Wednesday, January 20, 2010

Determine Your Target Market

If you're going to get serious about your Etsy or Artfire or other small business, you need to determine your target market.  This helps you with new product development and advertising.  You can save a lot of time and money when you know your target market.  If your target market is young, hip, urban women you don't want to design a product for middle aged men.  Your regular buyers won't be interested and you'll spend too much in advertising to try to reach one group for one product. 

A target market is generally defined by gender, age, and socioeconomical status.  Socioeconomical status is especially important if you are selling nonessentials.  If your target market is collect students, you will have a hard time selling $50 widgets.  On the other hand, college students may be very willing to buy a few $5 widgets.  How much disposable income a group has also helps with determining price points and product lines. 

You also need to understand why your target market is buying your product.  Is it an essential?  Is it a small splurge?  Does it make them feel good?  Tell them why they need your product and talk in their terms.  You need to reach out and talk right to your target audience in their terms and ways that will capture their attention.  Use colors and slogans that your target audience will identify with and/or find familiar. 

On the internet, find out where your shopping hang out.  Do they read decorating blogs?  Do they Twitter a lot?  Facebook addicts?  Find out where they are and you can concentrate advertising there.  You may spend more per ad, but it should be more efficient.

I'm sure there are more tips, I'm not a marketing expert by any means.  I'm learning as I go and blogging to maybe help a few others along the way.  Please add any additional comments or tips.