What is Target Market?

A target market is a group of consumers that fit the description of who you are trying to sell to. These groups of customers often have one or more commonalities between them. They are the people who are most likely to be interested in your products or services.

These commonalities might be:

• Demographic Targeting

This has common attributes like age, income level, family status, level of disposable income, and marital status.

• Psychographic Segmentation

Common characteristics to consider are values, wants, goals, political leanings, and lifestyle choices.

• Behavioural Patterns

Common areas of consideration are usage frequency, occasion, brand loyalty, and benefits needed.

• Geographic Segmentation

They are all located in the same local area or region.

Other Ways to Classify Your Target Market

For B2B customers, there are other factors to consider when categorizing yout target market. This includes:

• Firmographics

This gives details about the businesses you’re targeting, such as industry, company size, and global or regional spread.

• Buying Style

These are businesses’ buying policies, budgets, or stakeholder involvement

• Business Behaviour

This provides information on their risk tolerance and how much they are willing to spend. It also takes into account the time they typically buy. 

A target market answers the question, “Who are we talking to?”. This helps you know who your content is for.

Click here for more information.

Synonyms

• Market segment
• Audience
• Focus group
• Intended market
• Buyer persona

Types of Target Market

1. Differentiated Marketing

Differentiated marketing is when companies create different marketing strategies and products to sustain different market segments. However, each of these segments receives unique marketing efforts and products.

Example: Let's take a closer look at Procter & Gamble. They employ differentiated marketing strategies to offer a variety of laundry detergents under brands like Gain, Tide, and Downy. Each of these brands targets a particular segment, like Gain for budget-conscious consumers, Tide for premium customers, and Downy for fabric softener enthusiasts.

2. Mass Marketing

Mass marketing can also be called undifferentiated marketing. Because it only creates a single marketing strategy and product for the whole market without considering any certain segments or demographics.

For example, Coca-Cola is mass marketing that only targets a broad audience. It doesn't customize its product or advertising for particular groups. These products and brands are promoted worldwide and are appealing to a wide range of consumers.

3. Niche Marketing

This only concentrates on handling a particular market segment with specific products or services. It focuses on meeting the needs of a particular group.

For instance, a company like Tofurky specialises in offering plant-based, meat-like products for vegans and vegetarians. Their main focus is on this particular market segment, which allows them to have a more loyal customer base within this niche.

4. Micro Marketing

Micromarketing goes beyond personalization. Creating products and marketing messages specifically for each customer is a great way to connect with your audience. It provides highly tailored experiences. 

For example, Amazon’s product gives recommendations and email marketing in the form of micromarketing. It analyses user behaviour and past purchase history. Based on a customer's browsing history and preferences, Amazon can suggest product recommendations and send them in customised email campaigns. 

Steps in Identifying Your Target Market

1. Do Market Research

Knowing "who you are serving?" is the first step. Your marketing and product offering can be modified to better appeal to your target. You need a deep understanding of who they are and what matters to them.

2. Market Segmentation

After you have a better understanding of your target audience, you should divide them into manageable groups. This enables you to send more relevant communications to your target audience. 

3. Identify Your Target Market

Now that you are aware of the clients your company serves, you can decide which market niches to target and which ones to concentrate on first.

Purpose of Knowing Your Target Market

1. Optimise Resources

Determining the target market helps to make sure that marketing expenditures, funds, and resources are well allocated. It allows you to allocate resources to the areas where they will have the greatest influence. By doing this, marketing initiatives are more efficient. Because fewer resources are wasted on audiences who are unlikely to convert.

2. Customise Messages

Having a clear understanding of your target market enables you to produce content that speaks to them. This means speaking directly to their unique requirements, interests, and problems. Customised messaging makes it more likely to capture the audience's interest. and hold it throughout the conversation. 

3. Enhance Product Development

Knowing the preferences and needs of the target market can help with the creation of new products and services. This makes it possible to develop offerings that align with what your customers want. This eventually raises customer happiness and improves sales.

4. Improve Customer Relations

By concentrating on a particular target market, companies can create more meaningful relationships with their customers. Businesses can build long-term client relationships this way. Continuously meeting the demands of your customers helps you earn their trust and loyalty. 

5. Optimise ROI

Returns on investment are higher when marketing activities are targeted. Campaign effectiveness and conversion rates rise when messaging and tactics are customized. Focusing on the interests and habits of the intended audience, improves the return on investment for the company.