Identifying Your Target Market Through Demographic Research
Your business cannot develop an effective marketing strategy without employing demographic research. Though this may sound daunting, demographic research does not have to be expensive or complex. Regardless, do not dismiss the importance of demographic research. As a business, you will need to identify the customers whose specific needs your product and/or services can satisfy. Because no one business can be all things to all people, demographic research makes it possible for you as a business to know which people are not having their needs met.
Demographic research breaks down a region you are interested in targeting in specific terms such as age, gender, income level, occupation, education, marital status, and number of family members. Devoting some time online can help you attain these statistics. The most common resource used to find this information is the Country and City Data Book, published by the U.S. Department of Commerce. This government data gives you the most recent data census in your market area. Besides utilizing this information, it is a wise idea to think about where and how your targeted customers live. Are they city residents using public transportation or moms in mini vans running car pools throughout the day? Weather in your market’s region often determines whether its residents spend most of their time indoors or outdoors, a statistic that could impact your targeted market depending on your service and/or product. In accordance with income, do they live a luxury lifestyle or are they conservative with their money? This vital bit of information may determine what you can sell to them as well as at what price.
After geographic and lifestyle considerations you need to consider the actual needs of your ideal audience. If you are interested in opening a spa and offering luxury services and your target area is in a region that has little money for ‘extras’, you will need to rethink your targeted geographic region. These observances combined with the data from the Country and City Book will help you put together a customer profile. A customer profile is simply a statement describing your market segment in detail. This informative profile should be consulted whenever you are mulling over decisions about what services/products to offer, for how much and in what way you will let your targeted audience know they exist. Demographic research is key to identifying your target customer and their needs.
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