A target market analysis helps you validate your business idea, determine the size and characteristics of your audience and craft the messaging that is most likely to resonate with them. 1. Determine the markets that bring the most value Understanding your target customer helps you define a market of potential buyers who are interested in your product, have purchase intent and can afford it. This reduces the likelihood of wasted marketing dollars spent trying to attract the wrong audience. 2. Evaluate the viability of a new product Your product should solve a problem, ease a pain point or serve a passion. If it does none of these things for your target audience, or if you’ve defined the wrong target audience, then the product won’t be profitable. 3. Discover new exciting markets to test The data can reveal untapped markets or untried marketing strategies that could appeal to your target audience. Listen closely to customer pain points as these are valuable signposts toward unmet needs or areas where your competitors are underperforming — in other words, opportunities for you to swoop in and offer a superior product or customer experience.