There are three main steps in target marketing:
Step 1: Understanding Your Customers
Before you get into the practical side of your strategy, you need to understand who you are targeting with your marketing.
So this includes understanding your defining characteristics, which can be anything from age, gender, interests, needs, and behavior.
But remember, this shouldn’t be based on what your gut tells you is right. It should be based on lots of data and customer feedback, as well as determining which type of customer is most likely to buy from you.
Read also: Ideal Customer Profile (ICP): Which one is right for your business?
If you're not sure where to start, you might consider:
Demographic data : age, gender, ethnicity, income, education, religion and occupation
Psychographics : Consumers' personalities and interests, based jordan mobile database on things like personality, social status, hobbies, life goals, values, and lifestyles
Geography : location, time zone, climate and season, cultural preferences, language, population type and density
Behavior : consumption and browsing habits, interactions with the brand, brand loyalty, product ratings, attitude towards your products, use of your products
Step 2: Calculating your market size
Market size refers to the total number of potential buyers for a product or service that you can access and the potential revenue your business can earn from that specific audience.
So market sizing is simply looking at these numbers to measure your business's growth potential using these steps:
Start with your total addressable market (TAM) – or the size of the market you can realistically reach
Find your target market within that total number
Determine your target market penetration rate – this refers to the index that compares your company’s performance with the total market
Multiply your target market by your penetration rate to find your market size.
Market sizing = Target market x Market penetration rate
Calculating the size of your target market will help you estimate the potential demand that exists within that niche for your product. It will also help you get a sense of how worthwhile it is to target that particular slice of the market.
This process will also help you determine what type of sales funnel resonates best with that market.