As an Online Business Owner, an essential part of your business plan is researching and defining your audience. Once you understand who your “target audience” is, you can implement your target marketing strategies. This gives your market exactly what it's looking for.
As I have said on different occasions, defining your “target market” is often overlooked by new Business Owners.
In this post, I'll explain the process of finding your audience and delivering on your business goals.
Who is your target audience?
Let's look at a good target audience example: The American gold rush.
I use this example because everyone knows about the Gold Rush of the 19th century.
Many gold miners risked their lives to visit the gold mines and pan for gold hoping to make their fortunes.
A small percentage of prospectors became wealthy. The real fortunes were made by the suppliers of the pans, shovels, and other tools and supplies needed by the Gold Miners. A target market was identified, the suppliers solved a problem, and the suppliers got rich as a result.
The next question, is where does your audience hang out?
Find your target market with simple research
Researching your target market can take on any number of formats. Remember, you're looking for people who want solutions to their problems.
Here are a few research sources:
- Social Media
- Discussion forums
- Posting your own content
Social Media
Social media is a great way to engage people and learn what they are looking for. When you ask the right questions, you'll find a common pattern that highlights those pain points.
People always want to be heard and love giving their opinions, so you should get lots of feedback.
Discussion Forums
The way social media was done before social media! Discussion forums present more of a niche community. You can successfully research your audience by reading the post content in discussion forums.
Posting your own content
So many people struggle to identify their target audience, that it stops them from producing content. The big takeaway here is to get your content out there; Write the blogs, shoot the videos, post on social media, and then review who is attracted to your work.
Chances are people will be attracted by the person you are, rather than the content you produce. At that stage profile those people and tailor your content to them. They are your target audience.
Define your target market like Branson, Musk (even Ratner)
Do you have an audience who wants to buy the product you have planned? If not test a target market before you create your product or service. Don't make the mistake of taking the time to develop a product before you identify your target market. Instead, develop the audience and then develop the product.
Do You Remember Ratners..?
If you're from the UK you remember a jewellery chain by the name of Ratners. The owner of the company Gerald Ratner crashed his successful business overnight by suggesting that his products were rubbish!
Some years later Ratner saw a gap in the market for an exclusive gym. He had little money and the banks saw him as a risk, so decided to test the market before creating anything.
Ratner pre-launched the new gym and sold memberships before the gym was even built raising £800,000 in pre-memberships. Once he identified his audience and raised deposit capital the gym was built, Ratner recently sold the gym for £4.2m
Richard Branson did the same thing with Virgin Galactic and Elon Musk with Tesla. Great for cash flow and future-proofing your business.
You can read one of my own stories about developing a target market in this article here.
Target Audience Demographics
Target audience demographics are factors such as age, race, and income that make up your customer avatar.
If you have a business plan to make $100,000 in 12 months then you need to consider if your audience demographics have the following characteristics:
- A disposable income to afford your products
- Credit cards to buy via the Internet
- A need or pain point to buy your products
- Are accessible with your current marketing methods
- History of buying similar products
You will be amazed at the number of people who never give much consideration to identifying their target audience. If you're going to sell high-ticket products, you need an audience with a good disposable income.
Once you have decided on your ideal target audience, you need to further define your customer as shown below.
Target Market Analysis Example
To further define your target market you need to know what your market needs and wants.
If we look at an example of target market analysis, what is the common interest or concern that they all share? How old are they? What is their education? Disposable income? Where can they be found? What do they do for a living?
Here is one of my target market demographics:
- Common Interest/Concern: Not having enough money for retirement
- Interest: Researching developing an online business
- Common Concerns: Not enough knowledge to go it alone online
- Age: 45+
- Education: Minimum College-educated
- Income: Large disposable income with assets
- Buying Ability: Have credit cards with reserves
- Lifestyle: Married with children
- Lifestyle Goal: To retire financially secure
Discovering the pain points of your target audience and what they want takes some effort on your part. Connect with your audience in the ways I have discussed in this article.
Once you have defined your target audience you will be in a position to sell the right product to them and the business will thrive.
