Tag: target market analysis

target market analysis

How Target Market Analysis Can Boost Your Business Growth

Whether you’re a start-up or a well-established company, it is becoming vital to reinvent your traditional marketing strategies and incorporate new approaches to target different customer segments. Also, focusing on the right channels to reach the target customer base and attaining a wider understanding of the company’s target market is becoming imperative to gain a leading edge in the market. This is where the real power of target market analysis comes in. Leveraging target market analysis can help companies determine the target customers form a pool of customers to whom you would want to sell your products or services. In this article, we’ve listed out four major benefits of leveraging target market analysis.

Benefits of Leveraging Target Market Analysis

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Importance of Target Market Analysis for Businesses

#1: Reach the right audience

As a marketer, you’ll always attempt to market your products and services to a large customer base. But, this can result in wastage of marketing budget and resource as you’ll be marketing to consumers who are not interested in what you have to offer. In this context, identifying lucrative customer segments and creating personalized marketing strategies can help you to efficiently utilize your marketing budget. This is one of the major benefits of leveraging target market analysis. For instance, with millennials becoming the generation with more buying power in the United States, it’s becoming imperative for major companies in the United States to identify their unique needs and demands and devise personalized strategies to attract this segment of customers.

#2: Identify niche market segments

In today’s competitive marketplace, rather than trying to reach a large audience group, focusing on niche market segments can help achieve maximum profitability. Target market analysis helps businesses to identify the needs and requirements of niche customer segments, tailor products in the right way, and communicate efficiently with the target group. Furthermore, target market analysis also involves conducting target market segmentation analysis, which makes it easier for businesses to serve customers with similar needs and requirements together.

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#3: Creating cost-effective strategies

Once you understand your target market, you can make well-informed business decisions on media allocation. Consequently, you can create personalized promotion strategies to lure targeted customers. Furthermore, constantly tracking marketing performance and conducting A/B testing can help you tweak your marketing plans when required. This will eventually enhance the return on marketing investment.

#4: Managing customer needs and expectations

Target market analysis helps businesses to efficiently meet the needs and demands of their customers by tailoring products and services for them. By efficiently managing customers’ expectations, businesses can achieve huge profitability and outpace the market competition. Furthermore, target market analysis helps businesses in devising target marketing strategies through which businesses can arrive at a decision on whom to direct their marketing and sales efforts to achieve maximum savings.

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Want to know in detail the steps involved in a target market analysis? Read our article here: Roadmap to target market analysis and strategic planning

Roadmap to Target Market Analysis and Strategic Planning

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Roadmap to Target Market Analysis and Strategic Planning

Target Market Analysis and Strategic Planning

What is target market?

A target market also called as a target audience refers to a pool of customers or potential customers to whom the brand wants to sell their products and services. Target market only includes those customers in a market that a company wants to target, it does not involve the entire population of a particular market. Focusing the selling and marketing efforts on the customers in the target market saves the business time and money that would otherwise be spent on customers who are not potential buyers for the company’s products/services.

Target market example

Take the instance of a company dealing with lawnmowers and other maintenance equipment. Only a certain percentage of people in a market would show interest in buying such products. In most cases, this would include adult homeowners. This becomes the target market for the company. Efforts must be made to gather as much information as possible about potential customers. In this case, it includes their age, place of residence, and the type of home they stay in. It is also essential to keep tabs on factors including when they shop, the competitors in the market, and also the type of media consumed by the target audience.

Which is your target market and who are your target customers?

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What is target market analysis?

A target market analysis is a study used to analyze and identify the target customers and their needs. Leveraging target market analysis will enable companies to figure out exactly whom to market to and what to market. Furthermore, target market analysis also facilitates and marketing and communication efforts of the business. It helps identify when and what marketing channels and materials are most accessed by the potential customers of the company. But the question here is – how can this data be accurately collected? One of the best methods to do this is through personal interviews with customers. This provides large amounts of reliable data; the company can consider rewarding customers for their time and response. Another great medium to gather information is through social media. In fact, several relevant stats are available that provides information on the potential customers of the business and their demographics.

