Identify your target market | business.gov.au (2024)

FAQs

How do you answer what is your target market? ›

Demographics describe your target market in terms of categories like their age, gender, employment status, education level, family structure, and income. For example, your target market could be college students who live at home, women 40–50 with a yearly income of at least $50,00, or retired men without children.

Tools like surveys, focus groups, and in-person discussions can help you understand what your target market needs, why it is (or isn't) shopping with you, and what you can do to make your offerings more appealing. You can also look at data from your POS or CRM to glean insights about your customers.

What is a target market? A target market is a group of potential customers that you identify to sell products or services to. Each group can be divided into smaller segments. Segments are typically grouped by age, location, income and lifestyle.

For example, a children's toy may have boys ages 9–11 as the target market and the boys' parents as the target audience. It may also be defined as the consumer segment most likely to be influenced by an advertising campaign. The target market is also distinct from the buyer persona.

Define your market as a group of people and the job they are trying to get done to make long-term strategic investments more attractive and provide the company with a vision for the future. The job executor uses a product or service to get the core functional job done. They are the reason the market exists.

A target customer is an individual that's most likely to buy your product. And it's a subset of the broader target market. For example, if your target market is female athletes between the ages of 13 to 25, a target customer could be female athletes in the specific age range of 13 to 16.

Why is Identifying Your Target Market Important? Businesses often operate on tight budgets. Knowing your target market(s) ensures that advertising, digital media, and promotional efforts are directed toward those who are most likely to buy your product or service, thereby optimizing your return on investment.

The three key aspects of a target market include: Demographics: Age, gender, income, education or employment status. Geographics: Primary location of your market. Personality traits: What they like and dislike, as well as where they shop and their favorite brands.

Create a customer profile.

A maternity store specializing in professional wear, for example, may identify its target customers as 25- to 40-year-old pregnant, married women in the legal, financial, and real estate industries, within a ten-mile radius of the store.

Market segmentation is the process of dividing the market into subsets of customers who share common characteristics. The four pillars of segmentation marketers use to define their ideal customer profile (ICP) are demographic, psychographic, geographic and behavioral.

How do I find my target market for free? ›

This tells marketers how frequent the potential customer of the product or service uses it. For example, if you're selling an alcoholic beverage, your potential target market may be someone who drinks on an occasional basis, which usually centers around social events and social interaction.