Dreaming of a Growing MSME Business? Identify Your Market Target Using 5 Tips!

While running MSME (Micro, Small, and Medium Enterprises) business, one of the key considerations is the market target. By identifying the precise market target, you will be able to determine the appropriate marketing strategies. But, what is a market target anyway? Find it out in this article!

Market Target Definition

A market target is a group of people having potential characteristics as customers. Market targets can be categorized into a number of demographic types; ranging from age, gender, location, income, hobby, occupation, passion, to lifestyle. All these elements can be identified by business owners to determine the market segmentation for their products.

Market segmentation is an information grouping based on the demographic data of prospective customers. Having the knowledge of market segmentation will facilitate you as a business actor in designing and making decisions, packaging, and distributing your products. Hence, your product target is more concentrated and thus, leads you to more effective sales.

Let’s say you are establishing a cosmetics business. Products that you are going to sell are beauty products, such as face powder, lipsticks, perfumes, accessories, shampoos, soaps, skincare, and so on. To make the promotion of your new store effective, you will need to determine the market target and segmentation. Given the type of your business, teenage to adult women will be potential targets.

It will be a whole different case if your business is a food stall. You sell rice and various side dishes that are ready to eat. Your market target and segmentation will be more diverse, constituting housewives, employees, students, college students, and even retirees. Setting sales targets means you are well-versed in your own business potential. With careful implementation, your business can bring immediate profit.

5 Tips to Identify Market Target for MSMEs
So, how do we identify the right market targets? There are five tips to identify market targets for your MSME business, whether it is still under planning or already in operation. What are they?

1. Know your products
First, know your own products. Before determining the target, you must first know the ins and outs of the products you are selling. Identify some key points that will attract potential customers to buy your products. Starting from the value, strengths, to the weakness of your products. Therefore, it will be easier for you to identify the market targets.

2. Find out what the market needs
Next, find information about the market’s current needs. You can explore various prospects to create your own business opportunities. For example, a new school in your neighborhood is currently under construction. There will be many students who need photocopy and printing services for their school assignments.

Well, you can leverage this chance by establishing a photocopy and printing business to facilitate the students’ needs. You can also provide a variety of products, such as stationery, school caps, belts, socks, and snacks at the same time.

3. Considering competitor’s market targets
Competition is a definite element in business. Your business will not be the only existing one. Therefore, try to observe your competitors; find out what kind of market targets they are going for. By having knowledge about your competitor’s market targets, you will be able to locate the available gaps and opportunities to target other goals.

For example, you and your competitor are both running a rice bowl business. Their market targets are people within its operation area. You realize that they do not provide an online payment method; this means cashless consumers are not part of their market targets. Leverage this opportunity by establishing online payment options that people cannot find in your competitor.

4. Communicate with customers
Communicating with customers is not merely to ensure their satisfaction with the services you provide, but beyond that, it can help you explore other opportunities. If you are close with your customers, you can learn what they want or expect.

For example, you own a grocery store. Later, you learn that the customers actually wish to have water gallons and LPG gas delivered to their homes. With this information, you can start offering water gallons and gas home delivery by charging an additional fee. Sounds profitable, doesn’t it?

5. Identify and evaluate the market targets
If you have identified the market targets; now you only need to execute the marketing strategies you have prepared. If everything has been applied, hold a periodic evaluation. Find out the things that need to be improved or enhanced. In addition, you may also evaluate the effectiveness of your market targets. If it is not quite effective, then try to find solutions to improve it.

So, those are some tips that you can try to identify market targets for your MSME business. Quite easy, right? If you succeed in identifying the right target, your business will obtain a huge opportunity to develop more rapidly. It will also build your business to be more focused and purposeful, thus making the implementation of marketing strategies more effective. Good luck!