The Importance of Determining a Target Market for Your Business
If you are a businessman, of course, you want your business to grow rapidly. So, to achieve this requires an appropriate and effective marketing strategy, one of which is determining the target market. The target market is an important term for you to know as an entrepreneur, where you must be able to determine your target market first before marketing a product. In determining the target market, companies must first segment the market by classifying consumers with almost the same characteristics.
Determination of this target market is important because the company is not able to serve all consumers or buyers in the market due to various needs and wants. Therefore, companies need to identify which parts of the market will be served as a target market.
What is the Target Market?
Before knowing more about the target market, you must first know what the target market is. The target market is a group of consumers who are the target of the company’s approach to buying the product being sold. In short, the target market is the group that will be served as consumers. The target market usually has almost the same age, characteristics, and characteristics.
The Importance of Determining the Target Market
Why do you have to determine your target market? What benefits will you get? Below are some of the things you will get by determining your target market before starting a business.
- Positioning marketing ideas more clearly
- Better organize the product.
- Find and compare market opportunities.
- Grouping the budget that is owned appropriately.
- Creating traction in marketing.
- The company will be in a better position.
Pay attention to this before determining the target market
Before determining your target market, there are some things you should pay attention to. Check out the reviews below.
1. Segment Size
Pay attention to the size of the segment that will be addressed to decide whether the segment is promising enough to continue or not. Don’t target segment sizes that are too large or wide. Generally, large companies will tend to choose large segments, and vice versa, small companies will choose smaller market segments. The goal is that the company can adjust the company’s targets to their respective abilities.
2. Segment Growth
Analyzing segment growth is necessary before determining the target market. Pay attention to the growth of the segment that will be targeted to see the possibility of the business developing in the future. Although the current segment size tends to be small, the segment may grow to be large in the future. A small segment is a potential market segment.
3. Situation Analysis
Analyze the situation carefully and carefully before determining the target market. The situation analysis relates to consumers, suppliers, and distributors using a SWOT analysis (Strengths, Weaknesses, Opportunities, Threats).
4. Company Resources
Before determining the target market, try to pay attention to the resources the company gets. If the company’s resources are obtained from collaborating with outside parties, then you must be careful. Because the benefits and risks are shared.
5. Available Funds
Pay attention to the funds provided by your company, if the company provides a small amount of funds, don’t take risks to determine a large target market. Try to balance between funds and the target market that is the target goal.
6. Suitable Purpose
After determining the market segment, the company should stay focused on the segment. Try not to switch to other market segments that were not planned to avoid the risk of experiencing losses.
What are examples of target markets?
Below, we will provide an example of a target market. For example, if you are an entrepreneur in the field of women’s clothing, then an example of a target market that you can determine is as follows:
- Products for sale: women’s clothing sold online.
- Target location: big cities, such as Surabaya, Jakarta, Semarang, Medan, Palembang, Bandung, Yogyakarta, and others that can be reached by couriers in a maximum of 2-3 working days.
- Target Demographics: vulnerable women aged 17-30 years who have an income of more than 2 million per month.
- Psychological Characteristics: familiar with Internet and social media and following current fashion trends.
The importance of determining the target market is one of the ways to do it before starting a business. Besides, so that your business grows, don’t forget to advertise through the Froggy Ads service, you can start by advertising your products so that later you can increase visitors on your online business portal. Froggy Ads is an online advertising service that can help you control all your product campaigns. helps you target your desired marketing target and provides you with multiple options for marketing your product.