How to identify and reach your target audience

Key takeaways

• Your target audience is the group of people or businesses most likely to buy and benefit from your products and services

• This group is typically defined by shared traits, such as age, gender and lifestyle and behaviour

• Understanding your target audience enables you to develop new products, expand into new markets and tailor your marketing strategies

What is a target audience?

Very few businesses offer products or services that everyone wants or needs. Instead, they have a target market – a group of consumers or businesses they want to target with advertising because their products or services are of most interest to those individuals or companies.

Whatever sector you’re in, your target audience – or core customer base – consists of people whose desires, values and needs most closely align with the products or services your business offers.

This group is typically defined by certain demographics and behaviours. For an accounting firm, it could be freelance professionals or small businesses. For a sportswear manufacturer, it’s more likely to be athletes and gym goers.

Either way, it’s important to know who you are trying to attract when generating business ideas and writing a business plan.

You may also need to demonstrate that you have considered your target audience to qualify for a business loan.

What’s the difference between a target market and a target audience?

The terms target market and target audience may seem interchangeable. However, there is a subtle difference between them.

While a target market is the broad group of people or businesses likely to buy your products or services, your target audience is the subset at which you aim your marketing activities.

How to identify your target audience

Once your business is up and running, the easiest way to identify your target audience is by analysing your customer data. You can do this using demographic segments such as age, gender, education level, occupation and marital status.

You don’t have to stop there, though. The best marketing campaigns also consider psychographics such as behaviours, lifestyle and values.

So, try asking questions about your customers, including:

• What are their life goals?

• What do they do in their free time?

• Where do they work?

The aim is to get as much insight as possible into what makes these people tick and – crucially – what makes them buy your products.

It’s also important to do market research on a wider level – especially if you are trying to start a new business and have no customer data of your own.

Finally, you need to conduct an in-depth review of the products and services you provide or plan to offer.

Questions to ask during this process include:

• What problems do your products or services solve?

• Who do they appeal to?

• Why do those people need them?

The more detailed your analysis, the better the picture of your target audience, and the easier it becomes to sell to it.

How to find your target audience

Ways to find your target audience as a new business owner include:

Research the marketplace – There are lots of handy online analytics tools available to help you find your target audience. For more ideas, see out our five-minute guide – How to do market research

Check out the competition – You can use online directories to track down local competition or do a simple Google search to find other companies offering similar products or services. To find out how to really drill down into this area, you can read our guide – How to do competitor analysis

Segment the market – Use demographics and psychographics to identify the main groups likely to buy your products/services

Create customer profiles – Imagine one or more individuals in this group to gain a deeper understanding of their motivations (you can see an example of this below)

Customer profile example

If you know your target market is women aged 20 to 30 who live in urban areas, you might come up with a profile like this:

Amy, 26, is a receptionist who lives in Birmingham in a shared flat and enjoys running and amateur dramatics. Of Indian descent, she was born in Leicester and is close to her parents. Recently engaged, she is saving up to buy a property with her partner.

How to reach your target audience in 5 easy steps

1. Use market research

Conducting market research using the techniques outlined above helps you understand your potential target audience’s pain points, what they want, and how they spend their money.

2. Delve into your customer data

Analysing both internal and external data helps you to refine your target audience and split it into subgroups you can market to in different ways.

3. Ask your clients

Feedback from existing and potential customers and clients is hugely valuable when it comes to reaching your target audience.

Reviews, social media comments and surveys can all provide a wealth of useful information, especially when you look for patterns.

4. Take advantage of social listening

Tracking the conversations your target audience is having about your brand and related topics is a great way to improve your understanding of the people in your target group.

5. Consider the competition

What other companies offer comparable products and services? Conduct competitor analysis to find out how much do they charge? What marketing do they do?

Knowing your competitors helps you work out how to encourage people to choose you over them.

How to market to target audience: examples

One of the best ways to learn how to market to your target audience is by studying brands that do it well. Examples of companies that use target audience research to hone their marketing campaigns include:

Nike

Nike’s target audience consists of a wide range of sporting enthusiasts. But the brand often targets specific subgroups, such as women in sports and people trying to get fit. It targeted the latter group with its 2012 campaign Find Your Greatness.

Domino’s

Pizza chain Domino’s tailors its social media marketing campaigns to different segments of its target audience based on their chosen platform. On TikTok, for example, it tapped into the trend for astrology videos by matching each item on its menu with a zodiac sign.