Target market
A target market is a specifically identified group of consumers that advertisers aim to reach with their products or services. Defining a target market involves extensive research to understand which individuals are most likely to purchase a product and the best ways to appeal to them. Target markets can be characterized by various demographic factors, such as age, gender, income, education level, and geographic location, as well as behavioral traits, including lifestyle and purchasing habits. This segmentation allows businesses to focus their marketing efforts on groups that are more likely to respond positively, thereby reducing wasted resources on irrelevant advertising.
For example, a brand might choose to target college-educated women who work outside the home and have young children, rather than a broader demographic. This specificity can enhance connection and engagement with potential customers. Additionally, businesses utilize a marketing mix—commonly known as the "Four Ps" (product, price, promotion, and place)—to effectively reach their target market by aligning their offerings with the needs and preferences of that audience. Recognizing that target markets can evolve over time is crucial for companies as they adapt their strategies to changing consumer dynamics.
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Target market
A target market is a specific selection of consumers to whom an advertiser seeks to market a product or service. Through extensive research, marketers determine which individuals are most likely to purchase a product and how to market the product in a way that appeals to the target audience. Target markets are typically defined by demographic characteristics, such as gender, age, race or ethnicity, income, occupation, and level of education, as well as geographic and behavioral characteristics. These characteristics may be combined to create narrower target markets, and such specificity generally increases an advertiser’s chances of connecting with consumers.
Overview
When marketing a product or service, a company must determine the best approach for connecting with potential customers and persuading them to buy the product. While a business can advertise its products widely in the hope of reaching a broad audience, this is generally not a cost-effective approach, as the company spends money on advertisements that are irrelevant to many consumers and may therefore be ignored. To market its products more efficiently, a business must define a target market or markets for each product or type of products. By targeting narrower segments of society, a business can reduce waste and focus on connecting with consumers who are more likely to purchase a particular product or who are likely to help popularize a company’s brand.
Typically, target markets are based on extensive market research, from surveys to consumer interviews to focus groups, and take into account a variety of characteristics, including the ideal customer’s demographics, geographic location, behavior, lifestyle, and purchasing habits. Target markets may be extremely narrow or somewhat broad, depending on the nature of the product or service being advertised. For example, a company might advertise a product to the broad category of women between the ages of thirty and fifty-five, or it might advertise to the narrower category of college-educated women who have at least one child between the ages of one and three, work outside the home, and live in the northeastern United States. Similarly, for businesses that sell to other businesses, the data used to define the target market would include business type, budgets, and job titles of prospective clients. In order to advertise to the desired target market, a company must also be aware of which medium will best reach them, be it a print, broadcast, or digital platform.
While basic consumer demographics are important, companies can benefit greatly from investigating what that data truly indicates about the customers. For example, a company might advertise a product to a target market of men and women between the ages of sixty-five and eighty-five. These gender and age demographics are key to defining the target market; however, what they suggest about the lifestyles and purchasing attitudes of these consumers is even more significant. A consumer who falls into this group is likely retired and thus may have more time for leisure activity than younger adults do. He or she may be a grandparent and may therefore be interested in purchasing children’s products, such as toys, books, and clothing. The consumer may receive a fixed income, which can affect purchasing habits. (Such a specific subsection of a target market is called a "niche," and dividing a target market into such groups is termed "market segmentation.") Companies seeking to advertise to these markets must take these and many other factors into account to ensure success; similar challenges and opportunities exist for each potential target (or niche) market. Target markets may also shift over time, as a company's reach or products change.
Marketing Mix
One marketing system that businesses use in to reach target markets is referred to as the marketing mix, the use of four elements to capture and promote a brand or product’s selling points. Also known as the “Four Ps,” the four elements in marketing mix are product, price, promotion, and place. The Four Ps are used to shape the marketing mix around the needs, wants, and motivations of the previously noted target audience. Each element adds a different aspect to the marketing mix:
Product: Either a tangible good or intangible service that fulfills a need or want of the target audience.
Price: The cost costumers pay for the product based on the product’s real and perceived value to the target audience, as well as the goal profit margins, supply, demand, and marketing strategy.
Promotion: The way in which marketing agencies release product information to the target audience, including advertising, social media marketing, and video marketing.
Place: Where a company sells their product to best reach the target audience, including specific stores, television channels, or country regions.
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