Target markets are defined as a group of people sharing traits that a company sells its services or products to. Businesses use target markets to understand their potential customers and develop strategies to help them achieve their marketing and business goals.
The process of identifying a target market is a fundamental aspect of any new venture regardless of whether it’s an Fortune 500 company or a soon to be launched small-scale company. Knowing the market you want to target will help you achieve success.
This article will explain the reasons why targeted markets are important as well as examples of their use and how they are identified by segmentation, and the various marketing strategies employed to get them to listen. There are also future steps and recommended courses to aid you in your next marketing venture.
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The target markets of the world: What are they? Why do are they important and some examples
When you determine a target market, you will be able to improve your overall marketing results. This section will help you’ll find out why this is so important and see examples in action to help get a better understanding of how it works.
Why it is important to target markets
The reason for the process of identifying a market to target is straightforward: to gain an understanding of potential customers who might buy an item or service, in order to focus marketing efforts.
Knowing the market they are targeting helps companies design marketing campaigns that the people who are their customers. There are a variety of options to determine a market, which includes psychographics, demographics and firmographics, and consumer behavior.
Research suggests that preparing thoroughly the market strategy, which involves choosing a market for your business and a marketing plan, can lead to success. One example is a study by CoSchedule discovered that marketers who wrote down their strategies were 414 percent more likely to be successful over those who didn’t 11. A thorough understanding of a market’s potential can help companies reach their goals in marketing.
Target market examples
Companies define their target market in order to determine the people they’re selling to and to connect with those customers via their marketing campaigns. In reality, each product or service that is on the market today could be described as being directed at a certain market.
Target markets can be identified by many factors, like common demographic characteristics or traits. A few examples of target markets and products that could be sold within them include:
- A action figure aimed at boys between the ages of 9 and 14 years old.
- Pets in fashion with fashionable clothing that targets pet owners who have disposable income of 25 to 45
- A top-quality, direct-to-door dining kit business that caters to professional professionals who have disposable income of 30 to 45
Target market vs. target audience
Sometimes, people interchangeably employ “target market” and “target audience.” However regardless of their similarity they are different for different types of people.
The term “target market” refers to the broad population of people that a company seeks to reach via its marketing campaigns. In contrast, a targeted audience is a part of the target market that a company tries to reach with targeted marketing campaigns.
Imagine that the tech company that has designed a smartwatch that is capable of receiving phone calls, responding to texts opening apps, as well as keeping an eye on wearer’s blood pressure and steps count.
While the watch is likely to appeal to a wide range of people (the audience for the watch) The company could create a targeted marketing campaign that emphasizes the health benefits of the watch to draw a younger audience of health-conscious customers. This older group of health-conscious people could be an ideal target market.
Segmentation of the market by target: Definition an appropriate market
Market segmentation is the method of splitting a market into smaller segments of people or segments, in order to determine areas of potential growth. By segmenting, marketers are able to determine the primary aspects that define their market and tailor their efforts according to their individual desires, needs and interests.
To help you determine your ideal customer The following section provides brief descriptions of the four most commonly used kinds of segmentation. Although each segmentation is unique and provides its own perspective of a market’s potential however, it is common for marketers to mix a number of them in order to create a an even more intricate and compelling image of their prospective customers.
Demographic segmentation
Demographic segmentation categorizes consumers based on certain attributes like income or age. Demographic segmentation provides a view of people as they are living in real life by using standard data collection techniques. It is typically ideal for business-to customer (B2C) marketing strategies.
The most common attributes to take into consideration in determining demographic segmentation are:
- Age
- Religion
- Ethnicity
- Income level
- Size of the household
- Education level
- Geographical place
Psychographic segmentation
Psychographic segmentation is a method of classifying consumers according to their personal and psychological traits like values and beliefs. In contrast to demographic segmentation, that defines the type of consumer in a way, psychographic segmentation gives insight into the motivations for which they purchase something. In general, this kind of segmentation can be useful for both business-to-consumer (B2C) or business-tobusiness (B2B) marketing strategies.
Common psychological traits and characteristics to take into consideration when segmenting the population are:
- Personal values
- Religious beliefs
- Opinions
- Attitudes
- Aspirations
- Political preferences
- Lifestyle
Segmentation of the firmographic
Firmographic segmentation groups businesses and firms into a collection of shared features, including their industry, as well as the amount of employees. The concept behind firmographics is similar to demographics however, it is focused on the characteristics of companies rather than individuals. This is why it is only used to market B2B.
Common aspects to be considered to determine firmographic segmentation are:
- Industry
- Location
- Size
- Status or Structure
- Performance
Behavioral segmentation
Behavioural segmentation is a method of classifying consumers according to their actions regarding products or services, for example, when they choose to buy them, and the way they make use of the products or services. Through focusing on the behavior of consumers and behaviour, behavioural segmentation gives an insight into how customers interact with businesses. This lets marketers increase the effectiveness of their campaigns. Typically, this type of segmentation can be as effective in B2C as it can be used for B2B marketing strategies.
The most common areas of focus to consider for behavioural segmentation are:
- The frequency of use
- Occasion
- Brand loyalty
- Benefits required
Strategies for a market’s target
The variety of strategies available allows you to promote the product you offer to the target market. Most often they are broken down into the largest market you can target to the narrowest and specific. The method you choose to use will depend on the market you’ve identified.
Find out more about the four most effective strategic marketing tactics for target markets.
Mass marketing
It is an strategy for marketing which doesn’t focus on segmentation of a market and instead targets the largest possible amount of people. In contrast to other marketing strategies that are based on segmentation, mass marketing does not create distinct campaigns for various segments of the market, instead it runs one campaign that covers all markets.
Mass marketing can be particularly appealing for companies that offer goods or services that have wide appeal. For instance, companies like gas as well as telecommunications companies and sugar and salt producers generally only run large-scale marketing campaigns since most of the market utilizes their products.
Differentiated marketing
Differentiated marketing is a type of marketing method in which a company develops different marketing campaigns that draw in different types of target audience. By separating their marketing efforts they can better communicate their benefits to different segments of the market and, ultimately, boost the effectiveness of their marketing strategies.
To reach a variety of groups, differentiated marketing requires companies to allocate more money for the development of various marketing campaigns. Therefore, differentiated marketing is an approach that is ideal for businesses that sell goods or services to a market that is comprised of distinct target groups.
Niche marketing
It is an strategy whereby a company concentrates all of its marketing efforts on a specific and distinctive target market. In turn, niche marketing is often targeted at areas of market inefficiencies, which are areas where the requirements of particular customers aren’t being addressed.
By focusing on a particular area of interest, businesses can design extremely targeted marketing campaigns that are appealing to their market. These efforts are ideal for smaller companies seeking to break into an already competitive market, but with certain needs that aren’t currently being addressed.
Micromarketing
Micromarketing is a method of marketing that focuses specifically on a small segment of a market that is niche. The typical target audience of a micromarketing marketing campaign is determined by specific attributes such as age, position title, geographical location, or gender.
A marketing strategy that is targeted at a specific audience micromarketing may also be more expensive than other strategies, like mass marketing. In reality, micromarketing is best suited to targeted people whose benefits are greater than the potential cost to connect with them.
Make sure you are ready for the market
To learn more about the market segments and strategies that will meet the needs of your company it is possible to broaden your knowledge of marketing by completing the Professional Certificate, such as the Google Digital Marketing and E-Commerce Professional Certificate. This will equip you with the knowledge and skills needed to be prepared for a entry-level marketing job, or to get a greater understanding in the field of marketing for your business within a short period of time.
