Defining your target customer base via a detailed target market analysis should be a key step before finalizing any product, service or business model decisions. Follow this process when creating your own analysis.
Start by outlining potential buyer personas based on demographics like age, gender, income level, geography, family status and so on. Plot major segments on a matrix. Identify common psychographics between groups too, like attitudes, interests and values.
Now analyze broader market data relevant to your offering mix through both primary and secondary research. Conduct focus group interviews and social listening. Acquire market research firm and census reports detailing consumer behaviors, pain points and habits within your prospective space.
Map consumer personas against market data to identify key areas of demand and related buyer habits for each segment. For example, highlight how 65+ retirees in the Southwest spend on hobby supplies differently than 25 to 35-year-old new parents in the Northeast.
Next, factor in your competitive landscape. Are other providers targeting and fulfilling the needs of any segments exceptionally well already? Identify gaps or consumer friction points competitors are missing. Opportunities often exist around emerging segments, new use cases, unique needs or regional accessibility gaps relative to incumbents.
Narrow your prioritized target market list down by realistically assessing your ability to serve each with strengths like custom offerings, pricing advantages, specialized access or superior end-user experiences vis-a-vis larger rivals. Commit resources accordingly in capabilities building across sales, marketing and product development to match top targets only.
Now craft crisp, memorable target market descriptions that combine demographics, psychographics, behaviors, pain points and your differentiated value proposition to each in easy-to-reference boxes. Bring these to life internally through humanized storytelling highlighting real-life case studies.
Continually test assumptions and refine analyses with ongoing customer feedback loops. Listen, learn and double down where genuine enthusiasm exists within prioritized groups. Pivot offerings adjusting to shifts if early adoption fails to materialize with others.
Start by outlining potential buyer personas based on demographics like age, gender, income level, geography, family status and so on. Plot major segments on a matrix. Identify common psychographics between groups too, like attitudes, interests and values.
Now analyze broader market data relevant to your offering mix through both primary and secondary research. Conduct focus group interviews and social listening. Acquire market research firm and census reports detailing consumer behaviors, pain points and habits within your prospective space.
Map consumer personas against market data to identify key areas of demand and related buyer habits for each segment. For example, highlight how 65+ retirees in the Southwest spend on hobby supplies differently than 25 to 35-year-old new parents in the Northeast.
Next, factor in your competitive landscape. Are other providers targeting and fulfilling the needs of any segments exceptionally well already? Identify gaps or consumer friction points competitors are missing. Opportunities often exist around emerging segments, new use cases, unique needs or regional accessibility gaps relative to incumbents.
Narrow your prioritized target market list down by realistically assessing your ability to serve each with strengths like custom offerings, pricing advantages, specialized access or superior end-user experiences vis-a-vis larger rivals. Commit resources accordingly in capabilities building across sales, marketing and product development to match top targets only.
Now craft crisp, memorable target market descriptions that combine demographics, psychographics, behaviors, pain points and your differentiated value proposition to each in easy-to-reference boxes. Bring these to life internally through humanized storytelling highlighting real-life case studies.
Continually test assumptions and refine analyses with ongoing customer feedback loops. Listen, learn and double down where genuine enthusiasm exists within prioritized groups. Pivot offerings adjusting to shifts if early adoption fails to materialize with others.
