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Define Target Group: Well Planned-Out Strategies for Your Success|100W

May 8, 2020 8:00:00 AM / by Stefanie Schweizer


Time to time, companies want to successfully touch the entire spectrum of potential customers with their product or service. However, without the concrete definition of target groups, the development of offers and complex marketing strategies may be in vain.

Defining a target group certainly has its advantages, which is why entrepreneurs should pay keen attention to the topic and devote sufficient power to the employees. Why target group definition is so groundbreaking, how you actively approach the whole thing and how the innovative use of language can give your segmentation the finishing touches, you will find out in the following article.


Define target group - what does that mean exactly?

A target group usually consists of an unknown, possible number of people. This combines the personal interest in the product or service of a company. This means that this group of people is willing to spend money. They are therefore potential customers who want to reach companies through targeted advertising and marketing strategies, as well as to win them over for the purchase. In other words, companies can effectively find an answer to the question in the target group: Who will definitely buy or use your product/service?

Target groups share similar characteristics, wants and goals. In the best case the target group of a company is homogeneous - then companies can proceed in a particularly targeted manner. Because the more homogeneous a group of people is, the higher the probability that all people assigned to the target group really feel addressed by the company's measures and solutions. This enables companies to take care of advertising, customer communication and the approach to new customers in an optimal way and also to reach out to a maximum number of people.


Defining target groups leads to success

Maybe you can relate to this kind situation: You want to treat yourself to a delicious meal with your partner and are looking for a delivery service on the Internet. This service offers, for example, Italian, Indian, Turkish, German and Asian dishes. As a customer, the question of the quality of the food quickly arises. After all, anyone who regularly cooks in person knows what essential skills lie between brilliant antipasti and a delicious Nasi Goreng.

Without the initiative of defining target groups, you will therefore put your company in a similarly challenging situation: trying to get in touch with a maximum number of customers with uncoordinated ideas does not fully exhaust its potential as a solution. On the contrary: Usually, this communication is followed by only a slight development. In other words: Only a few people feel addressed.

By not acting blindly and creating clarity in terms of target groups, companies can therefore more easily develop a successful strategy and strengthen it. This can be particularly useful and profitable when starting up an independent business. Companies that are still in the start-up phase benefit from this step - namely in the successful and sustainable preparation of a business plan.

But the development of a new product also requires the definition of target groups in order to be successful. In order to be able to better accompany the potential as well as the size of the market, companies should have a clear vision on who is interested in their offer.


Define target group with the help of market segmentation

The so-called market segmentation forms the secure basis for innovative and creative marketing with maximum benefits. Usually an efficient segmentation according to products, product features or even customers is possible. Many companies opt for the latter solution and align their strategy accordingly.

The aim of this strategy is always to create a unique profile of your target group. It is important to note that the selected group of potential customers should not be too large, but also not too small. So don't plan too generally, but also not too specifically, otherwise your business performance in terms of communication may not be fruitful. This must be avoided. Companies should therefore work on developing and optimizing target groups always with a view to their product or service.


Step 1: Define target group according to B2C and B2B

The first step for an accurate and successful narrowing down of your target group is to know the active difference between private and business customers. This is essential for the further procedure, as both groups have different needs and preferences. Especially with private customers, a creative solution is needed to address them effectively, as this target group is usually extremely heterogeneous.

Whether private or business customers: Take a concentrated approach to the detailed planning of measures for both groups. Because it is not always the people who decide on a product that are also the ones who buy it. An example: A man buys his son an Kinder-egg at the supermarket checkout. Although the product itself is made according to the child's needs (play, fun and chocolate), the decision to buy is made by the father. He is therefore the actual customer of the company.

But this special development can also take place in a business context. For example, when the boss of a company plans money for a new coffee machine, the team's Feelgoodmanager chooses a hip model and actually orders it. In this case the management is part of the obvious target group, just like the father in the supermarket, by the way. The feelgood manager as well as the junior staff belong to the effective target group because they accompany the actual purchase and influence it personally.


Step 2: Define target group through exchange

In order to be able to narrow down the individual target group, companies should focus on their needs and wants. But how can this be done? A particularly good way to get in touch with potential customers is to listen with concentration. What is the customer looking for? What benefit should the product have for him? What does the customer like about the product? What does he want from it?

In addition to the potential customers themselves, you can also plan successfully with the respective industry and its predominant topics. Which trends are currently being discussed with commitment? In which direction could the industry's product range move in the future? For example, join relevant groups in social media and observe industry-specific channels to find out about opportunities and developments.

Moreover, some companies are in the favorable position to be able to include an already loyal customer base in their planning with confidence. This is possible, for example, with the help of active surveys. In this way, open requirements, benefits and subjective perceptions of existing customers can be researched and used efficiently. The results support the planning of the further procedure in order to define the target group.


Step 3: Develop individual persona

Another creative way to easily define the target group of a product or service is the creation of so-called personas. These are socially fictional characters, each of which depicts a group of people with certain characteristics. This makes the target group, which at this point may still seem a bit nebulous, tangible and gives it a human face, so to speak.

There are different criteria by which individual persona can be easily determined:

- These would be psychological characteristics such as lifestyle and the quality, routines and opinions of potential customers,

- socio-economic characteristics such as professional success and educational levels,

- demographic characteristics such as gender identity and family

- and on the other hand the individual buying behaviour in terms of price sensitivity, buying range and media usage.

By developing Persona, which takes these individual criteria into account and provides them with answers, companies can define their target group very precisely. This allows the development of a targeted strategy for the acquisition of new customers.

Using the language to define target groups

The development of different personas for your company takes time - how good it is that we can help you here with 100W. Because with the help of our innovative technology, creating individual persona profiles is very simple. Or you can fall back on one of our seven existing profiles.

An essential part of a good strategy for target group definition is also the choice of vocabulary. After all, person-to-person communication can be decisive in addressing potential customers in a profitable way. If you speak too generally, your time and effort may get wasted bringing zero result.

Understanding and speaking the language of your customers successfully is very simple. The reason behind it is called social mimicry and is based on psychological principles. Many people know the effect from everyday psychology that the imitation of facial expressions and gestures by the other person creates a certain intimacy. And language also has this possibility.

100W has quickly recognized this. With us, you have a competent partner at your side for an authentic as well as optimized customer approach within your target group. Because with you we take care of communicating your target group in a right manner. Use our cloud-based Psychological AI to develop linguistically perfect surveys, personal customized emails or creative product texts - and thus lead your company to success.


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Tags: Marketing, B2B Content Marketing, Textanalyse, marketing strategy, Defining target group, targetcustomer

Written By Stefanie Schweizer

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