What is target market

Market segmentation can help you understand how your products or services appeal to individuals across several demographics within your target market. As its name implies, geographic segments can be used to target people living in a specific area. This could be as large as an entire continent, or as regionalized as a specific bus stop. Psychographic segmentation categorizes people by their personality, interests and other factors. This can be a powerful way of marketing the same product to people from seemingly radically different demographics, and plays a crucial role in the target marketing of businesses like Lush.

Behavioral segmentation refers to — yep, you guessed it — how people behave. However, this type of segmentation refers specifically to what potential customers expect from a product or service, and how their actual experiences influence their behavior.

Well, although I can already feel your disappointment, I hope that this information has been useful. Originally from the U. Home Blog. Last updated: June 22, How old are they? The majority of millennials and boomers have feet, but what they choose to put on them, and how they make purchases pretty different. What are their interests or hobbies? Finding out what people are into will help you connect with them.

Everyone needs friends. Where do they live? Is geography a limiting factor for your customers or for you? Are they able to get to you easily? Is there plenty of parking? Public transportation? Can you deliver? On the upside, most of my 12 or so regular customers were either super fit or could fix an old watch. How do they make a living? Knowing what your primary customers do can help you adjust your hours to fit their needs, or help you devise special offers.

People like to feel special. How much money do they make? Do they own their own homes or do they rent? Depending on the answer and what you sell, you may need to tweak your messaging to resonate with your audience. Case study: The wireless industry The wireless industry is a great example of small businesses succeeding with niche markets and target marketing.

The great thing about getting to know your customers is that not only will you be able to track down new customers just like them, but your tried-and-true customers will become more loyal—and spend more money Case study: Sephora One example that comes to mind is Sephora, a makeup and skincare retailer.

In conclusion The only thing I learned from my do-nothing plan was to never take marketing advice from a disembodied voice in a Kevin Costner film. Michael Kerr. Starting or Growing a Business? Check out these Offerings. How old are they?

Where do they live? What is their marital status? Do they have children? How old are their children? What is their education level? What do they do for a living? What is their average income? Customer interests and buying habits What motivates a customer to make a purchase? Who makes the buying decisions? How often do they purchase a product? Do they shop online or prefer to see their product before they buy?

How long does it take them to make a buying decision? It involves a specified series of customer qualities that the business believes its products or services will appeal to. The target market can be a type of person for a business-to-consumer B2C company or a type of business for a business-to-business B2B company. The target market is not the same as the target audience.

The audience is narrower—it refers to the group of consumers the business expects to actually purchase the product. They may or may not overlap with the target market. For example, a children's toy may have boys ages 9—11 as the target market and the boys' parents as the target audience. It may also be defined as the consumer segment most likely to be influenced by an advertising campaign. The target market is also distinct from the buyer persona.

While the target market describes a type of person in general, the buyer persona is a complete but hypothetical individual. The buyer persona can help narrow down an advertising strategy for B2B businesses depending on who they speak to when selling within their target market. Well-defined target markets can help a business increase its profits and attract new customers by boosting marketing efficiency. This is because the business does not waste resources and time marketing to consumers who are unlikely to be interested in its products.

Having a good understanding of target markets can help small, startup and niche businesses compete with bigger companies. Here are some factors to consider when defining your target market. It may help to reflect on your product or service's distinguishing features when you assess your consumers.

Demographics describe who your target customers are in terms of categories like their age, gender, employment status, life stage, family structure, religion and income. Here are a few examples of demographic descriptions of your target market:.

Geographics describe the physical location of your target customers. Factors to consider include:. Also, consider whether your target market uses your product or service in the same place they purchase it.

Ask yourself if they are likely to travel with it or send it to someone else.