In the era of 21st century and phenomena of globalization, this is very important for an entrepreneur to identify a market for the products and services. The essence of selling and purchasing depends on the market in which it prospers. There are different things that should be kept in mind while identifying the target market, below are the highlighted ones:
- Research: Every business needs a thorough research on the nature of its products and services. You have to identify whether your product is perishable or not. If it is perishable, you will not consider it to sell in such a market where the required product gets destroyed with no time. Through research, you will get to know about the market which suits your business interest.
- Competition: Identify your target market considering the cause of competition. After analyzing the competition factor, an entrepreneur plans its product launch and distribution strategy and work on it. The entrepreneur cannot sell the product line in such a market where there are big names without any selling strategies. There are so many shampoos in the market and it belongs to different consumers. In order to introduce a new shampoo, one needs to assess the strength of existing competitors and their products.
- Consumers: The target market enriches with the taste of its consumers. Consumers are the ones who trigger a market for a certain product and service. Their demand of a certain product creates a market of different niche. People of different ages have different tastes and preferences. So, producers or entrepreneurs are required to understand through different surveys in order to assess their product market and what they can do to make it better for their consumers. For Example, if any FMCG has introduced a product line of its cupcakes and after introducing it, they should keep on working better in terms of its packaging and tastes.
- Regions/Place: The most important factor in defining the target market is the place/region in which an entrepreneur is planning to introduce its business. The conditions, background and season of a place matters a lot in the success of any product or service. Each commodity has its own target market as per the conditions of its place. Say, a snow tire company would be more interested in the consumers situated in the northern parts of the United States and in the mountainous regions.