How to Define Your Business's Market - dummies

How to Define Your Business’s Market

Define your business’s market, who your business’s customers are, so that you can target your marketing decisions directly at potential customers who fit your customer profile. Narrow your customer definition by using demographic facts to zero in on exactly whom you serve.

  1. Start with your own general impressions to define your customers in broad terms.

    Base your initial definition on age, education level, ethnic background, income, marital status, profession, sex, and household size. For example, are they largely male or female? Do they have high school, undergraduate, or graduate degrees?

  2. Break your market into subgroups.

    You might categorize your market by the kinds of products purchased or the time of year the customers do business with you.

  3. Verify your answers by asking your customers.

    You can incorporate questions into information conversations you have during inquiry and sales contacts. Or you can formally present questionnaires or surveys for your customers to fill out. You might even set up a focus group to gather reactions and information.