Identify your target market

Your target market is the group of consumers who are most likely to purchase your product or service.

Your business may have more than one target market, but one will usually be your primary target market.

Market segmentation

When starting out in business, many owners think their target market is every consumer (known as the ‘mass market’). In reality, your target market is usually a subset of the mass market made up of people who are most likely to buy your products or services.

Identifying this subset of the mass market is known as market segmentation. To define your target market, consider the following characteristics:

• Geography: Think about where your ideal customers live, work or spend their time in relation to what your business offers. For example, people may prefer to do their grocery shopping close to home or choose childcare services near their workplace or older children’s schools.
• Demographics: Consider characteristics such as gender, age, occupation and income. As an example, some products or services may appeal to professional women in their fifties with higher incomes, while others are better suited to young families on a budget.
• Psychographics: Think about your customers’ values, favourite activities, interests, lifestyle and opinions. A certain product or service might appeal to those who like to care for the environment while doing something good for themselves while others may be looking for unique or personalised gifts.
• Media: Consider where your ideal customers go to find information about products or services. They might use particular social media channels, listen to the radio or podcasts, read local newspapers or search online.

Defining these characteristics may sound complex, but if you’re already in business, a good place to start is by looking at your existing customers. Consider who buys from you most often and what do they have in common.

Know the benefits of your products or services

When you’re defining your target market, it’s important to understand exactly what would motivate a potential customer to purchase your product or use your service.

While the features of your product or service are important, customers are usually buying the benefits they provide. For example, the features of a home cleaning service might be delivering a clean kitchen, floors and bathrooms. The customer benefits might include saving time, reducing stress and enjoying more free time without worrying about household chores.

Create a customer persona

A customer persona is a fictional profile of your ideal customer based on your target market research. Include details such as their age, occupation, goals, challenges, buying habits and preferred communication channels. Referring to this persona when planning your marketing can help keep your messaging focused and relevant.

Check your competition

Understanding what similar businesses offer is known as competitor analysis. It can help you identify gaps in the market where your products or services could better meet customer needs. For example, there may be a popular meal kit service operating in your area but perhaps no one is offering vegan meal options at the same price point. You can also learn about your target market online by exploring who follows and engages with your competitors’ content.

Find your target market online

There are many tools you can find online to help you learn more about who your target market is and where you can find them. Depending on your preferred platforms, some are free while others require a subscription or one-off payment. Be sure to research the best and most secure options for your needs.

Google provides several free tools that can help you research your market, including:

• Market Finder – explore potential markets, identify customer opportunities and learn who is using products and services like yours.
• Consumer Barometer – understand how customers research products and services online.
• Google Trends – compare search interest over time, identify the popularity of search terms related to your business and understand seasonal demand.

You could also use other platforms or artificial intelligence tools to help you profile your target market and where you might be likely to find them.