Target market analysis best practices

One of the key target market analysis best practices to follow is to focus on data rather than assumptions. While assumptions can provide a general idea relating to the audience’s needs and requirements. It fails to provide the whole picture. Consequently, businesses might lose out on opportunities and they might also invest in campaigns that do not return the desired results. Some ways to collect data for creating a target market analysis and formulating target marketing strategies include:

  • Run social media ads.
  • Track what competitors are doing and focus on their pricing, reviews, marketing positioning, and other market segments.
  • Conduct primary research including online and offline surveys, interviews, and focus groups.

How to do a target market analysis?

Target market analysis is an integral element of any business plan. This is because it is essential to know who the customers are before businesses can plan their strategies. Experts at Infiniti Research have identified six steps that are imperative for a successful target market assessment:

Step 1: Identify the target market

This step in the target market analysis involves identifying the potential customers of the business in terms of their demographics (age, gender, occupation, and marital status) and their needs and preferences. Then gather information that is more specific to the company’s products/services. This includes finding answers to questions such as the products of the company used by customers and how often they replace these products.

Step2: Divide the market

A company’s target market involves several segments. These segments can be based on demographics, geographic location, beliefs and attitudes, and purchasing behavior. In target market analysis, the segments must be divided based on such factors. It helps to reach out to customers more easily and tailor-make products/services to suit their needs.

Step 3: Undertake market research

Market research can either be taken in the form of primary research or in the form of secondary research. Primary research involves collecting information directly through observation or by interviewing the customers. Secondary research, on the other hand, involves gathering information that has already been collected by third-parties and using it as a reference to formulate strategies. Market research makes target market analysis more accurate.

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Step 4: Choose the markets

The next step in target market analysis is to choose the markets the company wishes to serve. The company may choose to serve as many markets as possible provided they are equipped to meet the demands of these markets. While undertaking this decision, companies must also consider the markets in which their competitors serve and the feasibility of operating in each market.

Step 5: Target market projections

Another key step in a target market analysis is to make use of the information gathered from market research to make projections. These projections can be related to who will buy the company’s products and in what quantities. It is also critical to consider the likelihood of repeat or loyal customers and the impact of economic shifts on the target market and sales.

Step 6: Examine the results and communicate

The last step in a target market analysis is to create a draft of the entire target market analysis based on the data collected and see how they resonate with the company’s business plan. This will also help companies to examine different markets backed by statistical data to help in decision-making. Examine the data and communicate it to the key decision-makers of the company.

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Maximizing ROI with an Ideal Target Market Segmentation Strategy

What is target market segmentation?

Target market segmentation involves determining how organizations can divide their customers into smaller groups based on characteristics including age, behavior, income, and personality traits. Product launch and marketing campaigns can be optimized by using target market segmentation strategy to reach out to the right set of customers/audience. Moreover, it also provides better response rates. An effective target market segmentation begins with a target market analysis which will correctly pinpoint the exact group of customers to choose. They help marketers define and understand specific buyer populations and leverage insights to deliver more relevant offers to customers.

Why do you need target market analysis?

Marketing or offering products/services to anyone and everyone will result in reaching out to customers who aren’t interested in your offerings. Thereby, the company would end up wasting its time and resources. Using target market analysis companies can easily determine how much the customers are willing to spend, how often they would purchase, and the strategies to adopt in order to keep up with the changing trends. A good target market segmentation strategy helps companies to maximize ROI and growth of the company. Most target market segmentation efforts are known to fail because inexperienced marketers attempt to segment a mass market based on one or two demographic characteristics. Generally, customer needs and behaviors don’t fit perfectly into one or two demographic characteristics. They depend on a variety of factors that can only be uncovered through a flawless target market segmentation process.

Steps involved in target market segmentation

Undertaking target market segmentation involves a set of steps, which include:

Identify target consumer market

The first step in target market segmentation is to clearly define the market. This means finding answers to key questions related to the customers in the target market. In-depth audience profiling will provide a comprehensive overview of the needs and expectations of the target customers in a particular market.

Divide the market

People attracted to the company’s products or services are likely to share certain characteristics. Identifying and defining these characteristics create market segments for target market segmentation. This step in target market segmentation process will help companies to refine their messaging and communication to specific customers. Developing customer personas and profile will help gather shared traits and consequently hone in on identifying patterns, gain insights into the trends, and bring in high-value customers.

