No business can be all things to all people. Luckily, your business doesn’t have to be. You can focus your marketing and sales efforts on a specific target market—the group of consumers you want to have using your product the most.
To identify your ideal group of consumers and understand them fully, you’ll need to perform target market analysis. We’ll show you how, using surveys, but first, let’s review why this type of analysis is essential in the first place.
Target market analysis determines where, and how, your product fits into the real-life market. With this information, you can:
Let’s explore these benefits using a real-world example. Say you’re starting a pie business. Performing target market analysis can help you choose the best location for your bakery, land on the optimal price point for your pies, design appealing advertisements, and place them where the right people will see them.
A survey that includes the right questions in the right order can make all the difference in effectively conducting target market analysis.
Start your survey with consumer behavior questions that ask about their habits, their attitudes, their brand awareness, and their brand loyalties. The questions can be specific to your product or they can be general inquiries about where, when, and how the respondent shops.
Keep in mind that you can use your first consumer behavior question to disqualify respondents from taking your survey (if their answer makes it clear that they aren’t the right fit). For example, if we ask “how often do you purchase pie from a grocery store, bakery, or restaurant?” and the respondent says that they don’t purchase pie, we can disqualify them from taking the rest of our survey.
We call disqualifying questions “screening questions.” To learn more about using them in your surveys, check out our guide.
Once you’ve finished asking consumer behavior questions, ask for more basic background information: age, gender, location, family, income, etc. These demographic questions are the building blocks of your buyer personas.
Now it’s time to identify your target market by putting your survey in front of as many types of potential customers as you can.
To reach the best audience for your target market analysis, follow these steps:
The survey results are in. Now what? To identify and understand your target market, use filters and Compare Rules.
Target market analysis requires thoughtful survey design, an unbiased audience, and careful analysis of the results using filters and Compare Rules. If you can do each of these things well, you’ll understand your target market, and ultimately succeed in developing your product, positioning it, selling it to consumers, and more.