A feature is a characteristic of a product/service that automatically comes with it.įor example, if a toothpaste has a stain-removing formula, that’s a feature. To do this, identify your product or service’s features and benefits. The first step in identifying your target market is understanding what your products/services have to offer to a group of people or businesses. Step One - Identify Why A Customer Would Want To Buy Your Product/Service Identify Why A Customer Would Want To Buy Your Product/Service.Here are three steps to follow when identifying your market: Middlemen or intermediaries, such as wholesalers and retailers, who buy finished goods and resell them for a profit. Individuals, groups or organizations that purchase your product or service for direct use in producing other products or for use in their day-to-day operations. Drug and grocery items are the most common types of consumer products.
Individuals and households who buy goods for their own use or benefit are part of the consumer market. There must be ways of talking to your target audience.Ī market is simply any group of actual or potential buyers of a product. In addition, your target market needs to be reachable. Once your target market is defined through your knowledge of product appeals and market analysis, and can be measured, you should determine whether that target market is large enough to sustain your business on an ongoing basis. However, a target market of firms within a radius of 20 miles, with annual revenues of $10 to $25 million and a need for four-color printing runs of approximately 5,000 pieces is a clear definition. The market should be measurable, sufficiently large and reachable.įor example, a printer’s target of mid-sized firms with mid-size projects is not a measurable definition. Targeting your market is simply defining who your primary customer will be. This is a difficult, if not impossible, bridge to cross. We’ve all heard a business owner say, "My product is terrific! It appeals to everyone." Many of us have also seen small businesses that try to be all things to all people. If you don’t know who your customers are, how will you be able to assess whether you are meeting their needs? Since success depends on your being able to meet customers’ needs and desires, you must know who your customers are, what they want, where they live and what they can afford. Your energies and funds then can be spent more efficiently. It is critical that you first determine or clearly identify your primary market. In order to market your product or service, it is imperative that you tailor your marketing and sales efforts to specifically reach the segment of population that will most likely buy your product or service. WHAT YOU SHOULD KNOW BEFORE GETTING STARTED This Business Builder will take you through a step-by-step process that will help you identify specific target markets within your industry and provide you with the know-how to create a customer profile. Washington State Department of Commerce.Michigan Economic Development Corporation.