Defining Your Target Audience

Creating a business plan is an essential step in starting a new business. A business plan will help you define your target audience and give you a clear vision of what you want to accomplish. To define your target audience, four main points must be considered.

Demographics

The demographic profile of your target audience includes variables such as age, gender, and income. Are they male or female? How old are they? Do they have a family? If so, what is their family size? What is their household income? If you’re selling directly to a business, how many employees do they have? How much revenue do generate annually? Some of this information will not be readily available, so spend some time researching your customers.

Psychographics

Carefully consider the psychographics of your target audience. These include personality characteristics, social class and lifestyle. Does your target audience share similar activities, hobbies, or interests? Do they have strong opinions or values about religious, environmental, or health issues?

Geographics

Geographic segmentation identifies your target market based on their country, state/province, city, postal code or climate. Understanding this group will help you decide if you are selling your products and services locally or internationally. Depending on your business goals, you may want to develop localized marketing programs that are specific to each geographic group.

Buyer Motivations and Expectations

Do you know why your customers buy your products or services? Learning what motivates them and what they expect from you will help you get a bigger return on your marketing dollars. Part of this includes finding out what problems they have and how you can help solve these issues. As a result, you will be able to differentiate your products and services from other offerings in the market today.

Learning how to define your target audience is essential to creating a solid business plan. With this knowledge, it’ll be easier to offer products and services that meet the needs of your target market. As well, this will help you develop effective marketing strategies that provide a greater return on your marketing investment.

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