Whenever you decide to sell a product or service, you should have a target market in mind. These are the people who are most likely to buy what you have for sale and will most likely be willing to pay the most for it. How do you go about identifying your target market?
Think About Who Would Benefit Most From the Product or Service
You probably have a good idea as to who would benefit the most from your product or service or at least who could. For instance, if you are selling a new electronic device, you may gear it toward teens or college students looking for the next hip thing. You may also want to direct it toward professionals who may be looking to increase productivity from wherever they happen to be.
Don’t Be Afraid to Ask If The Idea Makes Sense
Your next step is to find out if your proposed target market actually likes what you have to sell them. In some cases, you may find that you were right about who your market is. In some cases, you may find that your target audience actually skews a little older or younger or that males like the product better than females. It is also possible that you have the target market correct, however, they don’t think that the product or service is worth paying for at this time.
Who Is Willing to Pay Up?
Your target market consists solely of those who are actually willing to pay for your product or service. If 1,000 people say that they like your product, but they aren’t willing to pay for it, you don’t have a market to target at all. Instead, you have a promising idea that needs further refining or needs to be held back until attitudes or perceptions change. While it may seem cool to sell 1,000 units of a product, you won’t make a profit, and your time won’t be well spent unless you make money from your efforts.
If you are going to run a successful business, you need to know who your customers are. It is critical that you include your target market in your business plan, hold focus group testing and ask for as much feedback as possible ensure that you are going after the right people. Otherwise, your idea could be doomed to fail no matter how great it is.
Roman Temkin is a real estate developer who hails from NYC.