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After assessing your entrepreneurial potential and evaluating your business idea, you probably have a good sense of what you're trying to create. But one fundamental question still remains: Who exactly are you selling to? Who makes up your target market? A target market is a specific group of customers that your business aims to attract. Understanding yours will serve you throughout the business building process.
Naturally, many new business owners are hungry for customers, and will seek just about anyone
willing to buy their products or services. Although this strategy might sound intuitive, trying to appeal to an unfocused group can be ineffective. Instead, targeting your product or service to a niche audience will help build a more relevant, compelling, and sustainable business.
Lets say, for instance, that you've created a new natural and organic cosmetic line. Your initial instinct may be to target anyone who purchases makeup. But in reality, that may not be the smartest move. The cosmetics space is oversaturated and dominated by large corporations with an abundance of resources. Selling your product to "women who wear makeup" would be like opening a restaurant for people who eat food. Its difficult to compete if you're are competing with everyone.
Rather than aiming for any women who buys makeup, it would be far more effective to focus on health conscious women aged twenty five to thirty five, who make more than $50,000 a year and live in major metropolitan areas.. Yes you eliminated a large portion of the market. But now you can position your product in a way that deeply resonates with your ideal customer. Instead of trying to be slightly relevant to everyone. When defying your target market, there are five things to examine:
3. wants and needs
4.hobbies and activities
5.and overall market size