Brand Development—Phase II (Audience Analysis)
Phase II of Brand Development involves Audience Analysis, which consists of four stages: target market analysis, market segmentation, ideal customer profiles, and buyer personas. While it may be time-consuming, conducting audience analysis is crucial in developing your company's brand and is worth the effort.
- Author Branding
- May 15, 2024
In Overview of Brand Development, we briefly discussed what it is, how it helps companies differentiate themselves from the competition and use that to their advantage, and the five phases to work through.
In Brand Development—Phase I (Team Development & Business Analysis), we divided the process into four steps: (1) creating a brand development team, (2) preparing the company and brand statements and brand promise, (3) researching the competitive landscape, and (4) completing a business environmental analysis. The details in Phase I are the foundation for building your marketing efforts, supplying stability and structure for your brand’s growth.
In Brand Development—Phase II, we evaluate the intricate audience analysis process, which includes four steps: (1) target market analysis, (2) market segmentation, (3) ideal customer profiles, and (4) buyer personas. Each step is further subdivided into smaller sections to help manage the material you expect to find.
Target Market Analysis
While the audience analysis process may appear straightforward, a comprehensive examination is time-consuming. As someone who has not previously undertaken a complete market analysis (as I have openly acknowledged), I found it necessary to fully immerse myself in the process to gain a deeper understanding of what to look for and help guide you through each step.
Working under the presumption of being a brand-new company, I approached the project as someone with a vague idea of what to look for but no concrete path to follow. By completing thorough research and taking many notes on each part of the analysis, I began to appreciate the complexity I faced when I first started.
Having dedicated over 157 hours to this Phase, I have gained far more insights than I initially expected. The depth of research a company undertakes can be overwhelming, often feeling like a futile search in the dark. However, as the puzzle pieces start to fit together, a more precise and comprehensive picture appears, reinforcing the notion that the effort is worthwhile, even in the face of occasional frustration.
The Secret Weapon for Preliminary Research
Note: As said above, I approached this analysis as someone new to the industry, with little idea of where to start searching. Using as many tools as possible, using newer technologies such as artificial intelligence (AI) was imperative. While AI does appear to make certain aspects of the research “easier,” the most significant concern I faced was ensuring the returns from AI were from reliable sources and easily fact-checked. I also make sure to use the AI as little as possible and sometimes only to triple-check the information received online. If the returned material followed the information found elsewhere, I was on the right track.
The first step before anything was to familiarize myself with the differences between primary and secondary data and their purpose. Using ChatGPT as a starting point, I asked for a list of different online sources to reference for market research. Then, I went to each website to quickly evaluate the source and saved those I felt were dependable and authentic. I then returned to online sources to find questions to use while considering different potential target markets.
The second step I decided to complete was reevaluating Atwood LLC’s current target markets. I asked ChatGPT to take on the role of a new online business owner who is still deciding which target market they should focus on, assuming the business owner plans to focus on virtual assistant and editing services. I told it to create a list of three questions to clarify which industries would be the best, ask me if they look correct, and iterate until we have a list of three to five possibilities.
The responses from ChatGPT included asking about my passions and interests that could potentially align with target industries, what prior experience in specific sectors could give me a competitive advantage, and if there are any potential or rapidly growing industries I believe could benefit from the services I plan to offer.
After four rounds of questions and answers, I finally settled on four primary target markets. I then used ChatGPT to recommend potential audiences within those markets to help narrow the company’s focus.
Target Market Analysis Worksheet
Just as I created a worksheet for the Brand Development & Business Analysis to follow and help organize the material found, I made a new one for the target market analysis. However, before we begin, let us understand the difference between the target market and the target audience.
The target market is the general industry or industries you believe can profit from your company’s products and services. The target audience is your target market’s specific subsection (or subgroup) you plan to address in your marketing messages. Atwood LLC’s goal for this set of Phase II was to narrow down the more extensive list of target audiences to a manageable and profitable sub-section of the market.
With the help of online resources from trusted organizations, the final worksheet has six sections to fill out before moving to the second step of Phase II. These sections include (1) defining your research purpose, (2) planning your data collection procedures, (3) choosing the data collection approach, (4) gathering the data, (5) analyzing the data, and (6) creating an actionable report of the findings.
