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| 6 Reasons Why It's Crucial for Businesses to Know Their Target Audience. |
What is a Target Audience?
A target audience is a group of people who share common characteristics and are the actual or potential customers of a product or service.
For instance, a company producing children’s toothbrushes has a clear target audience—mothers with young children. But it doesn’t stop there. If the toothbrushes are expensive, the target audience narrows down to mothers with young children and a household income above average.
If the product is only available in certain areas, location also becomes a factor.
Some businesses make the mistake of thinking their product is for everyone, but that’s rarely the case. Different people have different needs.
Even something as common as soap can be marketed differently depending on the consumer.
For example, women may prefer a gentle formula, men may want an all-in-one solution, retirees might seek budget-friendly options, and factory workers could prefer something that removes heavy grease.
Understanding your target audience is essential, and here are six reasons why.
1. To Know Who You Are Really Serving
People's behavior as consumers is usually predictable, so when you study your target audience, you start to see a clear picture of who your real customers are.
This helps you better understand who exactly benefits from your product or service.
However, sometimes you might be surprised by the results. For example, if a business produces beard grooming gels, the obvious audience might seem like bearded men.
But what if most of the buyers are actually women? Maybe they’re purchasing the product as a gift or using it for a completely different reason, like styling their eyebrows.
Suddenly, you’ve discovered a new target market, and you might even consider adjusting the product’s fragrance or packaging to appeal to this unexpected group.
2. To Create Unique Selling Propositions (USP)
A unique selling proposition (USP) highlights the specific benefits of your product, making it stand out to consumers.
But how can you craft a USP if you don’t understand what your customers need? You might guess, but if you get it wrong, you waste time and money.
For example, a company making orthopedic pillows could take different approaches based on its audience. If the target audience is people over 30, the USP could focus on reducing back pain.
If it's women, the selling point might be that the pillow helps prevent sleep wrinkles and slows down the appearance of aging. The product is the same, but the messaging changes depending on who you're speaking to.
3. To Improve Advertising Efficiency
Understanding your target audience is key to effective advertising. Take targeted ads, for example. If you have a small budget and sell a product for men with certain health issues, you wouldn’t want to target everyone.
That would be a waste of money. Instead, you narrow your focus to men aged 50-79, making the ad far more effective. The result? More clicks, more sales, and a better return on investment.
4. To Develop the Right Tone of Voice and Design
In today’s world, businesses don’t just sell—they build communities. Knowing your audience helps you choose the right tone of voice, content, and even social media style that will resonate with them.
For instance, one brand's audience might love humorous memes, while another group prefers expert advice delivered in a serious tone.
Using the wrong approach could mean missing the mark entirely with your potential customers.
5. To Help Grow Your Business
Knowing your audience helps you understand where your business could go next. It doesn’t always mean making drastic changes, but even small adjustments can make a difference.
For example, if a company produces luxury face creams, and inflation forces them to raise prices, they could lose part of their audience who can no longer afford the product.
Instead of losing these customers, the company might explore cost-saving measures like simpler packaging to keep prices stable and retain loyal buyers.
6. To Attract New Customers
Studying your target audience can reveal opportunities to attract new customer groups. Maybe your product initially targeted women, but it could also appeal to men.
By adjusting your marketing strategy, you can tap into a wider market, increasing sales and growing your business.
How to Identify Your Target Audience
Hiring marketing professionals is often the best way to get accurate data on your audience. They use various tools, including surveys, interviews, and analytics platforms like Google Analytics, to gather insights.
You’ll want to explore several key aspects, such as:
- Demographics: Age, gender, income, education, family status, etc.
- Location: Where your customers live or work, from countries to specific neighborhoods.
- Personal characteristics: Values, interests, hobbies, fears, and favorite influencers or brands.
- Consumer behavior: Do they shop online or in-store? Are they impulsive buyers or careful planners?
By thoroughly understanding these factors, you can better serve your customers and grow your business more effectively.
In short, knowing your target audience is a game-changer for any business. It allows you to craft your marketing strategies, develop more effective advertisements, and ultimately, better meet the needs of your customers.
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