Your company’s target market is the set of customers it chooses to serve among potential customers. Companies operating in more than one region or sector generally have more than one target market.
Selecting these target markets allows the company to focus on opportunities that offer the best chance of success and profitability. This is important because no business can please everyone.
There are a few ways to select your target markets. Here are 2;
- Choose what you want to produce or sell, establish our production costs / related costs, and then do a market study of the product you want to sell.
- Choose your customer base and then create product lines appropriate to it.
In reality, there are no good or bad ways to target it, but doing it right can have a direct impact on your profitability and the amount of work to be done every day.
Here are some selection criteria to keep in mind:
Who is my product / service for?
- To men, women? li>
- To which age group? li>
- Which regions? (Cross-country skis are not necessarily the best product for Florida! … Although … it may be a niche market!)
What is my product for?
- This sounds logical, but sometimes a market study can make you discover an unknown and underdeveloped market. There is the classic example of selling refrigerators to Eskimo, but did you know that they use fridges and freezers unplugged on the outside to prevent frostbite from their food?
Do not forget!
- It is essential after choosing your target market to find out if it is a market that is already saturated in your area! It is very difficult to start a business that already has hundreds of direct competitors as neighbors.
So, choose your clientele and develop it, while keeping an eye on the possibilities that might come your way!