Target Market: How to Find and Reach Your Ideal Customers

To accurately gauge the potential size of your market, it is crucial to narrow your focus and obtain a clear and specific understanding. Employing a series of industry and market segment funnels allows you to identify a target market that is both appealing to investors and practical for you to effectively serve.

This course introduces the concept of the market funnel framework, a three-step approach to defining your target audience and assessing market segments in a manner that is useful to investors and applicable to your financial plan.

Avoid falling into the trap of claiming that you only need a minuscule portion of the market to achieve millionaire status as an entrepreneur. Not only will this statement lead to investors rejecting your proposals, but it will also damage your credibility. This overview on market sizing demonstrates the significance of identifying a core market segment that you can realistically penetrate.

The Market Funnel Framework

The Market Funnel Framework is a strategic approach to pinpointing your primary market. Your industry is characterized by various categories and their corresponding segments. Your market is composed of the individuals, known as customers, who make up this industry. This framework will guide you through a step-by-step process of refining your industry into smaller sub-segments, ultimately helping you identify a distinct and well-defined target customer that can be effectively measured.

Refine Your Market Definition

The key to determining your market lies in finding the right balance between a broad or narrow scope. Your market definition should be expansive enough to attract potential investors.

Are you acquainted with the concepts of TAM, SAM, and SOM? These are valuable tools for defining and evaluating the size of your market. Even if you are already familiar with them, I offer useful guidelines on how to utilize them effectively.

I'll provide detailed examples of how a skincare company and a microbrewing company successfully defined their respective markets.

How to Size Your Market

Understanding the importance of assessing your market size is crucial. In this guide, I will provide insights into what investors seek and how to effectively present the valuable market data.

We'll explore the approach taken by the skincare company as an example to determine the size of their market.

Workshop

It's time to start writing, either with a pen and paper or by typing on a keyboard. Explore the contents of the worksheet designed to help you define and determine the size of your market for your business plan. The key to achieving success lies in dedicating enough time to truly comprehend your business and being ready to manage it. Make use of this workshop and worksheet to accomplish just that.

Course Guide

I suggest downloading this practical course guide to assist you in navigating through the course and to serve as a valuable reference for the future.

1. Entrepreneurs
2. Start-Up Founders

1. I'm not graduate from economic bachelor and English is not my mother tongue. But this course and how Mr. Ken explained the content is really easy to understand for beginner like me. Thanks to Mr. Ken for answered all of my question with a fast and easy understandable answer! ~ Diantini S
2. Perfect timing and the insights till now are those that I was exactly looking for.... Excited to learn more ~ Yogen P
3. Such an amazing course. You'll be able to understand and create your own business plan and you'll get a lot of valuable advices ~ A Cerimagic
4. Lot’s of info in this course. Ken really takes you from A to Z . Just what I needed for my business to take off. Thanks ~ Hugo M
5. I'm new to the business world and have been looking for courses with practical guidance. This course definitely provides that and so much more ~ S Slawinski
6. So far so good! A lot of challenges I'm facing in my work place Ken has highlighted the root course, which I was not expecting. He is clear, very engaging and breaks down the jargon. He is straight talking, right down to business attitude. I've just completed the first chapter and he's restoring a little faith in me so quite excited to keep learning (I know, I sound like a nerd) ~ Harrie T
7. This course is the right match for me as I know some about business but believe in always improving. I also want to make sure I have a solid foundation for my business so I'm positioned right for the new year, and growth ~ E Jollymore

1. When defining my target market, should I go big or think small?
2. How do I identify a market big enough to support my business?
3. What calculations do investors use to determine whether they’ll see a viable return on investment?
4. What resources can I use to define my industry and its segments?
5. What is my “sweet spot” target market, and how do I size it?
6. How can I assign a dollar amount to my target audience?