How to define the target market for your online business

E-commerce offers you a lot of leeway and freedom when it comes to starting your own business. The options are practically endless, and you can sell anything you can think of, from blocks of Himalayan salt for your feet to elegant cured meat slicers. With seemingly limitless options, you might wonder why choose a niche and target audience when you can simply target everyone? What could possibly go wrong? Starting your online business with the idea of "targeting a wide range of people" could be fatal because it means your marketing strategy lacks a clearly defined objective. If you decide to target everyone, you might as well not target anyone. It's best to think of your marketing message as a dart you're aiming at the target. It would be easier for you to focus your energy and attention on hitting one target at a time, rather than hitting two separate bulls simultaneously with a dart in each hand. If you want your marketing efforts to be effective, then you should clearly define what you're selling and the people who will ultimately be most receptive to purchasing your products. When starting your online business, instead of scattering your attention and money in all directions, focus instead on the greatest potential. Let's move on to the next topics on defining the target market.

Understanding the difference between target market and target audience

Before we talk about defining your target market, let's first analyze the meaning of target market and target audience itself. A target market is a group of consumers who share similar characteristics—be it age, gender, hobbies, lifestyle preferences, etc.—that make them more likely to need and desire certain products because they meet their needs, desires, and lifestyle. Keep in mind that the target market is the intended end user of your products. Defining your target market for your online store can benefit you and your marketing strategies in many ways, primarily because it saves you the effort of reaching a broader audience who doesn't care about or even need your products. If you have a specific goal, you can generate more revenue while spending less on a limited audience who wants and needs what you're offering. Now let's talk about your target audience. The words "target audience" are often interchanged with "target market" and can be synonymous. However, this isn't always the case. While we think of the target market as the end users of your products, your target audience is the recipient of your marketing message. The recipient of your marketing message and its end user may not necessarily be the same. For example, if you sell children's clothing, your target audience can't be children. Babies can't process your marketing message, so they can't be your target audience. Instead, your target audience is parents and adults, while your target market or end users are children. The target market and the target audience can be different, but they can also be the same. For example, if you were selling streetwear and your target market included young adult consumers, you would most likely want to focus your marketing message on the same people. This makes the target market and the target audience the same.

Identify the problems your products solve

Now that we understand your target market and audience, let's talk about solving your customers' problems with your products and your niche. Keep in mind that you're not just selling products and services, but building a business that solves your potential customers' problems or pain points. A pain point is a specific problem your potential customers are experiencing. Knowing your customers' pain points will help you solve their problems more effectively and will also bring you closer to knowing how to convince them to buy your products. An effective way to sell your products is not to focus on the product itself, but to emphasize the end results of satisfying your customers' needs and wants. To identify the solutions your products provide to your customers, you must first analyze your products. List your main products and categories and ask yourself: What wants and needs do my products fulfill? What problems do my products solve? Who is most likely to have this problem? For example, an online store selling innovative and smart kitchen tools offers its customers the benefit of cooking meals faster, neater, and more efficiently. You're solving the problems of busy men and women who don't have much time but want the benefits of home-cooked meals; you're selling them great convenience in the kitchen. Once you identify the problems your product solves and the benefits it can offer your consumers, you will begin to have a clearer picture and understanding of the type of person who might need your products.

Know your target customer

Now that you understand the problems your products can solve, we can start profiling the people most likely to buy them. To do this, you need to ask yourself some specific questions about your goals. Ask yourself who your target customer is. Important factors you need to determine also include:

Age or generation

This will be one of the most important aspects you'll need to determine. How old is your target market? You don't need to know the exact age of your consumer, but rather their age range. For example, you could target Millennials, born between 1981 and 1999.

Position:

You need to know where in the world your customers live to optimize your marketing strategy. Knowing where your customers live will help you understand when they're most active online and when you can maximize your social media ads.

Hobbies and interests:

Ask yourself if your target market has specific hobbies or interests that align with the concept behind your store. If your store focuses on a specific hobby or interest, you need to ensure there's an existing group of people who will be interested in your online store.

Income level

You need to know the income level of the people you're targeting because income affects purchasing power. For example, if you're targeting college graduates, you can expect them to have lower incomes and need to adjust the price of your product to their circumstances.

Life stage

We all go through many stages in life, so you need to ask yourself what stage your customer is in. For example, your customers may be newlyweds, retirees, graduates, parents of young children, etc. These life stages can influence people's interests. For example, new parents will be interested in baby accessories. Life stage can also influence purchasing behavior, as newlyweds may be more likely to make more purchases on average.

Purchasing power and frequency

You need to consider things like how much your target customer earns annually, how much debt they typically have, and how much disposable income they have, as these factors influence their purchasing power, habits, and frequency. Having all these factors under control will help you paint a good mental picture of the people you want to target. Don't be afraid to get specific and detailed!

Evaluate your results

Your business must be profitable. Even if you've identified the benefits of your products and your store's target market, you must first evaluate your results because the market you're targeting may or may not be worth serving. You have to ask yourself:

Are there enough people for this target market?
Is my target audience easily and readily accessible?
Can my target market afford these products?
Are there many competitors in this niche?

The type of information you need may already be readily available online. Try doing some online research on your target market, reading blogs, and checking out some analyses and statistics on the type of market you're targeting. If you can find survey results, even better. Otherwise, you can start your own survey and ask for feedback from your customers.

Conclusion

Defining your target market may take time, research, and objective consideration on your part, but when you finally know who you can appeal to, marketing your online store and your products will be easier because your marketing message will reach the right audience. Make sure you understand the benefits your products can offer and what demographic you'll need to get the most out of what you're selling. Building your online store with a well-researched target market will help you save time and money and boost your sales.

Contact us

What's your opinion on the importance of identifying your target market? Are you looking for the ideal target market and audience for your online store? If so, and if you have any questions or concerns, feel free to start a conversation with Yastime. We'd love to discuss your online business plans and share practical solutions to help you achieve your e-commerce and dropshipping goals.

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