Target Market - Explained
What is a Target Market?
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Table of ContentsWhat is a Target Market? How to Choose a Target Market?
What is a Target Market?
When we market we want to choose an appropriate target. In other words, we don't expect to sell everything to everybody. This makes sense, as there we have so many options out there in the marketplace that as a consumer we're going to pick and choose what we think is best for us.
A marketer we shouldn't expect that everybody will buy whatever product or service we're selling.
How to Choose a Target Market?
The key in marketing is not to fight uphill battles. in other words, it's rare that we really want to change people's minds about what they need or want.
Now sometimes they don't know what they need or want and then we need to educate them. Generally, we want to target the easiest group to sell to. In other words, we want to target people that already have a reason to like us or to want our product.
Of course, we must determine whether the group that wants or needs our product most is of sufficient size to account for the necessary volume or quantity of sales that the business needs to operate.
Target Market and the Marketing Plan
The target market section of the marketing plan contains the following elements.
Next Article: Marketing Objectives and Goals Back to: MARKETING
- Who are your primary customers?
- Can they be grouped into a segment?
- How much of the total company sales are they projected to occupy?
- Who are your secondary segments? Characteristics? Percentage of sales?
What is the size of each customer segment? (Give both the number of potential customers or market valuation.)
What is the priority level of the given segment?
- How much effort is needed to sell to the given customer segment?
- Is the product purchased regularly, on impulse, multiples at a time, etc.?
- How aware of the product is the average customer?
- Other factors that may affect purchasing habits:
- Gifts, Seasonal buying, emotional considerations, obsolete status, price (discounts & sales), status, prestige, etc.
What are the like characteristics or preferences that make them capable of grouping and targeting with marketing efforts?
- Types of Characteristic information:
- Demographic information
- Geographic Location
- Psychographic Characteristics
- Cultural or activity preferences
How the Product/Service Used
What is the type, frequency, intensity of use?
- What need or want is the product meeting for this customer segment?
- How does the customer perceive the product or service?
- How does the product or service compare to the customer perceptions. (i.e., If perceived a reliable, is it reliable? High quality? Easy to use?
- What is the value proposition that most appeals to the given customer segment? Examples:
- Customer Service
Requirements to Reach Each Segment
- Each segment may have special characteristics that change the method that is most effective to reach it.
- This may affect distribution channels as well as product features.
- What is the expectation of durability of customer demand in this segment? (E.g., Is the customer segment part of a trend?)
- Include any market trend reports to support this.
- What are the boundaries for the market(s) that your business can presently or intend to address?
- Break down by customer group and/or geography.
- What is a Marketing Plan?
- Outline for Marketing Plan
- The Mission and Product/Service Statement
- Situation Analysis
- Target Market
- Marketing Objectives and Goals
- Marketing Strategy
- 5 Ps Product
- 5 Ps Price
- 5 Ps Promotion
- 5 Ps Placement
- 5 Ps Packaging
- 5 Ps People
- 5 Ps Physical Environment
- 5 Ps Process
- Action Plan
- What is a Market?
- What is Target Marketing?
- What is Market Segmentation?
- How Many Segments to Target?
- How Do We Segment Consumer Markets?
- Benefit Segmentation
- How Do We Segment Business Markets?
- Using Data for Market Segmentation
- Buying Power Index
- What is Customer Relationship Management?
- What is Behavioral Targeting?
- What is Positioning?
- What is a Positioning Statement?
- What is a Perceptual Map?
- Cultural Factors Affecting Marketing
- International Marketing is Challenging