How to Conduct a Target Market Analysis 7 Steps
Organizations cannot appeal to the entire general market, as products and services always attract specific customer groups. Therefore, businesses need to investigate their current customer base to determine what demographic of shoppers purchase each product line.
By conducting a target market analysis, companies can better understand what drives their customers to make a purchase and their common pain points. This makes it easier to create impactful promotions and introduce new products.
What is Target Market Analysis?

Firstly, the target market is the audience that contains the primary consumers of a company's products, otherwise known as the customer base. Understanding the target market enables organizations to improve their services, customer support, and shopping experience.
Defining the target market requires organizations to research the average customer's
- Age
- Gender
- Education
- Occupation
- Location
- Demographic
In order to truly understand the customer base, businesses need to determine their values, lifestyle, needs, and preferences by conducting a target market analysis.
A target market analysis assesses a company's product range and clientele to determine where products will find the most success. This enables businesses to finetune their marketing strategies to boost sales, customer reach, and overall performance.
Businesses that invest time into target market analysis are able to
- Identify the most valuable markets
- Develop buyer personas
- Pinpoint market gaps
- Test the longevity of products
- Penetrate new markets
- Improve business strategies and overall decision-making
- Optimize product development
7 Steps for a Target Market Analysis

In target market analysis, businesses need to answer critical questions on products, services, shoppers, and purchasing patterns.
1. Conduct Research
By defining the target demographic, companies can optimize their product development, marketing campaigns, and customer experience to maximize sales.
However, the target market scope can vary based on the business's research capabilities. Some organizations may find that their average customer falls within an age range, while others may narrow it down further to age, gender, and region.
Companies need to at least address the key target market questions.
- Is the target market large enough for the company's inventory?
- Does the business model need changing to gain better appeal?
- Do the products and services need to be tailored to maximize sales?
- How can the marketing team optimize their target campaigns and customer reach?
2. Develop Customer Profiles

Shoppers that consume the same products and services typically have similar qualities that enable companies to use a specific marketing tactic to attract the target audience.
These shared characteristics are combined to form customer profiles, or buyer personas, that make it easier to identify target shoppers. Managers should start by focusing on demographic specifics.
- Age
- Location
- Gender
- Income
- Education
- Family
- Occupation
- Ethnicity
Once these traits are outlined, managers can also add psychographic data.
- Interests
- Values
- Purchasing habits
- Lifestyle
- Product preferences
- Hobbies
- Attitude
This list can go as in-depth as companies like, but the more personal answers will need to be generated through surveys.
3. Create Segments

Customer segments group buyer personas into more specific categories for further analysis. However, this can only be done after thorough profiles are defined. Many new companies are afraid of being too specific during the research stage because they believe it will limit their data yield. However, specific consumer traits are necessary for creating impactful marketing promotions.
Once customer segments are developed, management can dissect the shoppers' preferences, buying patterns, and pain points.
4. Use Analytics Tools
There are several online resources available to businesses that generate market segments based on data inputs. Many of these tools also analyze potential customers and businesses competing for the same target market.
However, businesses often find that these solutions do not have the same detailed findings as manual research yields. Therefore, management should collaborate this data with their own to optimize results.
5. Evaluate Competition
No matter how specific a market segment may be, there will always be businesses competing for the same customers. Therefore, management needs to define their biggest competitors and determine
- What do customers purchase from them?
- What are their pricing strategies?
- What social media sites do they generate the most engagement from?
- According to reviews, what are their strengths and weaknesses?
Analyzing competition allows organizations to finetune their own strategies to take advantage of market gaps.
6. Research the Target Audience

Now it's time to take the research further by using the general customer information to define the target audience. In order to generate specific details, many businesses
- Send Surveys via mail, email, and social media to loyal customers.
- Conduct Interviews in-person with general consumers whom employees feel might fit their target market.
- Hold Focus Groups to generate consensus feedback from shoppers that share characteristics with the customer base.
7. Conduct an Internal Audit
Now that the competition and customer base are defined, companies need to take a holistic look at themselves. By conducting an internal audit, organizations can determine
- Are there enough customers for a new product?
- Will the target audience benefit from the product?
- Is there a current need for the product or service?
- Will the product generate repeat purchases?
- Is it clear what drives the target market?
- Can the target market meet the prices?
- How can the business reach the target market?
These questions narrow down how companies can initiate market penetration and optimize customer reach.

