Bull's Eye! Defining and Finding Your Target Market

You love your product. Your mom loves your product. But 95% of the people you're talking to could care less about your business. This may be because they do not see the potential of the opportunity, they may think you're scamming them, or it may not be the right time for them to buy. But more often than not, the number one reason why people are not buying from you is because you're talking to the wrong type of person.

Targeting your market is a long process. But when done correctly, it can positively affect your ROI and turn your business or product into a success. When developing your business plan, it is important to keep your target market in mind. Therefore, you must conduct this target market research before launching your business or writing your business plan (some companies, however, may want to reevaluate their target market after they have launched):

1. Identify the solution that your product offers.
All new products or services answer a problem that currently exists in the world. Be sure to answer the question, "what solution does your product provide?" before even launching the business that you have in mind. This will not only help you to define your target market, but it will also determine whether or not your product is worth the risk.

2. Research your competition.
Who do your competitors market to? How do they market their products effectively? Who are their target markets? Look at what kind of traffic these websites are getting online by using sites like Quancast.

3. Survey your potential customers.
In order to effectively determine your target market, you must survey your potential (or current) clients and customers. When surveying and researching, ask your clients about their demographics (age, gender, education level, income level, marital status, family life, ethnic backgrounds, and religious backgrounds) and then make a customer demographic profile.

Additionally, it will be important to ask your customers about their psychographics (lifestyles [i.e., conservative or trendy], social class, opinion leaders or opinion followers, activities, interests, attitudes, and beliefs) and create a customer psychographic profile alongside your demographic profile.

4. Identify shopping patterns.
Finally, it is important to determine your target market's shopping patterns – after all, that is where you will be generating your revenue. Determine whether or not your customers like to buy online, over the phone or at the store. Will your product inspire a need for instant gratification or will your potential market be willing to wait a few days and receive the product via mail?

These four tips to determine your target market will save you money on advertising costs and will help you to see better ROI. Since you will be putting your product in front of the right people who are interested in what you have to offer, your business's chances of success can only increase.