Define Your Research Purpose
The entire point of the research is to find answers and help guide your company’s forward progression. You understand where you want the company to go in the future but might still need to decide which path you should take. Here is where you begin narrowing your focus and learning about the industries you find exciting or prefer.
To answer the queries in this section (which industries interest you most, and what questions do you need answers to?), I used the material found during the preliminary research with ChatGPT to list the four industries I felt needed extensive research before making a final decision for the company. Then, I curated a list of four separate questions for each target industry that I could use as sources of inspiration for later research.
Plan Your Data Collection Procedures
The worst thing a company can do when planning its research is not to plan. Companies that try to research something without a guiding light and specific targets may fall into a rabbit hole, which can produce overstimulation due to information overload. The point of planning your research is to focus on the most critical information without becoming overwhelmed or frustrated.
The worksheet helps with the planning process by asking four questions:
- Which data do you need? For each target market, I listed at least four areas of interest, including (but not limited to) market size and growth, demand trends, industry regulations, and key players.
- How much data do you need? After completing preliminary research on regulatory compliance in each target market, I figured out which industries might require more research than others (the heavier the regulation, the more research needed).
- Where will you find the data? Using the list of resources given by the ChatGPT research, I noted government databases, industry journals, and associations for most research.
- What is the desired timeline for finding the data? Knowing I was starting with a complex project, I gave myself up to two weeks (or ten business days) to research the required information. (Of the 157 hours spent on the project, I stayed within the timeline by 6.7 days.)
Choose Your Data Collection Approach
More established companies typically use a wide range of data collection methods. Smaller companies, freelancers, and emerging businesses may realize that lacking primary research in certain aspects—such as customer reviews or testimonials—sometimes requires a first inquiry into government and industry resources until other primary sources become available.
The worksheet instructs the researcher to (1) choose how to obtain the data and (2) decide if they will collect the data directly from the source or want to rely on third-party sources. Due to the lack of specific primary sources, I used a mixed-method approach. I also decided that most of the collected data would come from reputable third-party sources (at least for now).
Gather the Data
Now begins the tricky part: finding the data you need for your project. There are three sections to the worksheet: (1) listing the project goals and what you want to achieve by completing the research; (2) creating a Project Scope Statement that describes the purpose, restrictions, and schedule for completing the research; and (3) gathering the required data from the myriad of sources available.
Gathering data from various sources was challenging but worthwhile to keep organized. In addition to the written notes collected, I created spreadsheets to help organize information such as statistics, financial material, and even population data. I also used material found in Phase I (Business Environmental Analysis) to help fill in specific details.
Analyze the Data
Once you have the data you need, you must decide how to interpret (or translate) the information you found. The first part of this process is to combine all the information into raw data sets and then remove duplicates. The second step is to use data analysis techniques and tools (such as regression, factor, and cohort analyses) to help you find trends, correlations, anomalies, and other vital details.
The worksheet’s first question asks what notes you took during the market research. For Atwood LLC’s purposes, I include those created for internal and external purposes. Based on the information found and interpreted, I decided which target audience(s) I felt were the best to pursue and noted them in response to the second question on the sheet.
Create An Actionable Report of Your Findings
The final Phase of the target market analysis asks for an Actionable Report, a fifteen to twenty-page report describing the steps taken during this analysis. Divided into sections, such details in the report include goals, the executive summary, the market research process, the list of tools used, the findings and discussions (or Atwood LLC’s final decisions), internal recommendations, and the appendix (which includes other details not directly relevant but still important).
Market Segmentation
The second step of audience analysis is to use the data gathered in the first step of Phase II to break down your target market into specific behavioral and psychographic criteria. This process is known as market segmentation and provides the foundation for every future marketing decision your organization makes. To help with this endeavor, you can create (or download) the Market Segmentation Worksheet to help organize the information into easy-to-understand target audiences.
Market Segmentation Worksheet
I was unprepared for the level (and depth) of learning I would need to complete the audience analysis. Unfortunately, I assumed that the target market analysis was the most challenging part of Phase II, and now, I know just how wrong I was. Market segmentation can make or break a company’s market performance. Therefore, it now makes sense why the process is so complex.
The Market Segmentation Worksheet below is a template I created from over ten online sources. Each segmentation step has a list of one to four questions that require answering and often have sub-steps within sub-steps. There are eight steps to the market segmentation worksheet, including (1) knowing what you want to achieve; (2) defining your market; (3) analyzing existing customers; (4) comparing and finding gaps, groups, and opportunities; (5) defining and naming segments; (6) identifying how to target each segment; (7) researching segments separately; and (8) testing and optimization.
