Are you having a hard time selling your products and services?

No matter how great your products and services are, or no matter how confident you are about them, if they are aimed at the wrong market, they just won’t sell. 

On the other hand, even an average product can thrive IMMENSELY if it is introduced in the right market with a clear message that connects it with the customers. 

In fact, according to the studies made by Harvard Business Review, companies that focus on the right customer segment grow two to three times faster than those who try to target almost everyone. 

The secret here is that the narrower your focus, the stronger your brand and the higher the sales are.

Here are the reasons why choosing the right market for your products and services is important.

 

Benefits of choosing the right market

1. You stop wasting valuable time and resources

Remember, choosing the right market is the foundation of every successful business. It also determines how fast you grow, how much you can change and adapt, as well as how loyal your customers can become. 

Moreover, once you know who your ideal customers are, you stop wasting valuable time and resources. Your marketing becomes clearer and your message hits harder, which will increase your conversions. 

 

2. You spend less and you earn more

Since you are focusing on a narrower audience, you make every penny worth it. You avoid spreading your budget too thin. You focus only on people who are most likely to buy your product. This can can in turn, boost your return-on-investment (ROI). Moreover, you are not afraid to spend every penny since you know it is targeting the right people who are into your product. 

 

3. You create products that actually sell and provide solutions to your customers’ problems

Another amazing thing about finding your target market is creating a product that actually makes a difference. Understanding your market helps you design offers that solve real customer problems. This can lead to better customer satisfaction, more referrals, and great customer feedback, among others. It also helps you gain more understanding on what your audience really wants, increasing your loyalty among your customers. Providing solutions to people’s problems also gives your company a sense of purpose, helping you last longer in the industry. 

 

4. You build a stronger brand identity

Since your product is well-positioned in the right market, people will start recognising your brand for something specific. So when they need something that is related to your product offering, they immediately remember you. You become their number one go-to provider for that product, and they often recommend you to other people. Clear market positioning builds reputation and trust. 

 

5. You can easily beat the competition

If you are in a smaller and well-defined market, you can easily stand out more than competing in a crowded general market. You can easily establish your brand as an expert in that space which helps you attract higher-value clients. 

 

6. You can adapt faster to changes

Since you know your audience better, you are more aware to their needs and motivations. Thus, if there are changes or shifts in the market, you can easily adapt and adjust your offerings to stay ahead. Sometimes, products that fail to adapt faster on market changes lose to competition. 

 

7. You grow more sustainably

Since you know your market better, you are not just relying on one-time buyers. You attract long-term clients who come back, willing to spend more, and even promote your products and services to others. You became sustainable and last in the market for a long time. 

Now that we understand why choosing the right market for your product is important, we need to know how to find the right audience. How to find the end of the rainbow when it comes to marketing to the right people, that sweet spot that makes everything right for your business. 

Here are some tips that can get you started. 

 

How to find the right target market

Step 1 – Know who you are really helping

Ask yourself, who is your product helping? Who needs your product the most? And why do they need it? It is easy to answer demographics such as age, location, or income. You need to go deeper to understanding your target market. 

Spend time in answering these valuable questions:

• What problems are your target market trying to solve?
• What frustrates your target market about their current solution?
• What results do your target market want to see?

For example, your target market is small to medium accounting firms who struggle with heavy workloads and staffing shortages. They feel frustrated with unreliable or untrained offshore teams. With this, you solve their problem by offering skilled, consistent, and efficient support to help them scale their practice.

 

Step 2 – Study your market’s size and potential

Once you know how to solve your target market’s problem, the next step is to check if your target market is big enough to grow with you. You can use the TAM–SAM–SOM method.

Here’s a break down of what it means:

• TAM – Total Addressable Market: everyone who could use your product.
• SAM – Serviceable Market: people you can actually reach.
• SOM – Serviceable Obtainable Market: the portion you can realistically win soon.

Here’s an example:

TAM (Total Addressable Market):

Globally, there are over 1.3 million accounting firms seeking ways to reduce costs, improve efficiency, and scale their client services through outsourcing solutions.

SAM (Serviceable Available Market):

In Australia, New Zealand, the UK, and the US alone, around 150,000 small to medium-sized accounting firms actively explore offshore staffing or virtual accounting support to manage bookkeeping, tax preparation, and administrative tasks more efficiently.

SOM (Serviceable Obtainable Market):

By focusing on English-speaking accounting firms with 5–50 employees that require ongoing back-office and accounting support, your company can realistically capture 1–3% of the SAM within the next few years through strategic marketing, partnerships, and proven client retention.

 

Step 3 – Check if they are ready to buy

It is not enough that you have the solution to their problems and that you know who to sell to. You also need to know if they are ready to buy. It is not always about size, but it is also about timing. So to know if it is the right time for your target market, ask yourself these helpful questions:

• Is there a strong pain or need right now?
• Are they actively looking for solutions?
• Can they afford what you’re offering?

 

Step 4 – Create a clear value proposition

You need to create a clear messaging that would make your audience consider you. Make your message clear and simple. If you don’t know how to do that, you can try this format:

“For [your target audience] who need [problem solved], our [product/service] helps them [main benefit] by [how you do it differently].”

For example:

For Australian businesses that need reliable back-office support, SOS Global provides dedicated outsourcing teams that help you save time and reduce costs, without the stress of managing offshore staff.

Keep it short, clear, and focused on the benefit, not the feature.

 

Step 5 – Position your product to stand out

Positioning is about how you want people to see your brand as compared to others. You can use “differentiate method”, which means you need to show what makes you better or unique as compared to others. You can also use the “new angle method”. This means you change how people view their problem and how you can be a part of solving it. 

You can try both and see which one is more effective in positioning your product to better send your message to your right target market. 

Remember that brands with clear and unique positioning are 60% more likely to be remembered when customers are ready to buy. 

 

Step 6 – Test and refine

Many businesses skip this important step when they feel like they have figured out everything. And they get frustrated when their plan does not materialise. Businesses are created differently. So you need to test and see what works with your business. Once you know what works, refine the process and repeat. 

Don’t just guess. Test your ideas. Testing can mean running small ads targeting different customer groups or creating two versions of your landing page with different messages. It can also mean asking existing clients why they chose you. Use the data you gathered to find out which message connects best.

 

Step 7 – Be consistent everywhere

Once you find what works, repeat it across your marketing, such as on your website, social media, email campaigns, sales materials, among others. You need to be consistent. Being consistent can help your audience remember you better. Consistency builds trust and recognition. People should be able to tell it’s your brand, even if they only see your logo or tagline.

Choosing the right market and positioning your product is not a one-time task. It’s an ongoing process of learning, testing, and improving.

Start small, listen to your customers, and adjust as you grow.

When you find the right audience and the right message, everything else – sales, reputation, and growth, follows naturally.

If you’re unsure where to start, book a free consultation with us. We can help you identify your ideal market and build a strategy that fits your business goals.