Why is it important to define a target market for your business? Originally appeared on Quora: the place to gain and share knowledge, empowering people to learn from others and better understand the world.
The development of a business depends on the factor called ‘Target Market’. People don’t buy the products they don’t need. Generalizing the consumers can harm the sales and revenue of your business. Therefore, you must target a particular segment of the audience whose needs to stimulate your product or service sale.
It is essential to define a target market for your business because it helps in three ways:
Reach The Right Audience
Understanding and identifying your target market enables you to reach the right audience. A company selling cosmetics products such as anti-aging cream for the women in the age group of 30 to 50 years should make their advertisements targeting the right audience of the proper age group in the right channels to reach them. Therefore, by defining a target market, you can find out what the entertainment they consume, what social media channels they use, what magazines or newspapers they follow, and, most importantly, what convinces them to buy the product.
Defining the target market will help you with cost-effectiveness. Now the question comes, ‘How?’. Suppose you generalize your target market and select a vast media outlet, i.e., various social media channels or magazines or newspapers or television to advertise your product. The products get a comparatively lower purchase. In that case, this will surely make no profit for your business. On the other side, if you identify a specific target market, the selection process of media outlets would be more comfortable and save you a lot of money.
Specific Product Description
Once you identify your target market, you will know how to tailor your messages to them correctly. The products should be described in a manner that satisfies the needs of the customers. To convince them that you are continuously improving your products or services as per their appetites, you should describe the key features specifically to grab their attention. And for this, you must know who and how your target market is and act accordingly.