In this example, there’s a lot of overlap in the psychographics, but that may not always be true. These are just some of the factors you can consider for building a target audience within this target market. What’s the high end of revenue in the target market? What is the revenue number that impacts the delivery of the service in a way that doesn’t fit the business model?įiguring out your target audience can actually help you gain clarity on your target market. This last bullet about revenue reveals an opportunity for improving the target market definition. How you talk to and about the administrative/operational needs of a 200K business with no employees would be different than how you talk about the same needs for a business that’s bringing in 500K+ and has a team. You could divide it up between sole practitioners and micro businesses.īusiness longevity could be a segment if you noticed certain trends that align to younger vs. Now let’s look at how we can pull out audience segments to target from this market: We could dig into some sociographics for this example if we wanted to, but it isn’t really necessary. Needs to establish administrative and operational processesĭon’t have time to learn software/systems and make optimal connections Understand the importance of repeatability for scaling their business Sole practitioners and micro business owners (may have an employee, but likely just contractors)īusiness has been around for 5+ years, incorporatedīring in a minimum of $200,000 annual revenueĮstablished business with regular clientele Based on the research, they’ve defined their target market as follows: Let’s say we’re defining the market for a local business that offers virtual assistant services. When you’re a solo, micro and even most small businesses with numerous employees, there may not be resources (money or people) to manage multiple streams of messages without commonalities.īut it’s still important to have a good understanding of the distinct audiences you target so your messaging is relatable. Defining your target audience(s)Įach target audience is a subset of your target market and they’re the group you craft marketing messages for in various marketing activities. But if you’re looking to expand further, it’s valuable to think bigger. The first two (demographics and psychographics) are the most commonly used for small businesses that are local in focus. Geographic - this is useful to segment separate from demographics if you’re dealing with large demographic segments (i.e., North America, EMEA, APAC, etc.) (Very useful in creating audiences)īehavioural - this is useful when you have data about how people interact with your products (such as SaaS subscribers) to segment based on usage data/status. Sociographics - this digs deeper into the personal profile of needs, attitudes, social connections, and passions. Psychographics - this includes more qualitative data such as needs, interests, activities, affiliations, attitudes, and values. There are a number of ways you can use to break down or segment your target market, including:ĭemographics - this includes quantitative data points like age, revenue/income, geographic location, gender, business type (B2B), industry/vertical (B2B), and more. This process involves looking at your competition, your offering, and, your clients (or who you think should be your clients). The target market is the big group of people that you define through analysis of different data points. What are each of these and how should you think about them as a business owner? Let’s dig in! Target market and target audiences Defining your target marketĮvery business has a target market that they’re going after to help with their products and services. That includes the problems they have (that you can help solve), where you can find them, and the language they use.īut how does your target audience compare to the ideal client you want and the clients you actually have? Turns out, each of these might look a little different (but hopefully not too different). Your target audience is a fundamental piece of your marketing strategy because you need a solid understanding of the audience you’re trying to reach (and who you don’t want to reach). I have conversations with clients and prospects all the time about the work they do, the benefits and outcomes their clients and customers experience, and who they target with their marketing.
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