Your target market is a group of customers that you want to focus on and sell too. When defining your target market, condense it to a manageable size. Many businesses mistakenly try to be everything to everybody. This often leads to failure.
You should research and gather information which identifies the specifics of the market you intend targeting. This might include information about the most important needs of your potential customers, the degree to which those needs are (or are not) being met, and the demographics of the group. It should include the geographic location of your target market and identify the main decision-takers. Finding out if there are any seasonal or annual trends which may impact your e-business, or business is also required.
Another important target, is the size of the potential market. You need the number of potential customers, and the number of annual purchases they make regarding products or services similar to your own. Also the geographic area they reside in, and the future market growth.
You will have to decide if you can gain a market share and identify the reasons why. In this research, you will determine the percentage of your market share, including the number of customers you expect to obtain in a defined area. You would also explain the methods you used to develop these estimated figures.
Deciding on your pricing and gross margin levels. Here, you would define the levels of your pricing, your gross margin levels, and any discount structures that you plan to set up for your business, such as volume/bulk discounts or prompt payment discounts.
You will have to find the resources for researching and correlating information related to your target market. These resources might include directories, trade association publications, and government documents.Learning how to use these resources will also be important.
You must learn how to use the media to reach your target audience. These might include publications, radio or television broadcasts, or any other type of credible source that may have influence with your target e-business, or offline business market.
To understand your intended target market better you will need the how often they will purchase and identify their needs. You will also need to identify who actually in your target group has the authority to buy.
Researching future trends and potential changes which may impact your primary and secondary target markets is another key element. Again you need to identify the demands, demographics, and the main trends which will influence your secondary markets in the future.
By: Ian Nicholson