Learn identify target markets for marketing your product.
Locating market segments and identifying target markets is an important part of selling your product as effectively as possible. Business owners need to understand their market in order to target that market and make sure the right people know about and want to buy the product that is being sold. To locate the market segments and identify the target markets, the business owner needs to spend some time researching demographics and knowing reach the right ones.
Instructions
1. Identify the product you have to sell. Consider it carefully, and recognize who would be interested in this product and why. Think about the person for whom the product was designed. Be as specific as possible: The more you can narrow your market segment, the easier it will be to focus on this target market initially. Know what makes your product exceptional and why customers would want to buy it.
2. Know the specifics about your competition. It is not enough to know that you have an excellent product to sell. You also must know who is selling a similar product and how the competitor is marketing it--and to whom. Take notes on such information as packaging and advertisement language.
3. Utilize demographic and geographic data to identify the variables in the market. The demographic data will help you narrow differences in age groups, interests, income level, occupation, and so forth. The geographic data will help you place the product more effectively within different areas, whether they are different parts of the country or different parts of the state. The differences represent the variables that you will have to apply in getting the word out about your product to the people who will be most interested in it.
4. Utilize market research data to provide information about customer behavior. This kind of data can help you identify the types of customers within your target market and how their shopping behavior affects company marketing and profits. For instance, certain companies recognize that customers look into and purchase new products in part because they trust the company name and are loyal to the company products. Other companies recognize that their specific customers prefer a certain quality in the products, so the companies take care to focus on the features of the product.
5. Set up a focus group to introduce the product to a selection of the public. Aim to invite those within your expected market segment to the focus group. The response from those who attend can help you understand what does and does not work about the product and about how you present it. Focus groups also can prevent costly mistakes in marketing or advertising.
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