Gather up-to-date and reliable data

Gathering information from third-party sources is one of the easiest ways to collect data for target market segmentation. It helps build a real-life picture of the industry that you operate in, the competition involved, and identify the potential customer base. However, knowing exactly what customers’ need often proves to be a challenging task. Companies must always keep tabs on how reliable their data is with respect to the changing customer needs and evolving market trends.

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Leverage existing resources

Data can also be gathered from existing resources rather than completely relying on information collected from third-parties. Deep-diving into available information will provide insights into the company’s history or the industry, potential customers, and even the market competition. Primary research via directly interviewing customers is also a great source to collect data. Although a little more expensive compared to other methods, primary research gives companies data regarding what the customers really want. They can also provide answers to specific questions related to the business.

Track market competition

By keeping a close watch on the competitors in the market, companies can be well aware of what their products or services are up against and what tactics have to be adopted to compete effectively. Not only can businesses identify untapped customer groups, but also target them in marketing plans.

Marketers everywhere want to use data to implement more modern customer engagement strategies. But they often find themselves fighting obstacles standing in the way of success. Discover how our engagements can help your business.

 

Include analysis in the business plan

Once the target segments are identified using the target market segmentation process, the final step in target market segmentation is to incorporate these different segments into the business plan. This helps make projections regarding who will buy the product and in what quantities. It will also aid in evaluating the possible peaks and troughs in demand.

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Market Entry Strategies: Boost Your Presence in the Foreign Markets

Expanding a business into foreign markets is usually a worthy endeavor and can open up huge growth possibilities, but it does bring new challenges too, such as unfamiliar customer behavior, unacquainted market response to products or services, universal payment methods, cultural differences, and tariffs and export fees.

Without understanding customer behavior, it becomes very difficult for businesses to offer a customer-centric and personalized experience to their customers.  Therefore, for businesses to succeed in the global market, it is crucial to have winning market entry strategies in place to review macro and microeconomic environments and assess a market’s readiness for new offerings. Additionally, companies need to do a proper market analysis to identify the potential risks that they can face in the foreign markets.

At Infiniti Research, we understand the impact that international market entry strategies can have on your business. And to help companies excel in the target market, our team of experts has provided a detailed guide to market entry strategies to help businesses break into foreign markets.   (more…)

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Mastering Market Analysis in 4 Simple Steps

Having a strong understanding of the market and the customers is the stepping stone to success for any company. Unless businesses have a clear idea of who their customers are, developing a successful marketing strategy will be nothing less than a struggle. Market analysis tools give organizations in-depth insights into their market and other factors that affect their business. Market analysis templates are designed to provide a quantitative and qualitative assessment of a market. It identifies the size of the market both in terms of volume and in value, the various customer segments and buying patterns, the competition, and the economic environment in terms of barriers to entry and regulation. Here are 4 simple steps to follow for developing an ideal market analysis template:Request Proposal

Develop an industry overview

The first step in building a good market analysis framework involves describing the industry and discussing the direction that it’s headed towards. It is essential to discuss key industry metrics such as size, trends, and projected growth. This step is quite different from a market research. Industry overview involves analyzing all the businesses that similar operations. Having a clear idea of the industry overview is also a great way to show the investors that you understand the larger landscape that your business is competing in.

Identify the target market

This is the stage in the market analysis where companies define who their ideal customer is. The factors to be listed out in this step involves the market size, demographics location, psychographics, and other general market trends. In many cases, businesses might have more than one type of customer. In this case, companies will have to undertake a market segmentation study wherein it is required to group similar types of customers into segments and describe the attributes of each segment.Get More Info

Analyze competition

Identifying the key competitors in the market is an integral element of market analysis. Market analysis tools help businesses to not only identify the strengths of the other players in the market but will also point out the competitor’s weaknesses that can be taken advantage of. In this manner, companies can differentiate themselves by offering products and services that fill gaps that competitors have not addressed. One of the best ways to understand the market competition is to talk to the prospective customers and ask them who they are currently buying from and understanding what alternate solutions are being provided by the other companies.

Pricing and forecasting strategies

The final step in building a good market analysis framework is to figure out the pricing strategy and create a sales forecast to better understand what portion of the market the company intends to capture. Factors such as the cost of production, profit margins, and the prices of competing brands should be taken into consideration while fixing the prices for the company’s offerings. The company’s forecast should reflect a realistic view of what the business intends to sell within a fixed span of time.


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