Five steps of target market analysis

Why should companies write a target market analysis? The most important thing is that is can help you use your marketing funds more effectively. You can identify the most important characteristics about them. Then it is easier to promote your product or service directly to them. This can really increase sales. 

STEP 1: Identify your target market

Identifying your target market will help you use your resources more wisely when you market to a specific group of people. 

• List all potential customers. Individual buyers, other businesses and middlemen who re-sell your product
• Segment your audience and then split them up into different groups of customers

Determine who will benefit from your product the most. This is your company's target audience. Focus your campaign on this group.

Image (c) Alex Slobodkin / Getty Images

STEP 2: Describe your target market demographically

Demographic characteristics can be age, gender, maritial status etc.. 

• This kind of information can be often found online 
• For businesses can this kind of information can be where the business is located, their annual revenue, industry and so on

http://combatarms.wikia.com/wiki/File:Globe.svg

STEP 3: Describe your target market psycho-graphically

Psycho graphic information tells you information about you audience's attitudes, beliefs, emotions and values. 

• This kind of information can be found through surveys or focus groups. It would be beneficial to hire a marketing research team to help you
• Businesses' psycho graphic information can include for example company's values or motto

http://induxtree.com/content-marketing/psychographic-segmentation-in-b2b-marketing/

 STEP 4: Describe your target market behavioristically

It helps you to understand why someone purchases something over another. It includes how often target market buy the product, how much or how many they buy and so on.

• Determine how important brand or company loyalty is to your target market
• Ask if your customers prefer face-to-face interaction or an online store
• How do your target market pay for your product?
• Do your audience most heavily value convenience, a good price or quality?

http://www.forbes.com/sites/marketshare/2013/01/07/is-brand-loyalty-dying-a-slow-and-painful-death/

STEP 5: Compile your results 

This is your target market analysis, an in-depth look at the lifestyle and the characteristics of your customers.

• Consider using graphics! It helps your organization visualize different numbers and percentages.

http://www.target-a-market.co.uk/wp-content/uploads/2014/06/target-markets.jpg

- Tanja Heikkinen

 

Source: http://www.wikihow.com/Write-a-Target-Market-Analysis