Selecting a Target Market
Selecting a target market involves a lot of questions. Which types of customers should you try to attract to your business? Where should you focus your marketing and advertising? Which groups should you pursue?
You must define a target market because if you 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 isn’t customized 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. So, decide on which group(s) it makes the most business sense to spend the most time and resources.
Choosing a target market means deciding which type of customer to pursue. That doesn’t mean you won’t take money from customers who don’t fall into this group. You just don’t actively seek these customers.
Review this module if you want to learn about:
- Determining which type of customer to target or to seek in order to create a niche market.
- Creating customer loyalty
- How to shut out the competition through product/service customization.
Topic Objective: To demonstrate how to discover and evaluate available target markets.
Your Outcome: A decision about your target market and a plan to focus on it.