Determining the Target Audience of Your Small Business

The goal of your market research is to determine your sales demographics and establish a target audience. This is to whom you will gear your advertising and marketing campaign. Just as children's games and toys clearly state on the box, for ages 7 through 12, nearly every product or service has a

specific demographic group that will be most interested in spending money to buy the product or utilize the services offered. The number of businesses that have failed because the owners have not taken the time to determine their target audience is staggering.

Some products and services, such as selling soda or providing haircuts, will span a wide range of potential customers. Therefore, it is important to create various marketing campaigns to reach the different segments of this vast market that you are most likely to attract. Conversely, other products and services have a narrow audience and need to be targeted in a more specific manner, such as a new service for dermatologists. Niche marketing can be very beneficial and cost effective if done properly.

Some questions to ask yourself when outlining your target market or demographic group include:

• What is the age range of the customer who wants my product or service?
• Which gender would be more interested in this product or service?
• What is the income level of my potential customers?
• What level of education do they have?
• What is their marital or family status?
• Is this a product or service they need or a luxury item?
• How will they use this product or service?
• What will draw them to this product or service? (Easy availability? Low price? Personalized attention? Special features?)
• Which, if any, special features are most appealing?
• What do they like or dislike about the product or service in general?
• Is this an impulse buy or something they are saving up for?
• What is the common method of payment for this product or service? (Cash? Credit Cards? Installment Plans?)
• Where do they gather their decision-making information? (The Internet? Newspapers? Magazines? Books? Television?)

These are just a few of numerous categories in which you can break down your target market.