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Definition: Target market is the end consumer to which the company wants to sell its end products too. Target marketing involves breaking down the entire market into various segments and planning marketing strategies accordingly for each segment to increase the market share. Description: In simple words, not all products can be consumed by all customers and each product has a different set of consumers who want to purchase the product. In order to attract a particular segment of the market, the company at times, modifies the product accordingly. Creating the target market involves conceptualizing the product, understanding the need of the product in a market, studying its target audience etc. Target marketing would revolve around deploying marketing techniques for a particular segment of markets which could be key to attract new customers, expand business opportunities across geographies and expand distribution network to widen the reach. There are various steps involved in defining the target market. The first is to understand the problem of a customer whom you are addressing. Once it is done, the customers can be identified who are interested in that product. For example, you make water purifiers – so you address the problem of contaminated water quality. We know that farm houses do not have a regular water connection and the water they get from underground is hard. So, there is a wide opportunity for water-purifier makers to enter into this segment and tap the market. The next step is to understand your customer according to the region, income level, etc. Always think about the market, know your competition and the pricing of the product. It will help you in creating a benchmark. There are two important features, which the company should always consider before it decides to capture a separate market segment. First is the attractiveness of the segment, which means that it has less competition, high margin business etc. The second is that it falls in line with the company’s objective, vision etc.
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Why should you determine who your customers are in terms of target market?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.
Who is your target market who are your customers?A target market is a group of potential customers that you identify to sell products or services to. Each group can be divided into smaller segments. Segments are typically grouped by age, location, income and lifestyle.
What does it mean to define your target market?A target market is a specific group of people with shared characteristics that a business markets its products or services to. Companies use target markets to thoroughly understand their potential customers and craft marketing strategies that help them meet their business and marketing objectives.
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