81.83 billion USD was the revenue made by the market research industry in the year 2022. Also, the same amount, or even a bit higher, is projected for 2023. This massive amount of revenue and growth indicates that this industry is not only large but important as well. The question here is what makes this industry important, and why is it growing so much?
Well, there are many reasons for this, but one that contributes a lot is the organizations' need to find their target audience. Many companies are outsourcing market research to firms, which is fueling growth in the research industry. In this article, we will focus on the target audience, a significant contributor to this trend. Let's dive in without delay.
What Does Target Audience and its Understanding Mean?
Target audience refers to the people for whom a particular product or service has been created. In your case, it will be those people who are most likely to be interested in your offering. For example, anyone can buy toys, but in reality, it is meant for a specific group of people, i.e., children. Therefore, here, the children are the target audience of that toy manufacturer.
When it comes to the understanding of the target audience, most often, people consider it as a process where one tries to know the general characteristics such as age and gender of their target audience, which is just half the process. It involves in-depth research of the audience. From their likes to dislikes, their hobbies, struggles, interests, and demography, every possible trait of theirs needs to be understood well.
Source: Koronapos
Why is it Important to Find the Target Audience?
Tailored-Marketing Strategies
In simple words, marketing means promoting your products or services across various mediums to increase their sales. It is crucial to have a clear understanding of your target audience. From their likes to dislikes, every possible information related to them should be there with you; only then can you craft an effective marketing strategy.
For example, the target audience of a luxurious watch brand is those with high income and value craftsmanship & exclusivity. Using this insight, the brand can now create its marketing strategy, keeping these individuals in mind, thus a more effective one.
Importance of In-depth Research
In the above example, it is not necessary that individuals with high income would go for expensive watches. Those who admire craftsmanship and exclusivity have higher chances to do so. Thus, the marketing strategy crafted using both these insights would perform better than the one crafted using the first insight only. So, it's important to understand your target audience as much as possible.
Better Products & Services
When you don't know about the target audience, you will create the product or service based on your opinions or other external factors. The product will have features you feel are necessary and will lack the ones you are not confident about. The chances of getting results this way are minimal as the final product has been made according to you and other external factors.
But when you are aware of the target audience, their likes, dislikes or the areas they are struggling with, then the product will be made keeping them in mind. You can meet their needs by offering products or services with features they like and avoiding ones they don't. Overall, the final result will be the one the target audience wants or likes, and thus, it will have a better chance of performing.
For example, a fitness app can target busy individuals by providing them with time-efficient workouts. It can also have stress-relief features to help them cope with their hectic lifestyle. You can see how the product has become much better with manufacturers being aware of their target audience and other traits related to them.
Competitive Edge
We usually call those people our competitors who offer the same products or services as we do. But here, you need to get a bit more in-depth. Your real competitors are those with whom you share the target audience, i.e., you both target the same group.
Let's take an example. Suppose you are in the clothing industry. In that case, every other clothing manufacturer is your competitor. But is it difficult to have a competitive edge in such a crowd? The only possible way to make it easy is by going in-depth, i.e., to find competitors with whom you can compete.
Let's go one step ahead and consider that you manufacture clothes from sustainable products and offer customizable designs to target a specific audience. Now, your competition is not with all the clothing brands but those targeting the same audience. You can see how the competition has been reduced by identifying and understanding the target audience. This is how it helps you in getting a competitive edge!
How to Find the Target Audience?
Online Surveys
Creating Online Surveys is among the most common forms of finding the audience. The reason why organizations use them a lot is because it allows them to understand them in depth. They can include as many questions as they want, but also it should be within the limit. Too many questions can work against them as well since people don't usually spend a lot of time filling out forms, especially when they are too long.
So it has its pros and cons, i.e., if filled, it will provide you with a lot of insights, but it also has the chance of getting ignored. In the latter case, all your efforts will be wasted, but remember, it is part and parcel of marketing, so never stop trying to find your target audience.
Telephone Interactions
Another way of finding your target audience is by directly talking with them. A lot of organizations make calls to random people and ask them about their interests, likes, and other kinds of information. In most cases, the very first question is whether they are interested in a particular service and product or not. When a customer provides positive feedback, the organization engages in conversation and asks questions to better understand their needs. This information is then used to improve products and services.
With telephonic calls, you are not only finding your audience but also promoting your offerings. A win-win situation. Another thing is that people sometimes may not respond positively, so don't take it seriously; move on with the next call.
Face-to-Face Interactions
This is the same as the telephonic interaction. The only difference is in the medium. Instead of talking to them on the phone, organizations interact with them in person. There are various ways of face-to-face interactions, among which the most common one is the door-to-door visit. This is similar to a salesperson's role, but instead of selling, employees interact with people. These functions may be performed together depending on the company.
Another face-to-face interaction that is getting very popular nowadays is taking interviews in public places. Organizations' representatives are out in crowded places interacting with people to find their target audience and understand them as much as possible.
Social Media and Online Tools
On social media, all you have to do is look for your products and services and see what kind of people are interacting with them. By doing so, you will get your target audience. The next task is to understand them by performing research on them. Keep in mind that this research should be done ethically. You have to respect their privacy, and it shouldn't be violated by any means.
Similarly, on the web, you have to look for your services and products and then, using online tools to understand their traffic. There are many online tools that will help you find your target audience and provide information related to them as well. Make sure you opt for genuine ones only, as a lot of online tools are fraudulent.
FAQs
Q. Why do I need to define my target audience?
Defining a target audience is essential as it will help you tailor your products, services and marketing strategies to meet the requirements of your ideal clients. Moreover, it ensures your efforts are focused and effective.
Q. Can my target audience change over time?
Yes, it can. These changes usually occur due to market trends, product evolution, and shifts in customer preferences. You must be aware of these changes to ensure your strategies remain relevant.
Q. How often should I revisit my target audience strategy?
We suggest you assess it regularly as the market and customer behavior changes frequently. Keep a close eye on its performance and make changes whenever required.
Q. What will happen if I target the wrong audience?
In that case, your marketing campaigns will be ineffective, all your resources and efforts will go in vain, and you will miss out on opportunities to connect with potential customers. A proper audience understanding ensures your efforts are directed towards the right people.
Q. Can I target multiple audiences?
Yes, you can target multiple audiences. This practice is usually followed by businesses offering diverse products and services that are meant for different groups of people.
Conclusion
Organizations have now understood the importance of finding their target audience and, thus, are ready to spend more resources on it. It is evident that, on average, around 10.8% growth is seen by this industry every year. Being aware of your target audience means having tailored marketing strategies, improved products and services and better positioning in the market. We're sure you don't want to miss out on these benefits, so it's time to find your target audience and make the most of those insights.
