Segmentation and definition of the target market

Differentiate between demographic (facts) and psychographic (motivations) data.

Before embarking on any marketing effort, it is imperative to establish precisely who we are targeting, a task that is often more complex than it appears.

To build a robust customer profile, we must distinguish between two fundamental types of data.

On the one hand, there are demographics, which are measurable and objective facts such as age, income level, education level, geographic location or marital status.

On the other hand, and of equal or greater importance, are psychographic data.

These are subjective and difficult to quantify elements that describe the consumer's psyche: their fears, hopes, aspirations, deep motivations and affinities.

While demographics tell us "who" the customer is, psychographics reveal "why" they act a certain way, the latter being much more nuanced as it varies intensely from individual to individual.

The importance of challenging initial assumptions about the customer

It is common for entrepreneurs to start a project based on erroneous assumptions about who their end consumer will be.

For example, let's imagine someone who wants to open a board game café.

Initially, he might assume that his target audience is "hardcore gamers" or "geeks."

However, after observing the actual behavior or environment, you might discover that your primary customer is not the lone gamer, but groups of friends looking for a social activity, or perhaps parents looking for analog entertainment for their children.

Holding on to the initial idea without validating it can lead to failure; it is vital to correct these assumptions early on through direct conversation with real people and observation in the field to adjust the business model to the market reality.

Identifying specific niches

Defining the target market requires dissecting broad groups to find the most profitable and loyal segment.

Following the example of the coffee shop, while almost everyone may like coffee or games, not everyone can be served equally.

Location and hours are determining filters; a location in a financial district will attract executives looking for a quick (adult) break, while one in a residential suburb will attract families on weekends.

The goal is to identify which specific demographic group-for example, college students going in large groups versus couples on a date-is the one that will freq