Identifying your target market is giving you the opportunity to create more effective strategy, to prioritize better the resources that you have, which for starting companies are often very limited, and to increase the chances of positioning your product successfully in the market segment. For startups, preparation is everything. By conducting research and asking the right questions, you are able to determine your target audience and potential customers more effectively, increasing the chances of understanding better the needs of your clients.

Who is your target customer?

This is the most important question entrepreneurs must answer – who is their primary customer. Many companies fail because they unsuccessfully identify the primary customer and concentrate on the wrong group of people. Starting companies must know who their customers are and what they want in order to deliver accordingly and, therefore, make a profit.

What do your customers need and want?

This question may sound very difficult to answer, but you would be surprised to find out how easy it can actually be to get the answer. Sometimes the thing that you have to do is actually very simple – here in particular it is. If you want to know what your customers want – just ask them! Entrepreneurs concentrate on the complex part of compiling information through researches and analysis, which is not something that should be overlooked, of course, but often the most accurate data can come from direct pools and conversations with the clients.

Don’t underestimate the power of communication with your clients. Check out these four powerful market research tools that will help you to connect effortlessly with your customers and receive the data that you need to make better business decisions.

What makes your product different and better than the rest?

Once you know who your customers are and what they want, it is important to answer the two following questions: What products do they currently use? and How is your product better than these products? Now is the time to determine how you can attract the attention of the customers to your product by pointing out the advantages that your product has before the competition. By knowing who you are competing with, you are increasing the chances of creating more effective strategy and marketing campaign.

Answer these three questions honestly and you will be able to effectively identify your target market and target customer.