clothing like they would with a less valuable brand. Instead, they are increasingly more likely to actually improve their lifestyles and become more physically active and therefore a return customer to the LuluLemon retailers. Not only do these women need yoga pants and hoodies, but they are willing to spend their disposable income on yoga mats, water bottles, and workout bags – all thanks to a smart marketing team that made LuluLemon the go-to brand for this niche market.
Related Topic: Importance Of Link Building [/framed_box]
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3. Focus
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Just because you’re able to identify a target audience or niche market, doesn’t mean that things get easier. Chances are, a dozen other businesses have already discovered this market – now it’s up to you to make yourself stand out. By focusing on how your target audience thinks, what they want, and how much they are willing to spend on it – you better your chances of success. Think about how video game developers are making their games the most wanted ones compared to hundreds of others that are essentially the same? Take the Call of Duty games for example – at it’s core it’s just another first person shooter game. However, at the time of it’s original release, this video game made it’s mark with new features like giving players micro-goals within greater objectives, allowing players to customize certain features within the game, and of course the realistic and extremely detailed graphics. These are the things that got gamers hooked and coming back for more. The creators and marketers of the game were able to really immerse themselves into who their audience was and what their expectations were for the future. Now, years later, the Call of Duty franchise keeps it’s target audience satisfied because they are focused on their audience. This franchise is constantly improving upon itself, contributing to an all new culture focused on the game, and uses intelligent marketing that often focuses on the exclusivity of game releases.
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4. Test
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A great way to determine if you’ve found your ideal target audience is to test it out. Get a focus group of people that fall into what you think will be your niche market and survey them on the product or service you’ll be providing. On the other hand it’s important to remember that spending a lot of money on a test does not mean you’ll get better results. Your test group should be inexpensive because you’re simply offering samples of your product/service and then having the focus group fill out a survey or have a conversation about the product/service after experiencing it. Another important thing to remember is the types of questions you’re asking your focus group. These are people that are literally telling you what they do and do not want, so it’s best to utilize this opportunity. Some good questions to ask are:
- What kinds of trends do you see going on in the industry of this product /service?
- How do you feel about our competitors product/service? Why do you think they are successful?
- If you could add any features to our product/service, what would they be?
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5. Execution
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Once the process of finding an ideal market, discovering a niche within that market, focusing on the niche and taking your business out on a consumer test drive are through – it’s time to get the ball rolling. After going through so much, the actual release of your product/service may seem like a daunting task. But you’ve come this far and there’s no going back. Besides, you’ve done all the research and gone back to the drawing board at least a dozen times by now. Introducing your business is no longer a risk or a roll of the dice, it’s a calculated step. If you’ve done everything in your power to make sure your business has an audience and can be maintained in the market, you can at least feel comfort in the fact that you’ve taken crucial steps towards success that hundreds of entrepreneurs fail to do and your chances of success have increased abundantly.
This was really useful!