Being able to correctly identify market segment is essential designing any commercial or marketing strategy.
A business model is based on 3 fundamental axes: value proposition, market segments, and profitability (which itself is calculated through cost structure and sources of income).
Once a value proposition has been established, it’s time to define the market segment. This process of developing the business model is a process of interrelated parties, it means these 3 axes are mixed to form a single one.
Dozens of companies are created around a product. They never worry about market segmentation or developing a business model. And they inevitably fail unless they get their house in order.
What is the target audience?
A target audience is the public to whom all marketing efforts are directed at. They are the people you want to sell your product or service to.
It is of utmost importance to clearly define your target audience in order to know who to target your marketing to and amplify your engagement.
Many companies, after poor positioning and sales, settle for whichever client shows up to buy their product. But are they really satisfied with their clients? Are they comfortable with the market segment that buys their products? Is it really who they want to sell it to? We’re pretty sure they’re not.
The most common mistake is to try and reach the moon. No product or service can be targeted to the whole world. Trying to will only lead to a waste of money, time and strategy.
That’s why in this article we’ll explain a simple method to focus on your ideal market segment.
Defining your target audience will clear up who your ideal customer is. This perfect client is he or she whose problems, desires or needs your company can solve, and he or she who can afford them.
However, it’s important that your ideal customer be aware of those problems, needs or desires. If they don’t then it’s up to you and your marketing team to make them aware that they need what you’re trying to sell.
Knowing your target audience is just as important as finding out who your ideal customer is.
Questions to define the target audience and ideal client
You should know both your target audience and ideal client as best as possible in order to find out how to win them over. Here’s some pointers to what you should know.
The data used to launch any brand or campaign is very useful to define your target audience.
In the past, sociodemographic profiles were deeply simplified due to technological limitations. Now, we can know audiences way beyond age and social status. Segmentation can now be defined by experiences, behaviour and buying motivators.
Building empathy with your target audience is key. To sell, you must first understand them emotionally. The following questions will help you build a more direct and effective value proposition.
- What are their concerns?
- What are their challenges and objectives in the short and medium term?
- Are they independent or friends-and-family oriented?
- Do they like to impress or are they discreet and prefer to go unnoticed?
- How is their style dressing?
- How would they describe a normal day of their life?
- What do you they in your free time and on weekends?
- What are their hobbies?
- What activities do they practice?
- What kind of places do they like to frequent? How are those places? What do they all have in common?
- Do they like technology?
- Do they follow trends?
- What kind of music do they listen to?
- What type of shows do they watch?
- Do they like to travel?
- Do they like animals?
- Are they committed to the environment?
- Do they actively support any social cause?
- How is their tone and style of communication? Smart? Technical? Youthful?
- What do they reject, don’t like or are against?
- What topics do they talk about?
- What do they recommend?
- What brands do they usually buy from?
Internet Behavior Data
- Are they on social networks? On which ones? Are they an active user because of their frequent publications or are they passive because they connect but don’t publish or interact with others?
- What type of pages or profiles do they follow in social networks?
- Do they belong to a group or community where everyone shares the same hobby or interest?
- Are they influential in their community of friends and followers?
- What kind of content do they like?
- What brands do they follow?
- What public characters do they follow?
Make a portrait of your ideal client
Once you have your ideal client’s likes and behaviour down, name them and give them a personality . Create a character out of your ideal client.
Having your ideal client clearly defined and characterized help you understand:
- How to adapt the product or service to the needs of the ideal customer
- What price range he 0r she would be willing to pay
- How to empathize and what messages to communicate to capture their attention and interest
- What topics they’re interesting in
- How to create effective calls to action
In the beginning, figuring all this out may seem hard. But using ideal clients and market segmentation as tools will help your business find an audience and grow.