Here are some basics to determine about your target:
- Age and generation
- Geographic location: Country, Region, State, City, Neighborhood
- Net worth
- Marital status
- Family size
- Ethnic group
- Level of education
- Home ownership
- Hobbies: Do they knit, water ski, garden, watch sci-fi movies?
- Buying choices: Do they drive a Mercedes or a Honda? Shop at Target or Saks Fifth Avenue?
- Do they listen to: classical, metal, talk radio?
- Are they technology-minded? Always have the newest gadget or don't even have email?
- Do they seek social status?
- Where do they vacation?
- What industry and sector?
- Years in business?
- Company revenues?
- Number of employees?
- Number of locations/branches?
- Company culture?
Define how the customer purchases and how often, how they use the product and what the motivation is for continuing to use your product. You will also want to explain your sales cycle, how long it will take for customers to make a purchase decision.
Speaking of purchasing decisions... Take a look at your product and compare it to your customers decision making criteria of price, quality, features, return policy, warranty, etc. But also find out what you target prefers in terms of buying experience, packaging, sales people, location, convenience and any thing else you find important. Mix these into your marketing and sales plan!
Now that we have the target and their behaviors defined, how big is the pool? Is it large enough to sustain your business? Is it too large, inviting in competition? Will it grow and how fast? Be ready to back up your claims by benchmarking to other businesses or finding external data to site.
The final piece of the target market is to define trends that can influence your business. These trends might offer strategic opportunities or erode your market share. Discuss how you will address each trend or change in the market place and where you see your product or service meeting the new needs of your consumer.
As always, feel free to contact me with any questions!