Know What You Want to Achieve
Like the first step of target market analysis, you want to explain what you hope to gain by segmenting your market. I included my reasons for completing a full analysis (as described in the Actionable Report) and how I expect it to help the company.
Define Your Market
The worksheet has four sub-sections for the second step, each of which has the potential to break down further. These sections include:
- Name your target markets and audiences you plan to focus on. Atwood LLC has two target markets, each divided into three to five audiences.
- Detail the size of each market and whether your firm’s services are in demand. I created a list showing each target audience’s market size and their demand for the types of services I plan to offer.
- Find your firm’s market position compared to your competitors. I completed a competitive analysis, which helped me name and classify my competitors, decide their market position, conduct extensive research on key competitors, learn their marketing strategies, and complete a Competitive SWOT Analysis.
- Benchmark against industry standards. This section includes information on current statistics, the most in-demand services for both sides of the company, and best practices. I also included a list of relevant online databases, publications of industry associations, newsletters, and journals.
Analyze Existing Customers
The third step is to complete a structured audience analysis, which focuses on diverse kinds of analyses. Your company’s decision on which analysis to use will vary depending on needs, expectations, size, and time. Be prepared to complete extra spreadsheets or worksheets based on your chosen analyses.
While engaging with this part of the process, I used the following analyses:
Behavioral Segmentation
The types of information searched for include purchasing behavior, benefits, buyer journey stage, usage, timing, customer loyalty, and user status for each target audience.
Brand Loyalty Segmentation
Dividing the customers based on preferences, tastes, type, and even buying frequency.
Competitor Audience Overlap Segmentation
Learn where overlaps exist with competitors and find the gap or gaps you can fill.
Customer Journey Stage Segmentation
Use one of four types of journey maps to trace where your customers engage with the company. Doing so requires understanding (a) the buyer and customer’s journeys, (b) mapping out the different customer journeys a buyer could take, and (c) creating an Ideal Customer Profile and Buyer Persona for each target audience.
Demographic Segmentation
Age, gender, income, education, jobs by sector, and other relevant statistics within each target audience.
Geographic Segmentation
Relevant statistics and information for the geographic area your firm plans to target, including cities, states, national, and even international details.
Interest Segmentation
Understand the most popular material types with different target audiences and create content that reflects solutions to their pain points and other questions.
Psychographic Segmentation
Understanding the psychological aspects of a target audience and using that information to help create content and other relevant offers.
Purchase Intention Segmentation
Used to help discover the factors that induce customers to make (or not) a purchasing decision.
Situational Segmentation
Learn the real-time needs and scenarios that push customers toward buying a product or service.
Social Media Segmentation
Understanding where the customers are on social media, how often they use it, and what content they regularly consume.
Technographic Segmentation
Learn the standard technologies used within a target audience and understand how emerging trends could change the technological landscape.
Compare, Find Gaps & Opportunities
The fourth step for Phase II requires using the information gathered above to find where your firm can differentiate itself from your competitors. This is especially true if you complete the customer journey stages for each audience, which means you gain access to diverse ways to interact, attract attention, and supply solutions to your customers.
The second half of this section finishes with details of who your company plans to target within each audience. Such information here might include age range(s), their geographical locations, their gender, and other relevant details.
Define & Name Segments
Here, your company can name and explain the details of each segment it wishes to focus on (a handy tool when more than one person in the company is targeting customers).
To help with this, follow guidelines on creating a market segmentation strategy, which helps clarify your firm’s goals and the KPIs and metrics to help track each goal. Atwood LLC decided to go one step further than in the past and input each goal, KPI, and metric into ClickUp for easy reference and use.
Find How to Target Each Segment
The sixth step requires in-depth research on how to reach and connect with your target audiences. Typically, this requires creating an implementation plan for market segmentation, which will help the company strategically map out the timeline for when each platform (social media, mobile app, and others) goes into effect and the process to follow to do so.
Research Segments Separately
There are three steps to the seventh part of Phase II in the worksheet:
- Complete a Conversion Analysis. Companies that have yet to complete the Customer Journey Stages described in the third step should do so now. The conversion analysis measures a customer’s progress in the marketing and sales funnels. By learning where customers fall out of the funnel, you can change their trajectory by creating relevant content that guides them through the pre- and post-purchase stages of the buyer’s journey.
