Defining Your Target Market

By: Rebecca McClain
Submitted: 2009-06-08 12:40:16
Print this article | Tell a friend | For publisher | Social Bookmarking
Rating:
 

When it comes to defining your target market, the world is not your oyster. As a business owner it's tempting to define your target market in general terms. You want everyone to partake of your goods and services. But, unfortunately, from a marketing perspective, no business has the money or other resources to reach the entire marketplace effectively.

Your task is to decide and prioritize that segment of the market you want to target so that you can maximize the effectiveness of your marketing dollars. Your target market can be determined by the following two general criteria:

Demographics. This is data that refers to selected population characteristics such as age, gender, race, education and income level. It can also include their marital & employment status, whether they have children, as well as specific information, such as whether they own a computer or how often they travel on business, etc.

Psychographics. This is data classifying population groups according to psychological variables, or IAO variables (Interests, Attitudes and Opinions)-- emotional and ideological beliefs. These are attributes relating to their personality, values, fears and lifestyle. Examples of words used to describe a market psychographically include feminist, macho, risk taker, value-for-money oriented, saver, etc.

Having a defined target market doesn't mean that your product or services won't have cross-over appeal to people outside of your target market. This will always be the case. For example, there are wealthy people who shop at Wal-Mart, but the company's marketing dollars are not targeted toward this group because it doesn't represent its core segment of bargain shoppers. Of course, the Wal-Mart brand (which is another subject) has long been established as a community fixture.

Get rid of the notion that you are somehow 'missing out' on sales opportunities by not pitching a big tent. Assuming that 'everyone' will purchase your goods and services will lead you to make wrong decisions about pricing and marketing strategy, which can ultimately cause your business to fail. Do your market research. You will find that there is more than enough business within your niche market. Using the criteria above determine, as closely as possible, exactly who those people are and target your resources toward them.

Based on your results, you might decide to expand your target market to include another age group, etc. But make sure your logic is based upon the set criteria and not simply your bottom line. Let your determinations be based on facts, not fear. Remember, there was a market for mood rings and pet rocks, so surely there's a market for your products and services. Your job is to identify it and build a strong business around it.

Want to achieve greater success and fulfillment in your work and life? If you have not already, check out my new book Redesign Your Reality: A Blueprint for How to Transform Your Life From Surviving to Thriving. Visit Rebecca' McClains website at www.rebeccamcclain.com to receive a complimentary copy of, "Ten Secrets to Having the Live You've Dreamed About."

Rebecca McClain is founder of Life Treasures LLC, a personal and professional development company. As an entrepreneur, author, speaker and certified life & business coach, she is recognized as an expert in personal and professional success.

Article source: Expert Articles

Most Recent Articles in Entrepreneurialism category

  • 5 Tips to Help You Find a Legitimate Data Entry Job - By: Dina Anderson
    There are several different types of data entry jobs available online. You have your telecommuting data entry jobs, your information processing jobs, order processing jobs, email processing jobs, and so on and so forth. Some of these jobs require experience and you must apply for these jobs. unfortunately, A lot of data entry work is only part time and between the hundreds of people applying for these jobs,you better make sure your resume is up to par.
  • How to Get Your Consumer Invention to Market - By: Joan Lefkowitz
    So you have an idea for an invention? What do you do now? The most successful hair accessory in history, the TopsyTail, made 100 million dollars. This did not happen by miracle or chance. The key was a well-conceived and executed plan. Following an informed approach will help you turn your invention into a bonanza of extra income.
  • Advantages of Singapore Company Incorporation - By: Daniel Seaton
    Company incorporation in Singapore offers many positive incentives. The Singapore government is well aware of its lack of natural resources and thus heavily promotes and supports the development of the service and manufacturing industries. The low corporate and personal tax rates, integrated with tax incentives and further monetary initiatives practiced by the governing bodies in Singapore highlight its appeal.
  • Doing Business in Singapore - By: YL Toh
    There are several reasons why companies and businesses should incorporate a company in Singapore. With a low corporate tax rate and tax incentives, and its economy being very open to world trade due to numerous FTAs being concluded, Singapore allows for an efficient and effective business environment. Hence, with proper planning and structuring, Singapore is an ideal jurisdiction to do business in.
  • 5 Ways To Fight The Recession As A Small Business - By: Mitesh Solanki
    If you have been watching the news, reading the paper, or browsing the Internet, you have stumbled onto the many hopeless articles written about the recession. It seems as if everyone is depending on a financial analyst to give us the green light that things are on the up and up.
  • Why choose Hong Kong to invest in? - By: YL Toh
    There are several beneficial reasons for entrepreneurs to incorporate a company in Hong Kong. With a free and open economy, low taxes, and a strategic gateway to the great hinterland that is Mainland China, Hong Kong provides for an efficient and effective environment for company formation and an ideal jurisdiction to do business in.
  • How To Jumpstart Your Own Business Venture - By: Janice Jenkins
    useful tips can go a long way in helping you get started
  • Can You Make Money from Home as an Entrepreneur? 10 Ways to Know if You're Ready - By: Rita Canada
    Could you make money from home as an entrepreneur? As you leave behind your kids, your hopes, or your dreams for another day at the office, you catch yourself wondering if it's possible. As someone who does successfully make money from home and is enjoying the lifestyle I dreamed of, I have come up with 10 ways to know if you're ready to make the transition and become a successful entrepreneur.
  • The New Valley - Tech Solutions for all - By: Darwin Redshield
    Even during this recent economic recession, Silicon Valley entrepreneurs have proven resilient, continuing to produce a steady stream of innovation. In fact, the start up mentality was built for the trenches. Unlike the gluttonous tech companies at the turn of the century, today's start up thrives on low cost innovation, minuscule resources and minimal encouragement.
  • Tech Investment Trends: Private Equity Bullish on Biotech, Clean Tech and Social Media - By: Jeff Fox
    Venture funding has slowed considerably over the past year, but there are still opportunities for emerging technology companies to secure funding. While VCs are unquestionably more selective and doing far fewer deals, they will soon be ready to get off the sidelines to support companies in promising sectors.