types of target market

How To Identify Ideal Target Markets in a Post Corona World?

2 minutes

In marketing market research, one of the worst statements you can make about a product is that it does everything. People respond best to specific proposals. Then they can just say, “Yes, I need that,” or “No, I don’t.” They don’t have to think too hard about it. So, you’ll have to be specific about what you do and who your market is. You can conduct market analysis of your business as being in a space with three axes. They are, the skill you’re selling, the industry you’ll target, and the type of customer you’ll sell to.

Advantages of Market Focused Organization

If you make these definitions too narrow, you’ll end up describing too small a market, perhaps only one potential client. But if you make them too broad, you won’t be able to focus your efforts. It will take some time in the psychographic target market to get it right. But don’t worry, that will come. We’ll start with skill. At first, I recommend that you go with the things that you’re good at, have experience in, and enjoy doing. So, take me. I’m a Product Manager. When I got started I realized that I was good at creating value, I had experienced OEM, and I enjoyed creating innovative products.

Related: How to Make Money with Four P’s of Business Marketing Strategy?

Building a Market focused Organization

So I started with power products. A lot like the business I do right now. I didn’t try to sell myself as a creator of general house hold appliance or consumer electronics. Although those are perfectly good ways to make a living, they just didn’t match my skills. It’s sort of like selling on eBay. If you look at the top sellers, you’ll see that they specialize in fairly small areas. They get good at those specific areas, and just as important, they get known as the experts in those areas, and that’s what you want.

Market Focus Strategy Definition

That brings us to the second axis, the industry you’ll become a part of. As before, you’ll look at a few criteria. First, what industry do you know something about? Is there one where you’re known where your name already has value? And is there enough work for people of your skill in this industry? The final axis is your audience. That is, the kind of target customer segment you’ll sell to. Some freelancers sell directly to the people who will ultimately benefit from their services, what are called consumers or end-users.

Hey: Spend some time to read about Some Useful Tips for Developing Your Sales and Marketing Strategy.

But a lot of business comes from selling to organizations who in turn deliver benefits to their end-users. For those markets, one criterion target market demographics examples is that I pay a lot of attention to is customer size measured in the number of employees. That will drastically affect how you work. For example, if you’re dealing with a three-person company, you’ll probably work directly with the owner. But for a major corporation you might have to go through several layers of administration. Also important is the stage of your target company; whether it’s a start-up or an established corporation, and the sort of involvement the company typically expects.

Narrow market focus is to a differentiation-based strategy as some will be happy with just one off project work, while others might expect a monthly commitment. Which is better? It’s up to you and your work style. By the way, consumers also have stages. The way you position yourself will depend on what the market actually needs, and you’ll continue to discover that while you freelance. So, keep revisiting your worksheet as you go. If you’re not getting enough work or you’re not getting the kind of work you want, make adjustments as needed.

 

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