- Evaluate Engagement Metrics. The engagement metrics a company uses for each platform (website, social media, mobile, and others) will vary based on your firm’s goals. If you complete the conversion analysis in step three, you can note which KPIs and metrics you plan to track and move to the next stage—otherwise, now is the time to complete this step.
- Conduct a Competitive Analysis. You should have already completed your competitor analysis during the second step. The information you found there can help you strategize the best way forward for your company.
Now that the first two steps for Phase II are complete, we can move on to creating your ideal customer profiles and buyer personas.
Ideal Customer Profile
An ideal customer profile is a sales tactic that requires creating a fictitious customer (or character) that embodies what makes the perfect (and not-so-perfect) customer for your company. Using each ideal customer profile, you can create personalized marketing materials that catch the interest of prospective customers and weed out those that are not as good a fit as you would like (see buyer persona for more details).
The most essential idea to remember while generating your ideal customer profile is to create a separate profile for each target audience. By doing so, you can ensure that your specific marketing messages reach your target audience and that they follow one of the many different customer journey paths you traced earlier. Once you finish your ideal profiles, you may need to return to the customer journey and update the expected touchpoints to ensure you capture conversions.
Atwood LLC has eight specific target audiences. Although I knew this section was approaching, I decided to start the process during the third step (which requires occasionally returning to the customer journey path for updates and clarifications as necessary). I am not, however, trying to draft each ideal customer profile for all eight right now—my goal was to create the profile for the blog post and complete the remaining profiles over a set amount of time.
An ideal customer profile has three sections: (1) personal information, (2) client business information, and (3) client clarification questions. Each section has anywhere from twenty to thirty questions.
- Personal Information. The questions found in this section provide your customer’s background. If you are a writer, think of your ideal customer profile as a character in your novel with a specific goal they want to achieve. A character must evolve, but to do so, you must understand where they began. Creating a background for this character lets you visualize who they are, what they want from life, and how they plan to get there. Your goal is to bring your ideal customer to life on the page and visualize how they will move from a prospective client to a paying customer.
- Client Business Information. Answering the questions here enables you to understand what the customer does for a living, their pain points, the goals they want to achieve, and other information such as the technology they use daily and communication preferences.
- Client Clarification Questions. This section of questions requires a deeper understanding of the ideal customer. It examines how the prospect found your company, what they look for during the consideration process, their buying timeline, the sales process expectations, and even details on ensuring they become a repeat buyer.
Buyer Personas
The buyer persona is the second half of your company’s ideal client profile. Using the data gathered during market research enables you to create personalized content and messaging for your target audience at each customer journey stage.
Atwood LLC’s Buyer Persona Questionnaire has six sections:
- Ideal Customer Information. Although the same information appears on the ideal customer profile, I use this section to elaborate upon the ideal customer’s background and perspective.
- Client Company Details. These questions are about how the candidates got into their specific industry, their relationship with management and other employees, the flow of their typical day, and the types of responsibilities they manage.
- Educational Details. Discuss the details of the ideal customer’s educational background and goals for the future.
- Purchasing Questions. Supply more details about what the ideal customer does. In other words, provide more information about what the ideal customer does while making a purchase, the evaluation process for making a purchase, how they come across your company, and the alternatives from which they can choose.
- Pain Points. Expand on what pain points they are experiencing and how your services help them solve their problems.
- Technical Details. Discuss which applications and software the ideal customer uses, their thoughts on emerging or innovative technology, and how they research their options while pursuing a solution to their pain points.
Wrapping Up
The process of methodically working through the second step of brand development can seem impossible (especially when working alone). However, it is manageable if you use worksheets to help organize your information.
First, complete a target market analysis, which helps you decide which target audiences to focus on. Second, segment your market further to understand where your audience is, how to find them, how to respond to their concerns, and how to ensure their buying process is still conflict-free from beginning to end. Third, create an ideal customer profile for each target audience, which supplies much-needed information on who you are speaking to and how you can help them. And finally, create a buyer persona for each ideal customer and use that information to create marketing messages, online content, and solutions that appeal to your audiences.
Brand Development—Phase III (Brand Positioning) will arrive in September 2024. In the meantime, keep checking back for more details and examples of the types of analyses discussed.
