According to Startup Nation, there are a number of factors that businesses need to invest in right from the start of their business. In particular, determining what the target market is will help bring profits and business development in the long term.
What is the target market?
Target market, also known as target market, The general market includes all potential and current customers for a product or service, related to factors of accessibility, demand needs, wants, and financial resources to perform the act of exchange.
Target market is understood as the segmentation of customers into certain groups in accordance with the specific direction of each business. That is, the target market is the part of the market in which all the potential customers of a business exist and the business must attract and satisfy the need to turn them into loyal customers.
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What is the difference between target market and market
Refers to all current and potential customers for the product or service that the business provides, it is related to the factors of accessibility, demand for use, financial resources to perform the behavior exchange. The market is also a place of exchange between buyers and sellers to bring value to the parties.
Target market refers to the segmentation of customers into certain groups in accordance with the strategy and steps of each business. To put it more simply, the target market is the part of the market that includes the potential customers of that business. Businesses will have to implement a strategy to attract this group of customers and meet their needs, turning customers into loyal customers.
Importance of target market?
Many business owners make the mistake of thinking that a good and quality product will be liked by everyone. The truth is that no matter how good the product is, it is only useful to a certain group of people.
So how do you know you’re selling to the right people? Instead of wasting time and resources on the masses, you can spend all your energy on a set of potential audiences collectively known as the “target market”. If that’s not convincing enough, the following 3 reasons will clear your doubts about the importance of understanding your target market.
The best way to perfect the product
As a manufacturer, you always want to improve your products/services to better meet customer needs. But how to do when you do not know exactly who they are? Once the target market is defined in detail, the manufacturer can identify the features and add-ons desired by the customer and develop the product in that direction.
Target market makes it easier to control expectations
The target market will help businesses bring customers a feasible result and meet expectations. The product may be introduced with exact benefits in the future, which can be more effective than you think.
First, limit the situation that customers have unrealistic expectations with products/services. Secondly, businesses also have a group of customers who are really satisfied with their products/services and are ready to come back next time.
Target market to improve advertising efficiency
Obviously, knowing your potential customers well and grouping them into your target market makes advertising much easier. Get information about the target market, ie understand customer behavior, they like to read newspapers or magazines, what form of entertainment they like, what social networks they use often, and more importantly, What are the main factors that make them make purchasing decisions?
With those search and research results, you can completely create an appropriate and memorable message for the market.
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Levels of the market
Through the chart below, you can easily see that the process of customers in the potential market to turn into official customers of the business will gradually decrease, it depends on the policy and strategy of marketing approach. of the business, thereby creating trust and retaining customers, so making potential customers into official customers will be extremely difficult. more successful.
In today’s vast and ever-expanding market, audiences won’t listen unless the message makes sense to them. Understanding what your media goals are and what your target market is will give you a surprisingly compelling effect, something almost every business wants.