It is critical to recognise that without properly identifying your target market, all your marketing efforts and expenditure will be pointless.
If you ask small business owners to tell you about their target market, most will struggle to define their customer base. This makes it extremely difficult for any marketing campaign that they conduct to be successful. It is easy to neglect business theory such as target market identification or SWOT analysis due to lack of time, but it can be very helpful.
A business simply can’t be all things to all people, however much you want it to be. Sometimes it is necessary to tailor your products and services specifically to better serve the needs of your target market. Unless you know who your customers are, how can you make them happy?
A market is simply a group of actual or potential buyers of a product. There are three main types of market. The biggest of these is the consumer market, which is comprised of individuals and households that buy goods for their own use. The other types are the industrial market (individuals or any organisation that purchases goods for use in their day-to-day operations or production) and the reseller market (middlemen or intermediaries that buy goods and sell them at a profit). Depending on what type of products and services your small business produces, you will most likely target just one of these groups.