HACCP Critical Control Points- What They are and How to Keep Them in Check

5 tips for Creating a Weekly Employee Schedule Template in Excel

How a Restaurant Chart of Accounts Can Help You Maintain a Healthy Cash Flow

Tips to Help You Decide Which Restaurant Accounting Services to Use

How to Use a Digital Bluetooth Meat Thermometer Correctly

Refrigerated Food Temperatures- A Ready Reckoner For Restaurants

5 Supply Order Mistakes Every Rookie Restaurateur Makes

How to Choose the Best Free Employee Time Tracking Software for Your Business

8 Inventory Management KPIs Every Company Needs To Track

How to Streamline Your Stocks With These Inventory Management Examples


How to Use a Sales Forecast Excel Template to Predict Future Sales

Defining loyalty programs- what they are and how they work

Various Sales Forecasting Models and Which One is Best for Your Business

Tips for Staying Organized While Preparing Your Sales Tax Report

Useful Tips for Creating an Inventory Management Excel Template


How to Use an Inventory Management Template to Keep Track of Your Business Inventory

5 Key Points to Consider When Implementing Business Intelligence Automation

Why You Should Consider a Rotating Shift Schedule for Your Business


How an Employee Communication Platform can Improve Your Workplace


The Benefits of Utilizing Accounting Software in Restaurants


How to Create an Employee Schedule Calendar that Works for Your Business


Defining a Successful Loyalty Program- What Works and What Doesn't


3 Popular Loyalty Program Companies and How They Keep Customers Coming Back


5 Reasons to Switch to an Automated Employee Time Clock Calculator

Business Intelligence Examples- 3 Case Studies of BI's Impact on Restaurants

A Restaurant Closing Checklist- What it is and Why it's Important

Recipe for Success- 10 Inventory Management Strategies That Actually Work

7 Best Mobile Business Intelligence Reporting Tools for Small Restaurants

Why You Need to Swap Excel Employee Schedule Templates for Scheduling Software

Restaurant Food Safety- 10 Ways to Prevent Foodborne Illnesses

Loyalty Program Benefits- Why You Need One and How to Get it Off the Ground

5 Proven Inventory Management Best Practices for Small Restaurant Businesses

5 Best Free Employee Time Clock Apps For A Startup Cafe

3 Reasons Why You Should Invest in a Bluetooth BBQ Thermometer

Employee Work Schedule Template- Your Tool to Building a Productive Workspace

3 Easy Steps to Creating Your Weekly Sales Report Template on Google Sheets

How to Ace Hotel Restaurant Management With the Right POS System

The Ultimate Guide to Buying the Best Bluetooth Food Thermometer

The Truth Behind Food Holding Temperatures- A Guide to Keeping Your Food Safe

5 Ways That Business Intelligence Technologies Help You Drive Strategy

The Seven Principles of HACCP to Help You Build a Safe and Sustainable Kitchen

Restaurant Manager POS- Features, Pricing, Customer Reviews

5 Best Point of Sale System Software For Fine Dining Restaurants

The Complete Guide to Restaurant POS System Cost, Features & FAQs

Best Digital Kitchen Thermometers- 5 Top Models To Choose From

The Ultimate Guide to Food Truck POS- An Overview of the Software You Need

Food Safety and Sanitation Checklist- 10 Steps to Safeguard Your Business

Business Intelligence Platforms- What They Are and How To Use Them

5 Best Workforce Management Software for Restaurant Startups

Weekly Employee Schedule Template- A Guide for Restaurant Owners and Managers

Cold Food Temperatures- How to Make Sure Your Food is Stored Safely

7 Easy Steps to Creating and Implementing an Effective Food Safety Plan

5 Free Employee Scheduling Software for a Startup Bakery

5 Best POS Software to Take Your Restaurant Enterprise to the Next Level

The Ultimate Restaurant Cleaning Checklist (Covers All Ground)

