Finding the Target

Finding the size, location, attitudes, actions of the the customer.

Example

Usage of freely available Data to narrow your target.

You were contemplating starting a clothing store for senior adult men, 60 years and over, in Chicago IL, how could you estimate your potential Market?

A good starting-point would be the United States Census.

 

In this simplified example we can determine that roughly 500000 potential customers reside in the Chicago area. This is an example of both Geographic & Age targeting.

Let’s take a look at how our target market of 500,000 spends their money. One reason to segment demographically by age is purchase patterns vary greatly.

The U.S Bureau of Labor Statistics can help. Like the Census, the Bureau of Labor Statistics data can be a little bit dated. It does require some interpretations and it’s not very user-friendly but can give some great insights into your target market and a way to gain insight to making a Persona (discussed later in chapter). 

https://www.bls.gov/opub/btn/volume-4/consumer-expenditures-vary-by-age.htm

Households in the Chicago-Naperville-Elgin, IL-IN-WI metropolitan area spent an average of $63,726 per year in 2017–18, the U.S. Bureau of Labor Statistics Households in the Chicago-Naperville-Elgin, IL-IN-WI metropolitan area spent an average of $63,726 per year in 2017–18, the U.S. Bureau of Labor Statistics. Of which 3.2% or $2039.

https://www.bls.gov/regions/midwest/news-release/consumerexpenditures_chicago.htm

Data used in the chart for clothing costs:
from 55-64 years — $1563
from 65-74 $1222
75 and over $832

https://www.bls.gov/opub/btn/volume-4/consumer-expenditures-vary-by-age.htm