Getting to Know Your Online Target Market

Written on Tuesday, August 2nd, 2011 at 7:59 pm by Adaire
Filed under Financial Freedom.

It is true that the internet has provided a medium to capture a wide range of markets regardless of age, gender, purchasing power, and other market profiling indicators. However, just like products sold in shops, familiarizing yourself with your product’s target market is the key to your business’ success.

There are several key things to take a look at when researching about your target market, and some of them have been highlighted in the Internet Marketing TnT article: “How to Do Research for Your Internet Business Product”, by Michael Tasker.

Product Demand
One of the things you research in any business is the demand for your product. For online businesses, the simplest thing to do would be to take a look at what people are searching for when they go online to shop. In his article, Michael highlighted the use of Google’s keyword tool, which tracks how many searches are conducted using keywords related to your product within a month. Determining the popularity of Google keywords related to your product is a good way of gauging the market demand– after all, people wouldn’t be looking for something they don’t want, would they? :)

When researching about the demand for a product, Michael also suggests that you take a look at websites like YouTube, Amazon, and ClickBank as well. These websites provide you with various bits of information that will prove to be useful in your research. YouTube has become a popular go-to site for people looking for solutions and product reviews, so it’s always a good place to see what kind of things your target market is looking for. Amazon is also a good source of product reviews, and taking a look at the number of people buying a specific product from this popular online store is a good way to gauge the demand for that product. Aside from viewing sales statistics for online stores, you should also take a look at the affiliate sales statistics on affiliate networks like Clickbank, because these statistics can tell you a great deal about which products are popular across a variety of websites.

Market Saturation
Keyword research isn’t the only thing that Google is good for; it also helps you determine the saturation levels of your target market. A market that is highly “saturated” means that the product is already so widely distributed that it’s not very likely that demand or sales will grow any further, unless there is an increase in the actual population of buyers.

In the online marketplace, levels of saturation can be determined by the number of websites that show up when relevant business keywords are used in Google searches. All you have to do is simply run a Google search on your keywords and take a look at the search results. How many of those are websites are selling a product that’s similar to yours? If your search results are composed of more than two pages of these websites, that means that there are already too many competitors out there, and you may want to think twice about your target market. A highly saturated market segment is something you want to avoid targeting because there’s too much competition, and that will make it very difficult for you to compete with other sellers.

Economic Value
What if you discover that your target market is not saturated at all? Wouldn’t it be a good idea for you to hop to it and take advantage this discovery? In this case, Michael says that you shouldn’t just assume that you’re the first to discover a gaping hole in the market. The lack of competition could be a sign that others have already tried to sell products or services that are similar to yours, only to discover that they had no economic value.

A good way to determine the economic value of your product is to take a look at the advertisements that appear at the top or the right hand column of your Google searches. Those are paid ads that were purchased through the Google AdWords service. The presence of two or three paid ads indicates that the product was so profitable that their sellers could afford to spend money on these ads. If there are no paid ads at all, then the product may not be worth your time and money.

Customer Engagement
Another important thing you need to know is how to engage your target market. It won’t be enough just to show them your product and their benefits; to turn your online window shoppers into actual buyers requires you to build a reputation of being trustworthy. To do that, you have to know what to say to your potential customers to assure them of the quality of your product and the integrity of your services. Conducting customer surveys, reading product reviews, and asking for feedback from your active customers will help you tweak your strategies and come up with new ways to engage your customers in a positive way.

Conducting all of this research may seem tedious, but it certainly won’t be a waste of your time. In order to succeed in the online market, you need to invest ample time and resources in online market research until you get a crystal clear picture of who your target is so you can win them over and leave your competitors in the dust. :)

Adaire


Image by: Danilo Rizzuti / FreeDigitalPhotos.net


Leave a Reply

Spam Protection by WP-SpamFree