The aim of a business is to create and deliver value to customers on the one hand and capture value for the business on the other hand. The business that is able to balance this value equation is the business that achieves sustained success.
The first part of the value equation is to create and deliver value to customers. In order to maximise this value you need to understand your potential customers – you need to understand your target market.
A target market identifies the different groups of people and/or organisations that the business aims to reach and serve.
Customers can be grouped based on differences in needs, problems, desires, behaviours, experiences, ways of buying or any other attribute that will tell you something useful about what would be of value to them and how that value can be delivered. These customer groupings are referred to as customer segments. Understanding your customer segments enables you to better create products and services that will meet their needs and desires and to better reach, sell and serve them.
There are four questions you should ask about your target market.
1. Where are they?
Where are your clients based; is your company servicing a specific geographic location e.g. a town or even a suburb, or do you have a national or international footprint, with customers from all over the country or world?
2. Who are they?
Do you understand your target customers – their age, gender, household income, interests and likes and dislikes
3. Why do they buy?
Do you understand your customers reasons for buying the products and services that you supply? Are they buying your product because it is a necessity; something that they cannot live without, or is your product or service a nice-to-have, which your customers only purchase when they have cash to spend? People buy with emotion and justify with logic – understanding their “why” will allow you to tweak your marketing specifically to speak to their needs and desires.
4. How do they buy?
Do you understand the journey that your customers go through in their buying process, from identifying the need to making the purchase, and after-sales support? Understanding the customer journey is an important component of understanding your target market. By understanding their buying journey you can align your marketing and sales to help them along the journey towards buying and using your products and services.
Need help understanding your target market and aligning your value proposition to your target market? Contact us at email@example.com or +27 87 0929 286