what are the different ways to identify the target market for a business? plz answer best ans will be selecte?

Answer 1

While there are many techniques you can use to find the right target audience for a company, the most common technique is based on identifying the highest potential customers of its products/services.

Let's pretend we are trying to complete this exercise for a fictional company called XYZ electronics.

We would take a list of XYZ's customers and order them from most valueable to least valueable based on their history of purchase. The number of products a customer has bought, the length they have been a customer and the profit margin of the products purchased would help us calculate the value of the company's customers. Assuming an 80/20 rule (the pareto principle- 20% of customer drive 80% of value), we would be able to segment out the top 20% of XYZ electronic's customers.

We would then analyze what was common for the top 20% relative to the non-20%. Are they men? Do they live nearby stores? How old are they? Based on this analysis, we may have identified its target market.

If XYZ electronics is a new store, we may want to do a general industry analysis and do the same exercise for entire electronics category. Who buys the most electronics? Who are the most valueable targets based on purchase needs and purchase ability.

Answer 2

First off you need to know what the business is doing, from there you find your target.

Some time it is better off to find your target segment then design your business product or service to that segment.
Like tweens kids 9-12 years old. cloths, video games, what every els the kids are buying it only a several billion market segment.

Also you need to be ware of your secondary target. Some times this is just found and were the real money is made. A good example of this was the Toyota scion was made for young new out of school college kids, then it was middle age dinks that buy them so you do not see them loaded up with bikes and surfboards any more.

Also the Camry made a new high end luxury car market that was on tapped. till a few years ago there was nothing between Your dads old's to a Cadillac.

My favorite is to make a market who know you had tartar till just a few years ago that need to be controlled.

Answer 3

Market research is one of the best ways to help identify a target market. You are rather broad in your question. It would help to know the type of business, products sold or services offered. If you don't want to do market research then you will be doing a hit and miss to try and identify your potential market.

Answer 4

A "aim audience" is a particular team of clientele on your product. working example......in case you created a lighter racing saddle, then your aim audience may be the proprietors of racing horses. Or...you're advertising a various variety of cat nutrients, then your aim audience could be cat proprietors.