Target Market is an emerging term in the Vietnamese market in recent years. Not all businesses can afford to make products and services suitable for everyone. Therefore, it is necessary to segment the market and choose the target market accordingly. So what is Target market? Why does the right target market help small businesses effectively balance competition with large corporations? You write below will help your business a lot.
1. What is Target Market?
Target market (target market) is a set of certain customer segments that businesses target.
The target market will include all the potential customers of the business. The main task of businesses is to attract and satisfy the needs of customers in them.
If you do not focus on the target market. You can lose direction in business, even lead to failure.
Currently, the demand is more and more, the requirements are higher and more diverse. Therefore, it is important to choose the right market for businesses to develop.
The concept of Target Market
2. Why is it important to determine the target market for businesses?
People often think that a good, quality product will be liked by many people. But is it really true? No matter how good the product is. It is also only useful for a certain group of people.
Instead of wasting time and money on unclear customer files. We should devote all our energies to the target market. Because of the following factors:
2.1 Target market is an important factor to perfect the product
As a producer, you always want to improve the products/services of your business. In order to better meet the needs of customers.
The target market should be as specific and detailed as possible. To capture the specific needs and future of guests. Next, we will develop our products in that direction to satisfy customer needs. Products are therefore constantly developing and improving.
2.2 Thanks to Target market, meeting customer expectations accurately and easily
Target market helps businesses deliver a viable result. As well as meet the expectations of customers. That brings great benefits to businesses.
Limit the situation where customers have unrealistic expectations with the product.
The business also has a loyal customer base. This is an important goal for businesses.
2.3 Help to increase the outstanding advertising efficiency
If you know your potential customers well and include them into the target market. That makes advertising much easier. Know all the information about the target market, that is, understand customer behavior.
- Understand what they want?
- What are their buying habits like?
- What are they interested in now?
More importantly, what is the main factor that drives them to make a purchase decision?
By the results of that search and research. Then you will be able to create an appropriate advertising message. In addition, it is easy to leave an impression on the market. The importance of target market in business is immense. It is one of the factors that determine the success or failure of a business.
2.4 Creating competitive advantages for businesses
Target market helps identify the market segment in which the business has an advantage over competitors. To better meet the needs of customers in that market segment.
Like the saying “if you compare the change in your wallet, billionaires will definitely lose to me”. Therefore, not every business is strong in all aspects.
3. Steps to determine Target Market for businesses
In today’s market, identifying the Target Market is extremely important, thanks to this, small businesses can compete with large companies by targeting a niche market.
To be able to determine the Target Market, you need to base on detailed information about the target customers and the market. The specific steps are as follows:
Step 1. Check existing customer list
How much is the existing customer check? And why do they have those options? By searching for that information, you can know the general characteristics and needs of your customers, thereby easily identifying many other similar goals that bring many benefits to the business.
Step 2. Determine the current opponent’s situation
“Knowing people know me – a hundred matches a hundred wins” so checking the current situation of competitors is a must in the 6 steps of determining Target Market.
Identify the target opponent
Examining the opponent’s situation will help you compare what are the strengths of the opponent? What have they not done? From there, it will help you create your own “path” and affirm your unique characteristics in the market.
Step 3. Detailed analysis of the company’s products/services
Before bringing their products to customers, businesses need to understand their products well. All you need to do is make a list of the products or services you offer and summarize the features and outline the benefits and drawbacks of the product/service. After providing complete information, you will promote your product in the market.
Step 4: Analyze customer demographics and psychology
Put yourself in the shoes of your customers to understand what they need. You can group customers through demographics such as: age, place of residence, gender, income level, education level, marital and family status, occupation, ethnicity, religion.
Besides demographic factors, you also need to consider some information about customers’ psychology such as preferences, lifestyle, behavior, personality, their attitude towards products/services available on the Internet. market…
Through the analysis of demographics and psychology, you will determine how to quickly receive products, build an impression to hit consumers’ hearts, or the closest communication channel to customers. your customer group.
Step 5: Reassess your decisions
To re-evaluate your decision as correct, you can ask questions and find the answers yourself, such as:
- What is your target audience?
- Do your target customers really need the company’s services/products?
- What products/services stand out for customers to make purchasing decisions?
- Is the message you convey through your marketing campaign close to your customers?
Above is everything about Target Market that we want to share. Good luck!