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The basis for successful marketing – 5 steps to a perfect target group analysis

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The primary goal in marketing is to reach as many relevant users with as few resources as possible. In order to achieve this goal you should determine who are the relevant users by carrying out a target group analysis. For this purpose, the overall market is analyzed and categorized based on various characteristics. In this article you will learn how to carry out a successful target group analysis. Here we go!

Relevance of the target group analysis

How do I reach my potential customers? What content are my potential customers interested in? What are their needs? These and many other questions must be clarified during the target group analysis in order to reach potential customers as efficiently as possible and get them to behave as you want them to. The target group of a product should always be defined before the product is developed. A product without an appropriate target group has a low probability of success. However, audience analysis is not a one-time process. For every new marketing measure, it is important to take a close look at the relevant target group and carry out a target group analysis.

The aim of this analysis is to match the benefits of the product to the needs of the consumers. Benefits must then be communicated to the right consumers with the help of marketing measures. Necessary touchpoints and appropriate content for the target group can be derived from the results of the target group analysis.

The 5 steps to a perfect target group analysis

In order to define target groups, it is necessary to divide consumers into different groups. These groups should each be very homogeneous, i.e., share similar needs and lifestyles. However, the groups should also be as heterogeneous as possible, i.e., different, among themselves. Do you want to know how to achieve such a segmentation? Then continue reading!

1. Demographic definition of the target group

At the beginning of the target group analysis there is a rough definition of the target group based on socio-demographic data. You should think about what kind of consumers you want to address. For this first definition, you can use your product to determine which demographic and socio-economic characteristics apply to the relevant target group. You can use the following parameters as a guide:

  • Age
  • Gender
  • Marital status
  • Education
  • Profession
  • Income
  • Residence
  • Nationality

In  case of a B2B product, parameters such as the size of the company, the industry and financial indicators can be relevant.

Demographic variables can be determined from past buyers or buyers of similar products. There is often a lot of data available on the demographic and socio-economic variables because it is easy to collect. However, narrowing down the target group based on these variables is not sufficient for a target group analysis. Due to demographic change, among other things, psychographic segmentation is becoming more and more important.

2. Psychographic characteristics of the target group

Analyzing the psychographic characteristics of a target group is much more complex. This analysis is one of the core aspects of the target group analysis. Based on the results of this partial analysis, the buying and consumption habits of the target group can be determined.

By determining the psychographic characteristics of your target group, you get the opportunity to empathize with the target group. This will help you to better understand their thoughts and actions. Important psychographic characteristics are, for example, the values ​​and product-specific attitudes of the target group. What is important to the target group? How does the target group feel about certain topics? For example, is sustainability an important topic for this target group? The answers to these and similar questions will help you to determine buying habits.

In order to fully understand the target group, it is important that you ask yourself which behavioral characteristics apply to the target group, which hobbies they have and which lifestyle they follow. It is also interesting to examine which current topics move the target group. What are current trends and developments? This analysis enables you to adapt the content of your marketing mix to the current needs of your target group.

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3. Derivation of purchasing habits

After analyzing the sociodemographic and psychographic characteristics of your target group, you can derive the buying and consumption habits of your target group from these insights. This is an important step in audience analysis, as the marketing funnel should be based on your audience’s habits.

First of all, it is necessary to clarify which buying motives are behind the purchases of the target group. What unmet needs will lead a user within the target audience to make a purchase? It is also important to determine what influences the target group’s purchase decision. Are they influenced by other family members, friends, brand preferences or environmental awareness? The results of step two should be used to clarify all these questions.

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In addition to these questions, it is also necessary to clarify how often, where and when certain products are bought. Which channels does the target group buy the most from? In order to have an overview of the background to the purchasing behavior, it is useful to analyze the household income of the target group. How much money does the target group have? This influences the price sensitivity, i.e., how much can be spent.

4. Review of Analysis Results

After the purchasing behavior of the target group has been analyzed, it is important to verify the results of the target group analysis using data from market research. If this step is beyond the scope of your project, you can complete it over time by collecting and evaluating your buyers’ data.

There are two possible ways to conduct market research:

  • secondary research, which is based on data already collected
  • primary research, which collects and evaluates new data

The choice depends on your budget, time frame and your other factors. It is important to understand that data for secondary research cannot be found for every project. Nevertheless, if data is already available, you can evaluate it according to a qualitative scheme.

If you decide to do primary research, you have the opportunity to generate data that is individually tailored to your product. You can use quantitative surveys, in-depth interviews and group discussions or product tests. The choice of method depends on both the product itself and the scope of your project.

5. Creation of user profiles

Once you have documented the findings of your target group analysis through data, the last and most important step of the target group analysis follows: the creation of specific user profiles, also known as buyer personas. You create these buyer personas based on the data you collected in your previous research. This process humanizes the target audience and makes it even easier for you to empathize with the target audience.

A buyer persona is the profile of a typical representative of a target group. It contains specific information such as the representative’s name, age and occupation. Furthermore, it also includes other central characteristics that set this person apart from others such as consumption habits and the demands placed on a product. Based on this user profile, you create a concrete picture of your ideal customers. You can then use this image to align your communication structure with the target group.

Conclusion on the target group analysis

Audience analysis is a comprehensive process and can consume many resources. Depending on the scope of the project, the scope of the individual steps can be varied and adjusted. Nevertheless, the target group analysis should never be disregarded, as it establishes the basis for every business concept and the corresponding marketing strategy. Nevertheless, it is also necessary to keep the target group up to date by repeating the steps of the target group analysis. This is the only way to achieve long-term success and the opportunity to continuously optimize your product based on the needs of your target group.

Do you need help with your target group analysis? As a full-service online marketing agency, we are happy to support you. Contact us now!

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