How to Assemble a Business Intelligence Strategy That Actually Works

7 of the Best Employee Time Tracking Software Solutions on the Market

Sales Forecast Definition, Procedure & Results for New Restaurants

Free Employee Schedule Templates- How They Work and Where to Get Them

A Food Serving Temperature Chart for Buffets- Your Ready Reckoner

4 Ways Your Cafe's POS Data Can Help You Tamp Down Costs and Scale up Profits

4 Key Business Intelligence Applications That Can Radically Improve Operations

How to Create a Sales Pipeline Report- A Step-by-Step Guide

Daily Sales Report Template- A Beginners Guide to Creating Your Own Sales Report

5 Ways a Restaurant Can Profit From Business Intelligence and Analytics

7 Best POS for Restaurant Chains- Features, Pricing, Reviews

5 Ways Workforce Management Tools Can Help You Stay on Top of Your Game

5 Things You Never Knew a Restaurant Scheduling App Could Do

5 Best Employee Scheduling Software for Small Restaurant Businesses

7 Free Employee Scheduling Apps For A Productive, Positive Work Culture

6 Ways To Get Ahead Of The Competition With Business Intelligence Services

4 Targets All Good Restaurant Point of Sale Systems Must Meet

Inventory Management Solutions- A Single-Step Process to Boost Your Business

Can Your POS App do This? Key Features it Must Have and What to do if it Doesn't

Top 5 Benefits of Business Intelligence That Can Turn Your Business Around

How to Get the Best Inventory Management Software Free for Your Business!

7 HACCP Steps to Food Safety- Secure Your Restaurant Today

5 Reasons to Swap Your Supply Order Forms for Automated Inventory Management

How to Shop for the Best Business Intelligence Software for Restaurants

Fab 5- The Only List of Restaurant POS Systems You Need to Check Out

5 Reasons Your QSR Needs Business Intelligence and Data Analytics Software
Effective Online Employee Time Clock System- How to Fit it Into Your Workflow

7 Top Restaurant POS Systems of 2022- Features, Pricing, Reviews

5 Fundamental Features All the Best Loyalty Programs Possess

How your business can implement various inventory management techniques

How to Get Business Intelligence Solutions for your Company

HACCP Plan Example- A Step by Step Guide to Food Safety

5 Reasons Why You Need to Upgrade From Your Inventory Management Excel Spreadsheet

7 Points to Consider Before Investing in a Restaurant Point of Sale System

How Can a Food Storage Temperature Chart Minimize Food Wastage?

A Ready Reckoner on Safe Food Temperatures for Cooking and Storing Food


How to Create an Employee Schedule Template for a Small Business

Easy Solutions to 4 Common Supply Chain Process Problems

7 Stellar POS System Software For Start-ups and Small Businesses

How to Pick the Best POS for Food Truck- Get Your Business Moving

How to Choose Your Kitchen Thermometer- Buyer's Guide for Every Budget.

6 Ways a Kiosk Point of Sale System Can Double Restaurant Sales

Employee Time Management- 5 Software Solutions To Improve Productivity

5 Benefits of Implementing HACCP in Your Foodservice Business

5 Best Food Temperature Gauges for the Modern Restaurant Kitchen

How to Choose The Best POS System For Restaurants- A Complete Buyer's Guide

5 Reasons Why You Need a Bluetooth Grill Thermometer in Your Kitchen

Safe Cooking Standards- A Handy Food Cooking Temperature Chart

5 Top Tablet Point of Sale Systems for Small Businesses

5 Trial-Free Employee Time Clock Apps for a Restaurant Startup

5 Reasons Why You Need to Invest in a Bluetooth Smoker Thermometer

Five Reasons to Switch From Your Current Point of Sale Software

5 Customer Loyalty Program Ideas That Will Have the Crowds Coming Back

How Food Safety Labels Can Help Improve Food Management at a Restaurant


Don't Break the Bank- How to Find a Budget-friendly Food Truck POS System

5 Loyalty Program Examples for Restaurants Just Starting Out

How To Create an Employee Weekly Schedule That Keeps Everyone Happy

How to Use a Supply Order Form Template for Your Restaurant

The Big 5- Types of Loyalty Programs and How to Find What's Best for You

Average Labor Cost for Restaurants- 5 Ways to Keep it Under Control













3 Key Elements of Inventory Optimization- Checklist for Businesses






Examining Your POS Service | Why Exceptional Customer Support Matters

How to Choose the Best Inventory Control Software for Small Businesses


Getting Ahead on Human Resource Planning for a Successful Workplace







7 Unique Traits to Look for in Hiring a Retail Manager for Your Store



Flexible Work Arrangements Is the Key to Retaining Restaurant Workers


7 Reasons to Choose a Daily Log App As Your Task Management Software

5 Tips on How to Fill Out a Digital Logbook Like Zip Shift Book

