Selecting a Target Market
Which types of customers should you be trying to attract to your business? Where should you be focusing your marketing and advertising? Which groups should you pursue? You’ll ask yourself these questions as you decide on your specific target market.
You need to define a target market because if believe your product or service is good for everyone, you business is more than likely to fail. Here’s why: A product or service that’s good for everyone, means that you haven’t customized it to be perfect for anyone.
Your customers’ demands are all different, of course, but customers who share certain things in common will have similar demands. The more completely you meet this groups needs, the more likely they are to buy from you and the less likely they are to leave you for a competitor. You must on which group(s) it makes the most busiess sense to spend the most time and resources.
Choosing a target market means deciding which type of customer to pursue. That’s not to say you won’t take money from customers who don’t fall into this group. It just means you aren’t actively seeking these customers.
Use this module to determine which type of customer to target, or to help you capture a niche market. You’ll also learn about creating customer loyalty and about how to shut out the competition through product/service customization.
Topic Objective: Learn about how to discover and evaluate your available target markets.
Your Outcome: A decision about your target market and a plan to focus on it.