In this article, we have featured What Is Target Market Identification? To be successful in business and marketing, you must first identify and understand your target audience. It’s critical to know who your ideal customer is before you begin marketing your product or service.
You should learn how to do a market analysis and identify distinct groups of customers. Regardless of how good the pricing or how premium the features are, a Toyota will not appeal to every car buyer.
It’s impossible to generalize about human beings. It is impossible to cater to everyone’s preferences, price sensitivity, desire for luxury goods, and amount of disposable income.
As a result, corporations focus their efforts on a specific segment of the population, known as the “target market,” rather than broadening their scope.
What is a target market?
You can think of a target market as a group of people to whom you want to market your goods or services. It’s possible to break each group down into smaller sub-groups.
Age, geography, wealth, and way of life are the most common factors used to divide the population into segments. The best places and methods for marketing your company will become clearer once you’ve determined
who your target market is.
Target market members have a common set of needs and traits. Demographics and the unique need that the organization aims to solve are frequently used to explain these parallels.
Common characteristics of the target market include age, gender, income, education, and geographic location, just to name a few common ones. People in their 30s and 40s who live or work within a 3-block radius of a neighborhood coffee shop may be a good target market for such a business.
A company’s advertising, pricing, and promotions will be more effective if it can pinpoint its ideal customer base and use that information to its advantage.
On the other hand, failing to clearly define a company’s target market might result in marketing efforts and goods that fall short of satisfying the expectations of the majority of customers.
It is also important for companies to build a targeted audience so that they may compete directly with their competitors, such as laptop company that offers extremely low-cost laptop.
Because it didn’t strive to meet any other demands but the price, its only basis for competitiveness is price, and that’s going to be its downfall.
By comparing the size and growth of various groups of the population, companies are able to determine which demographics they should focus on.
It is possible to segment the population by considering a variety of criteria, such as whether the person is a single professional woman, which is an excellent illustration of this.
Companies then assess the attractiveness of each market sector. Targeting high school and college students, like in the case of the coffee shop, maybe a mistake if the demographic is not likely to stay in that area long term.
That place may be viewed as a student hangout by older people, who may choose a different coffee shop when the students go. The coffee shop would then have to work to win back its older customers, who may have already formed a strong preference for another store.
It is crucial that the organization evaluates its own goals and resources in order to determine whether or not a certain target audience will be profitable.
Although the baby boomer group is the largest in terms of age, they are also less likely to spend on luxuries than younger generations.
A luxury retailer has to target the segment that is most likely to spend the most money on its products, thus this is a significant distinction.
Another way of saying this is that companies that can’t compete on price may strive to differentiate themselves by emphasizing other factors, such as value or uniqueness, rather than just price.
Aren’t there any other options?
If you want to be successful in business, you must understand who your target audience is. It’s easier to find paying clients when you know who your current consumers are.
Reaching clients and generating revenue can’t get any better than this. You’ll waste money and time if you try to reach too many people at once or discover too late that there aren’t enough people interested in what you’re offering.
Your product or service can be promoted more effectively if you have a better understanding of your target market. You’ll be aware:
how to find them
- what kind of media sources do they rely on
- what they buy and where they shop
- the best way to persuade people to buy what you’re selling.
Insight into Target Markets
Few products on the market today are made to appeal to all demographics. Rosemary Mint Bath Bar by Aveda costs $20 per bar and is targeted at the affluent and environmentally conscious woman who is willing to spend more for quality.
For $110 a bar, Cle de Peau Beaute Synactif Soap targets wealthy, fashion-conscious women who are ready to fork up the extra money for a high-end, premium product. For less than $4.50 on Amazon, you can buy an eight-pack of Dial soap.
When selling a product or service, it is important to determine who will be interested in it and who will end up purchasing it. Additional marketing, advertising, and word-of-mouth promotion can help expand its user base over time.
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Conclusion: What Is Target Market Identification?
A product is defined by its target market, and vice versa. The design, packaging, pricing, promotion, and distribution of a product can all be affected once a target market has been defined.
The packaging of a product geared at men will not be pink. A drugstore will not carry a high-end cosmetic. Branded drawstring bags and shoeboxes are included in the purchase price of an expensive pair of shoes. That’s why all of those qualities are so important to the target audience.