Josh has always loved working in tech companies because of his passion and skill for software development and coding. After a couple of years, working the regular 9 – 5, he decided to launch his own company. Seeing that it was a very familiar ground, he figured getting his business out there would be just easy peasy.
However, it was to become more tedious than Josh anticipated to get his product out there. The reason for this was because all the time he spent in the different companies where he worked, he buried himself in everything coding and hardly devoted time to learn about the business aspect of the job. All he did was produce whatever his bosses asked of him and made sure they functioned.
Having his own business was proving increasingly difficult for the sole fact that he didn’t know how to reach the right target audience his product was meant for. Most entrepreneurs go through this phase especially those who are very new to the business world. How then can a startup easily identify his/her target market best suited for the products/services offered?
- Narrow the market using the funnel approach and pinpointing the exact need your product/service fulfils.
Put into consideration the age, buying power, geographical location and even marital status of those whom you would want to market to. Remember that for every category of persons, their needs would differ. What a stay-home mum with kids would require is not the same as what a working-class mum would need. So in considering your market, though your product may be for a specific gender e.g women, it would vary in the categories where different women fall into. Research shows that about 50% of millennial women would shop more than two times a month in comparison with the 36% of older generations. So if you are into the clothing business, you would know what class of women to take your products to – those who need them and can also afford them.
- Collect information
This involves carrying out surveys via newsletters or bulk emails with prospective demographic groups. You could also work together with a marketing firm who will be generous enough to share or help you gather pilot or test data. However, you can get enough data for your surveys to help you put together the positive responses your product or service gets in the various demographic groups.
Having a business with an existing strong competition requires more research. Find out what demographic groups are patronizing these products or services? At what time are they purchased? Are these products popular among a particular sect? What kind of customers use these products/services?
For every business niche you want to establish in, be sure to always be in the environment where similar business thrives so you can take down useful information that would help your startup. Your family and close friends are also a source of data for you too. In fact, they make up the first group that you source information from.
Run your products/service by them. Do they find what you are offering interesting and nice? Would they purchase from you if you were a regular business owner with whom they have no connection? Do they find your business solving a need that they have?
Colleagues at work, acquaintances, mentors are not excluded. Get them all to critically examine your products or service and constructively criticise where it is necessary. If it is something they can try, then give them to use and let them give you their feedbacks. They may even be able to point to you the specific market that would find your business really useful.
Getting the right information would help you map out your strategies on how to launch into the market and gain a strong momentum with a sustainable rate.
PHOTO CREDIT: Medium