Defining the Target Market for your Craft Home Business
Who are your customers? Who will buy your
products?
Do you know your target market?
 |
|
According to Wikipedia, a Target Market is defined as: "… the market segment to which a particular product is marketed." Click here to read the full description
Successful small businesses understand that their products are usually attractive to only a limited audience, so your task is to define that audience, and then target your advertising and marketing towards them.
Doing business without knowing what your target market is limits your ability to reach your objectives – more sales, better market share, and ultimately, more profit.
Firstly, define your product.
You can’t please all of the people all of the time, so why try? Become a specialist in your niche! This is a perfect way to capitalize on a market segment, and you can expand that market in ways that others in your field won’t be able to take advantage of.
Defining your niche or target market before starting your advertising and marketing is important for a number of reasons:
- You can maximize your budget by marketing to a specific niche.
- Having a defined target market makes it easier to develop ideas for new products that appeal to that niche.
- You have a better chance of establishing yourself as a specialist in those niche products, becoming a leader in your industry.
Are you struggling with who your niche market is? It’s really not that difficult, so let’s get started!
Target Market Research
Start by doing a bit of research – find out what your competition is doing, where market opportunities exist, and which markets will be most profitable for your products.
Make a list of all of your competitors, large and small. Visit their stores and websites and gather as much information as you can about their products, prices, policies, etc. Check magazines and catalogs. Create a comparative table and list all the info you’ve managed to get, then try to identify possible market opportunities by looking for areas that are weak or non-existent.
Then ask yourself a few questions:
- If you already have a customer base, is there a particular group that stands out?
- How can you set yourself apart from your competition?
- What products or services are not being offered by your competition that you could offer?
- What is different about the products or services that you offer?
- What does your competition offer that you could improve on?
- What extras can you bring to the market that your competition couldn’t possibly offer?
Don’t analyze the questions too much, write down the answers as they come to you. Once you’ve done that, analyze your answers and it should be fairly easy to determine your niche market.
Target Market Examples
Here
are some examples of niches in the craft
industry:
Tourism
Targeting tourists can be very lucrative – you could create
craft items with specific themes that would appeal to tourists as
mementoes of their trip, or as gifts to take home.
Decorating
Home decorating is a huge market at the moment, with lots of room to
fit in. If this is the niche you’re interested in, examine it
more closely and narrow it down.
Gifting
Also a biggie – most people buy gifts for at least 30 people
a year, and often more.
Weddings
and Functions
Could your craft products be used as table decorations or party favors?
Collectors
There are collectors all over the world in many different categories.
This is a very specialized market, but an interesting one to
investigate.
Retail
This has a number of other segments, let’s explore them
further…
Target Market - Retail
If you’re considering selling to the retail market, you once again have to define which part of that market to target, as it is quite diverse.
High-end
Retailers
Quality is all-important for these types of retailers, but volumes are
not necessarily huge. Service is also very important, and if you can
offer unique products, even exclusivity, that is a definite benefit.
Mass
Merchandisers
Price, volume and consistency are the keywords here. These folk are
primarily interested in what sells well.
Discount
Stores
Again, price, volume and consistency play key roles. Close-outs or
discontinued items are of high interest, but be careful here if you
plan on having a unique product, as selling it in discount stores may
lower the perceived value of your product in the market.
Catalog/Web
Retailers
Volumes can be good, and you must be consistent. You will usually have
to package your items individually for re-shipping.
Wholesalers
Their marketing costs are usually high, which means they’re
usually in it for the long-term and can be quite stable prospects.
Another benefit is that they know the market well, and how best to
market your products.
Target Market Trends
Some of the recent trends in the craft industry are:
African
influenced designs – but moving
away from ethnic and becoming more contemporary.
With recycling becoming so important worldwide, craft products made from recycled materials are more in demand.
Products which combine design and function are ever more popular.
Pampering and personal care items are finding favor as gifts, as well as with customers buying for themselves.
More Articles
10
Essential Criteria For Choosing Your Target
Market
How
To Research Your Target Market In 5 Easy Steps
If
You Believe Everyone is Your Target Market,
You're Really Targeting No One
3
BIG Reasons You Need To Know Your Target Market