Here are several tips you can use to help you define and better target your audience in a consumer market for increased sales and revenue generation:
The first and most important step for targeting buyers in a consumer market is to know your current buyers. Study your current customer base to identify their common interests and characteristics. Look at the demographics and qualities of the buyers in your customer base with the largest buying power. Customer surveys and market research can help you identify the needs of your customers and how you can serve them better.
Another way to improve targeting in a consumer market is to streamline your marketing and offers to a specific demographic. You can target buyers by:
Age
Location
Education
Income
Occupation
Marital status
Ethnic background
For example, people ages 18-24 love eating snacks because it offers more convenience and flexibility than full meals. Meanwhile, people in rural areas with rail connectivity are more likely to travel long distances by train. Low-income people with families may visit retail stores more often to buy in bulk and take advantage of discounts, while single buyers with middle-class income may prefer buying more expensive brands at upscale stores.
You can evaluate your competitors' offers, the unique selling points of their products or services, advertising campaigns, marketing strategies and the things that give them a distinct advantage over your products. The data from this exercise can help you better target your market. Identify the things customers like about your competitors and decide how you can beat them by upgrading the features and benefits or adjusting the pricing of your own offers.
For example, if you're in the transport industry, you may want to know the strategies your competition is using to convince travelers to use their service. It might be cheap prices, a special in-flight menu or even the choice of flight attendants. Some retail stores may boost customer loyalty by giving buyers redeemable points when they shop.
Analyze the features, benefits and value your products or service is providing the consumer to determine whether your product or service truly solves the buyer's problems as advertised. Doing this can help you qualify consumers who will benefit from the features of your products or services. At the end of your evaluation, decide on strategies that may make your product or service deliver a more satisfying consumer experience at a competitive price point.
For instance, the unique value proposition of some budget airlines is cheap tickets, regardless of the travel season. Many of these airlines make a profit by selling in-flight food and other products at a higher markup than non-budget airlines. If you operate a long-distance bus company, you can offer in-coach, free Wi-Fi, frequent stops and easy access to passengers with disabilities and people traveling with pets.
Psychographics refer to the personal attributes of a person, and you can assess your product or service to determine how they fit into your target market's personality and lifestyle. For example, young people who spend long hours on the internet are almost always better engaged online via social media platforms. Older, wealthier, retired citizens who read newspapers may be more accessible via traditional media channels. These data points can help you create an engaging message that will resonate with your target market, increase conversion and boost revenue.
Personality
Lifestyle
Behavior
Interests and hobbies
Attitudes
By identifying the personality and habits of each market segment, you can better serve them with the products or services that meet their needs. For example, if you sell snacks, people who are diabetic or conscious of their sugar intake may avoid items with sugar while athletes can prefer high-carb, protein-rich options.
Once you know the needs of your market and how to meet their needs, you can qualify them with some criteria such as:
Is the market big enough for you to make a profit?
What is the buying power of the market and the accessibility of your products?
How will you compete with products and services with the same or better features and pricing?
For example, if you're planning to open a new shop, it is important to know the percentage of residents in the area whose demographics match your target market. The information can help you determine the size of the store and the type of merchandise to stock in the new outlet.
You can also use this strategy to design your pricing strategy when opening a new air travel corridor. If the place has many affluent residents, business class and more expensive in-flight services may be a good pricing strategy as opposed to an area with a majority of low-income earners.