Are you planning on starting your own business or perhaps already have one? In any of those two cases, identifying your own target audience is CRITICAL to succeed.
Nowadays there are a lot of companies not knowing which their target audience is. Instead of doing an analytical approach, they try to reach out to everybody on a market, hoping for the best to happen. This is a big reason to why they in most cases fail. The analytical approach will always tip the odds in your favor. So, when trying to identify your target audience you have to start off by doing a segmentation. A segmentation is a process where the market is divided into different groups. How these groups are created are through a lot of different factors. Therefore, today we will go through the most basic and essential ones to know when choosing your target audience.
Age & Generation
To which age bracket do your potential customers belong? This is extremely important as people in different age groups will respond differently to how your product is designed and marketed. There are especially three different generations that a society can be divided into:
- Baby boomers, referring to those who were born between 1946-1964.
- Generation X, who were born in the early-to-mid 1960s to the early 1980s.
- Generation Y, born in the early 1980s to the mid-1990s.
Men and women’s needs and goals are often strikingly different. In a case of promoting your business in a way that fails to address these differences, you could end up attracting few people of either gender.
Lifestyle provides information about living patterns, which manifest themselves in consumers’ unique patterns of attitudes, interests and opinions. By studying people's lifestyles, you can get a deeper insight into their behaviour - how they spend their time and what they consider about different aspects of their environment.
Profession & Income
Knowing your customers profession and income should directly influence your marketing strategies. For example, people with low paid professions may be drawn to products that help them save money. Meanwhile those with jobs where they get a higher income, may respond more favorably to marketing that stresses luxury and exclusivity.
Depending on the location, people spend different amount of money on different kind of products. Those out on the countryside might spend more money on petrol as they need it to be able to get somewhere, while people in big cities might spend more money on restaurants and shopping as it’s all closer and more accessible.
Access to new technology
Access to new technology affects both the ability to gain access to information and market communication and the ability to take advantage of the benefits a product can provide. There are constantly new apps that offer new opportunities.
Usage of media
Media usage is regularly studied by institutes, universities and media agencies. This information is very important for planning market communications. Which communication channels do people take part of, what do they trust and how much time do they spend? Do people spend more time on a certain media channel, for example, listening to radio more than watching television? During the recent decades, media usage has changed radically through digitization, changed living patterns and attitudes. Consumers do more things at the same time and share multiple media in parallel.
It can be quite difficult in the beginning to think about all of these different factors when identifying your target audience. A lot of time has to be spent and sometimes it can feels like it doesn’t give you anything out of it. But hey, guess what? It is totally worth it! Eventually, this technique will make the process of finding customers more efficient. Trying to reach out to everybody isn't a good idea. In the end, you don’t want to be one of those businesses that fails. You want to succeed. So, segmentate the market and choose your target audience, period!