Identify and Reach Your Target Market

Jul 30, 2020

Enter description text here.

Discover strategies to identify and reach your target market. Plus, get real target market examples to inspire your own.

Why are Target Markets Important

I'm sure you've read many articles telling you to find your target market and create content they'll find interesting. What many of these articles lack is a clear explanation of how to find your target market.

Knowing who your customers are is essential to the success of your business. You need to know the answers to questions such as:

  • Who's an ideal fit for your products or services?
  • What are their interests and priorities?

When you can answer these questions, you are able to prioritize and focus on customers who want to work with you so you can more easily sell your products or close more deals for your services. But first, you need to know how do you find your target market and what exactly does that mean.

Knowing who your customers are is essential to the success of your business so you can focus on customers who want to work with you.

Why are Target Markets Important

I'm sure you've read many articles telling you to find your target market and create content they'll find interesting. What many of these articles lack is a clear explanation of how to find your target market.

Knowing who your customers are is essential to the success of your business. You need to know the answers to questions such as:

  • Who's an ideal fit for your products or services?
  • What are their interests and priorities?

When you can answer these questions, you are able to prioritize and focus on customers who want to work with you so you can more easily sell your products or close more deals for your services. But first, you need to know how do you find your target market and what exactly does that mean.

Target Market and Target Audience are not the Same

If you've been working on your marketing plan, you've likely come across the terms target market and target audience. While both of these are related, they've some important difference which can help you be more successful in creating marketing messages that resonate with your ideal customers.

Target markets and target audiences have quite of overlap and may sometime be exactly the same for your business. When you understand who each of these groups are, you're able to determine the best way to capture their attention and deliver exactly what they need.

Define Target Market

Target markets are the group of people you serve with your products and services. Their demographics have similar characteristics such as age, gender, income, and occupation.

Target Market Example

Let's use a business who sells environmentally friendly children's toys. They sell a variety of toys for children from newborn to pre-teen. Their target market would be children from 0-12.

target market example

Get the best marketing insights delivered straight to your inbox.

What is a Target Audience

The target audience for your business would be the particular people you want to reach in order to sell your product or service. To determine your target audience, you would need to determine who needs to come into contact with advertising messages in order to ensure a sale is made.

Target Audience Example

With our previous example of a toy company, one target audience would be the grandparents of these children during holiday promotions. This business could advertise in a senior's magazine during Christmas and create messages that speak directly to the grandparents about buying a special toy for their grandchildren.

target audience example

Target markets are the group of people who will want your products or services. Target audiences are the people who will buy your product or services.

Who Is Your Ideal Customer?

Attracting customers to your business is made easier by understanding how to effectively use marketing techniques which will help you attract your best customers.

For some businesses, the product or service you offer can be a major purchase decision. For example if you're a construction company that builds new homes, this is a purchase that most people will only do once -- or maybe twice in their lifetimes. Choosing the contractor who will build their home can be a daunting challenge. For other businesses such as our toy company example, there are a variety of products that will fit your customers and understanding who the intended recipient is will make it easier to attract the right audience.

Your target market should be easy to identify not only by the executives and marketing teams in your office but also to the consumer who's buying the products and services you're offering.

If you don't know who your ideal customers are or who you're marketing to, how will you attract customers who are the best fit for your business? More importantly, how will your ideal customers know you're the right contractor for them?

If you don't know who your ideal customers are or who you're marketing to, how will you attract customers who are the best fit for your business? More importantly, how will your ideal customers know you're the right contractor for them?

Construction Target Market Example

Are you the "go-to" builder in your area? Do you build high-end luxury homes or do you specialize in the construction of modern family homes?

Let's say there's a couple in their late 20's who are a few years out of college. They're in the market for their first home and have decided they want something new, fresh, and uniquely theirs. They want to build their own home; are you the contractor they'll call?

your ideal customers

Entrepreneur.com defines demographics as “A statistical view of a population, generally including age, gender, income, schooling, occupation and so on.”

Use Demographics to Define Your Target Market

It’s best to start with a broad idea of the customers you wish to attract narrow this down to a very specific niche. The services you offer are what you use to determine who you’ll be targeting.

For example, a residential construction company may define their ideal customers as growing families who make over $x amount each year and live in x location.

This answers three questions about your customer:

  • Who is your customer: Growing families is specifically stated in the example above
  • What is your customer's problem: While this isn't specifically stated above, the problem could be either the family needs to build a larger home or they wish to move to a different city
  • Where is your customer: The example above defines a specific location (x location) but you could also define the "where" by stating your customers live in cities with a specific number of people. Other ideas to define where your construction customers are located include region, state, county, suburb or country.

When you create a broad definition of your ideal customers, you build the framework which leads to specific information about the customers you want to attract to your construction business.

How to Define Your Target Audience Using Demographics

The more specific you are, the better your marketing strategy will be. Here's some ideas to get started with defining y our demographics:

Age – how old would your ideal customer be?

  • 13-17
  • 18-24
  • 25-34
  • 45-54
  • 55-64
  • 65+

 

target market demographics
target market demographics

Why would it matter how old your customer is?

Let's consider the toy company again and the grandparents you're trying to reach. The oldest millennials are now old enough to have grandchildren! If they were 18 when they had their first child and their first child has their first baby at 18, then millennials could have grandchildren who are 2 years old. Teen pregnancy was on the rise with the millennials so there's a high chance many of them could have more than one grandchild.

Marketing campaigns for millenial grandparents and marketing campaigns for baby boomer grandparents are going to be completely different. Do you profit better from selling to millenials or to the baby boomers?

Knowing the age group and buying habits of your target customers is a key step in attracting customers to your construction business.

Income - how much money do your customers make?

