How to do Target Market Research

When starting a business, it is crucial to know your ideal customers. That is what target market or market research is all about.

In this blog post, I'll be sharing things that comprise market research and how to use them to your advantage.

Components of Target Market Research.

Demographics:

Target market research is all about demographics. That includes age, income, ethnicity, gender, beliefs, marital status, etc.

Knowing your target market will help with business strategy and branding, In order words, you can distinguish your products and services in the market.

Let's say you are selling bras. There is a market for small-chested women and another for larger groups. There's also a market for comfortable bras, strapless, etc. (you get the idea).

If you can deliver on a specific category of women, you have the chance of taking the lead or having your share of that market. Of course, there's a lot more to it than the product.

1. Gender:

Men and women shop differently. Women buy more clothing than men, and they also compare prices. According to Fredonia Focus Reports, "women were at least nine percentage points more likely to purchase an item than men for every segment except accessories." (Stuart, 2019)

Learn about the gender habits of your ideal customers and how that relates to what you are selling and how you'll market your business.

2. Ethnicity

Ethnic backgrounds influence shopping patterns/behaviors. There are some similarities between specific races and cultures.

Black people, for example, "dominate as consumers in the beauty and personal care categories—a multi-billion dollar industry—and make up 90 percent of the consumers in the ethnic hair care category. " (Roberts, 2021)

Understanding the ethnic makeup of your customers will improve product delivery and decision-making.

3. Income

Income can affect pricing. Think about how much your ideal customers can afford. If they can afford a premium, you can raise the price.

If prices are not well set, it can cost you business. Pay attention to what your customers can afford and you'll reap the rewards.

4. Household Size

"Household stability, size, and segmentation have a direct impact on consumption of goods and demand of services." (Marceux, 2017).

Is your target market a single person, newly married or married with kids, from a small or larger family with more or fewer responsibilities. These circumstances affect consumer behavior.

5. Age

Beauty products understand the age factor when selling. For example, facial creams with wrinkle reduction target older women who want to look younger and naturally beautiful. It can sound like cheating, but we all fall victim to our wants and desires.

By understanding the age group, their wants, values, and lifestyle, you'll have a stronger brand tailored to those specific needs.

Conclusion

• Target market research will help you define your brand, product, and business decisions.

• Demographics, including age, race, income, household size, and beliefs are factors you must pay attention to for a successful brand and product

• Locate your target market, and you can make your mark in your industry/market.

Reference:

Marceux, P. (2017). Why Household Specific Insight Matter for Business Strategy. Euromonitor International. https://www.euromonitor.com/article/households-specific-insights-business-strategy

Roberts, A. (2021). Why Black People are Top Consumers but Lack Wealth. https://www.campaignmonitor.com/blog/email-marketing/why-black-people-are-top-consumers/

Stuart O. (2019). How do Men and Women Shop for Clothes Differently? Freedonia Focus Reports. https://www.freedoniafocusreports.com/Content/Blog/2019/10/01/How-Do-Men--Women-Shop-for-Clothes-Differently#:~:text=Overall%2C%20both%20genders%20utilize%20different,(22%25%20to%2016%25)