#13 Defining your target market

A  well defined target market gave a business direction and purpose.  This post will show you how to define your target market with an existing business.  These steps are simple and every business owner should seek to define their target market. According to Inc.com this is how you define your target market.

1. Current customer base
• Look at your current customer base and look for common characteristics and interests among them.  Look at the ones doing the most business, chances are persons with similarities can be potential customers.
2. Look at your competition
• Who does your competition target, who are their current customers.  Consider who they are missing and target those.
3. Analyze your product/service
• List the features of your products or services and next to it list the benefit it provides.  Once you have listed the benefits make a list of people who have a need that your benefit fulfills. 
4. Specify Demographics of your target
• Figure out who has need for your product or service and who will most likely buy it considering these factors:
• Age
• location
• Gender
• Income level
• Education level
• Marital status
• Occupation 
• Ethic Background
5. Psycho graphics of your Target Market
• These are more personal characteristics of a person such as:
• Personality
• Attitude 
• Values
• Interests/Hobbies
• Lifestyles
• Behavior
• Once completed see how it fits into your targets lifestyle.
6. Reflect on your decision
• Now that you have decided on your target market, consider the following questions:
• Are there enough people who fit my criteria?
• Will my target benefit from my product/service? Will they see need for it?
• Do I understand what drives my target to make decisions?
• Can they afford my product or service?
• Are they accessible? 

At this point you should have a thorough understanding of who your target market is and what benefit your company brings to them. Stay tuned for my next post on how to reach your target market.