Consider your market

Not everyone will want to buy your product, service or experience. It's important to understand who your potential buyers are so you can direct your focus on them.

What type of people will buy from you and who will you target?

• Make a list of characteristics of the people who will buy your product or service.
• Where do the majority of these types of people live and what does this mean for your business? Conduct some market research to find this out. There are many ways to find market research data. You could:
  • visit potential competitors to observe the types of customers they attract
  • talk to people in the industry
  • ask potential customers their opinions – it's important to assess for yourself the needs of individual customers
  • access statistical information from the Australian Bureau of Statistics, industry associations and chambers of commerce; specialty trade or industry journals, research reports and publications; business directories; libraries/universities; small business corporations/advisory services.
• Complete our customer profile chart to help assess your potential market.
• Divide your market into groups of people with similar preferences and needs.
• Learn about the basics of selling.
• Learn about the basics of marketing.
• Use our market research kit to research online.
• Find your industry association.

How will you reach different segments of your target market?

• Identify smaller groups of people with similar characteristics who might be seeking similar features or benefits from your products and services.
• What sort of marketing strategies will you use for different segments? Marketing can be very expensive so it's important you use appropriate strategies for each particular segment. You could consider:
  • what would entice customers to buy your product or service - what benefits are they seeking?
  • competitive pricing
  • efficient distribution network that matches where your target markets will search for their products, services or experiences
  • packaging and presentation
  • finding prospects
  • promotional ideas
  • potential markets to be targeted and those to avoid
  • where to advertise (e.g. social media, newspapers, magazines, TV,  trade specific publications, direct mail).

Do you have enough time and money to devote to the initial marketing?

• Consider how many people you need to reach to achieve your expected level of sales.
• Consider the cost and time of each promotional campaign. In the first year or two you might need to spend a lot of time and money gaining new clients before you can rely on word of mouth, referrals and repeat customers.
• Complete our marketing actions chart to help plan your marketing strategy.

Also consider...

• View our 7 steps to business success e-learning series and find out how to improve your chances of business success.
• Read our research resources for business and industry.
• See your local council for more information about the local market.
• Find out how to brand your business.
• Read more about tips for effective advertising.