target market analysis

 

Who are your customers? Where should you be searching for new customers? What is the ideal audience for your marketing strategy? Whose problems does your product solve?

To answer these questions, you need a target market analysis (TMA).

What is target market analysis?

Target market analysis is the tool used by marketers to establish a specific group who collectively make up your brand’s ideal customer base.

TMA will find the audience most likely to develop into leads. The focus will be on finding leads which become your customers. And from those customers will come the most crucial statistic: sales.

What is a target market analysis looking for?

  • Who – a TMA will find out exactly who your perfect audience is. Their age, gender, social standing, occupation and as many other details as possible.
  • What – you will need to establish what drives your customers. Find out what makes them tick, what features of products most interest them, and what their hobbies and interests are. This information will then drive your marketing strategy.
  • When – what days of the week, month or time during the year will your audience be most likely to engage with your marketing content? If your customers are in different time zones, this will affect your marketing scheduling. Also, it will identify if your audience would rather make a one-off purchase, or buy from you regularly.
  • Where – is your target audience all local? The density of population, how urban or rural it is, and the climate of your customers’ locations may affect how you target your marketing strategy.
  • Why – a target market analysis will also look at the reasons behind your customers’ choices. For example, why customers choose your brand or why they go to a competitor instead.

Having decided what information you need, you then need to focus on how you’re going to collect it. Target market analysis is a fantastic tool if used correctly. However, data collection methods vary, with some being more effective and accurate than others.

Mistakes to avoid when carrying out target market analysis

  • Looking for the wrong data – you need to pinpoint the exact information and data required to identify your target audience. A TMA needs to find data which is specific to your brand, not generic information about the industry or sector you work in.
  • Don’t be swayed by your own bias – it is common for small business owners to gather the data they believe to be true. It is very easy to be too close to the analysis and influence the results. Both business to business (B2B) organisations and business to customer (B2C) companies can remove this risk by using a specialist agency.
  • You can’t rely on your friends – asking your family and friends to answer your survey questions doesn’t count as target market analysis. What looks like a saving in the short term could lead to even more expense repeating the process later on.
  • Avoid less dependable sources – Google may provide instant answers and information, but can you trust the data? You will need to know that all data security regulations are being adhered to. A data set randomly obtained via an internet search could include errors. There will always be the risk that data isn’t legitimate.
  • Don’t rely on just one set of data – a very narrow set of data may miss some key variations.
  • Don’t spend more than necessary – Try to avoid buying every set of data which may seem relevant to you. It can be tempting to sign up to a market research company offering amazing results, but this isn’t necessarily the most cost-effective choice.

Despite this list of potential pitfalls, target market analysis need not be daunting.

Ways of ensuring effective target market analysis

  • Understand who your customers are – having a detailed knowledge of those who are already loyal to your brand will give you a head start. As soon as you create a lead, get permission from them to their information. Learn to segment your customers accurately. Grouping your customers by similar behaviour traits drives accurate TMA.
  • Identify the problems your brand solves – your products and services provide a solution. Establish what issue is being addressed and then target the audience who need that solution.
  • Use social media – there is a deep well of data available from your social media followers. It’s particularly useful for B2C marketing strategies, where you can get vital information, such as age, gender and location from your social media networks.
  • Go to trade shows and exhibitions – a ready-made audience awaits you at an industry-specific show. Often, a sector-specific exhibition will provide opportunities to gather customer information for both B2B and B2C businesses.
  • Study the competition – if a rival brand in your sector is enjoying success, it is worth checking out their marketing behaviour. Find out how they interact with their followers on social media. Where do they advertise? Whom are they targeting? Maybe your competition can unlock a sector of audience you hadn’t considered. Have a look at their online reviews and see what is pleasing their customers (and what isn’t!).

How we can help

Data analysis is the bread and butter of Simply Media. Specialising in both B2B and B2C marketing, we can deliver a bespoke service to target your brand and identify its perfect audience. Get in touch today to discover more about our services.