Dave Ramsey, a trusted financial expert, suggests budgeting 25% of your income for housing needs. He uses an example of a $5,000/month gross earnings. Consider our construction company again, according to his example in order to afford a house valued at $281,650, your target market would need a 40% down payment (this is based on a 15-year mortgage). When defining your ideal customers, it's a good idea to take into consideration the average cost of the homes you build and what income level your customers should be making in order to afford your products and services.

income demographics

In addition to age and income you'll also want to consider:

  • Gender
  • Education
  • Occupation
  • Ethnicity
  • Marital Status
  • Number of Children

Look at your current customers for ideas to put together this information if you get stuck. The people you already serve will provide you with many of the answers you need to define your target market

Gen Y and Millennials make up 45.5% of the construction industry, while 54.4% were born between 1960 and 1979. [JBK]

Use Psychographics to Identify Your Target Customer's Behaviors

While demographics define who is buying your products or services, psychographics define why they're buying. Some of the information you should define include:

  • Personality
  • Attitudes
  • Interest
  • Lifestyle
  • Behavior

Values - what is important to your customers?

Do you build green homes which are good for the environment; are green homes something your customers' value? Perhaps you specialize in "smart homes" your customers can control with their phones or computers. Matching the values of your customers to your home construction specialty ensures you're reaching customers you can serve best.

Hobbies - what they do when they're not working

Home offices, man caves, indoor or outdoor entertaining, large garages - these are features built into a home to serve the hobbies of your customers. Perhaps you specialize in products for large dogs that are targeted towards people who live in urban areas, enjoy sports, and like taking their dogs on long hikes. 

buyer personas

 

One more item should be considered -- customers who currently don’t fit into your target audience demographics, but you’d like to attract them to your business sometime in the future. These are your aspirational customers. You should define your aspirational customers so you have an idea of new goals to attain. 

Aspirational Customers

One more item should be considered -- customers who currently don’t fit into your target audience demographics, but you’d like to attract them to your business sometime in the future. These are your aspirational customers. You should define your aspirational customers so you have an idea of new goals to attain. Perhaps you'd like to start working with more Millennials who want large open concept smart homes.

Target Audience Profile Example

The toy company we've been discussing has a target market of children from 0-12. Creating a target audience profile would be better suited for them as they need to define who wants to buy their products and services.

Here's an example of their target audience

Target Market 1
Grandparents
45-54
2 grandchildren ages 2 and 4

target audience psychographics

Mary and John

  • Mary is a customer service rep and John is a retired Army veteran
  • Neither attended college
  • Income $80k - 100k
  • Married for 25 years with 2 grandchildren
  • Lives in the Midwest in a town of 40,000
  • Visits their grandchildren 2-3 times per month

Buying motivation: Both Mary and John had those ideal type of grandparents - the old-fashioned ones who baked cookes and spent the summers with them, went berry picking and had lots of picnics. Being young grandparents, Mary and John have not been able to be that type of grandparent to their grandchildren and they feel a bit guilty at times. They try to visit their grandchildren a few times a month but it is just never quite the same as the times spent with their own grandparents. Each time they visit they try to bring new toys and the latest "cool" things to make up for the missed times together.  

Buying concerns: Mary and John's only child is very environmentally concious. It seems every time they bring a new toy for the grandchildren, she is telling them how bad it is for the environment or that it's not educational enough for the children. They want to be sure what they buy their grandchildren will make both their daughter happy as well as the children. They're looking for educational toys that are environmentally friendly.

Get the best marketing insights delivered straight to your inbox.

Construction Company Target Market Example

Putting a name and face to your social media target audience will give you a visual of who you’re trying to reach and make them seem more real and personal to you.

Right now, your social media target audience might look something like this:

Target Market 1
Husband and Wife
25-34
Married with 1 Child

By digging a bit deeper you can build a persona like this:

attracting customers to your businessDick and Jane

  • Dick is an RN and Jane is a software developer
  • Both are college graduates
  • Income $150k - 200k
  • Married with 1 kid
  • Lives in a suburb just outside the city
  • Interests Hiking, Entertaining, Building Hot Rods

Buying motivation: They've just had their first child and currently live in an apartment. They plan to have more children in the future and prefer to have a home where their children will grow up. They enjoy entertaining and having lots of friends over for dinner; their apartment just doesn't have the room they need for a lot of guests.

Buying concerns: Dick and Jane have very different personalities, he enjoys cooking and throwing parties while Jane enjoys building the hot rod out in the garage. As a software developer, Jane is very interested in having a smart home which is easily controlled from her phone but Dick finds technology challenging. After a hard day at work, Dick wants to relax with the kids and possibly a few friends without trying to mess with lots of gadgets. Jane prefers to retreat to the garage and get some much need time to relax and recharge.

Use Your Target Audienc to Attract Customers to Your Website

Using the information you defined for your buyer persona, you’ll be able to set achievable goals direct to your target audience and overcome the buying concerns which they have. You don't need to limit yourself to just one buyer persona - consider the demographics of Millennials. The range in age from 15-35; some are just driving cars while others might be moving to their second home. Within this one generation alone could be multiple buyer personas which would be a perfect fit for your construction company.

Need Help Implementing These Marketing Strategies for Your Business?

We're Here For You!

We'll help you put together a marketing strategy that identifies your target market, your target audience and delivers results. 

Leave a Comment

Your email address will not be published. Required fields are marked *

We're thrilled you've chosen to leave a comment on our website! Please keep in mind comments are moderated according to our comment policy.

POPULAR CATEGORIES

Searching for something specific? Check out our popular blog categories. Simply click on the category and view related posts.

SEO
Web Design
Social Media
Blogging
4 Shares
Share4
Tweet
Share
Pin