Understanding your target market of potential customers is vital to starting a business that really sells. And making assumptions about what those potential customers want is a dangerous game to play, so it’s important to do some digging and learn straight from the horse’s mouth what their interests and needs are through market research. You might be surprised by what you learn!
Some of the key things you need to learn about your target market include:
- What are the demographics of your target customers (i.e. age, gender, occupation, household income, geographic location)?
- How big is the market right now (annual revenues your competitors are currently generating, or your projection of potential customers and market size if you are introducing a new product)?
- How big is the market projected to be in five to ten years?
- Are there specific groups (segments) within your target market on which you want to focus some special marketing attention?
Your first stop for information about your target market should be your local library and the U.S. government. Many of the sources from which you derive your competitive market analysis are also great sources of data on the people you hope will buy your product or service.
Beyond publicly available research, the primary means of gathering invaluable, specific information about your target audience are by conducting surveys and focus groups, and you can do both for a lot less than you think.
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