Target Market: Types and Examples

Target Market

A group of individuals who share certain traits and who are recognised by a corporation as having the potential to purchase its goods is referred to as the firm's target market. When a firm is developing its product, deciding on its packaging and how to advertise it, one of the most important things it can do is determine its target market.

A target market may be broken down into more general subgroups based on factors such as age range, geography, income, and lifestyle. There are a lot of different demographics that may be taken into account. It is possible to take into consideration the period of life they are now in, as well as their occupations, hobbies, and interests.

Identify a potential target market

The following strategies can assist you in determining who your ideal customers are:

1. Conduct an analysis of your products and services by asking yourself what issues your goods and services answer and, in turn, who they appeal to. For instance, if you own a landscaping company, the target market for your services would be homeowners who have lawns and, more precisely, those who are too busy to take care of their yard themselves but have the financial means to hire someone else to do it.

2. Carry out market research Conducting market research is the second step in analysing your target market. Analyzing your target market involves more than just knowing your clients; you also need to understand the market. Analytics tools such as Quantcast, Alexa, and Google Trends provide you with a full perspective of the landscape by allowing you to discover and evaluate rivals, assist you in finding new clients, and enable you to establish areas in which you may improve.

3. Construct customer profiles and divide the market into distinct groups Market segmentation refers to the act of grouping a group according to a number of different categories, such as demographics and psychographics.

4. Evaluate the Competitors To acquire a complete picture of the competitive environment, you need either conduct a competitive study or make use of the web resources that were previously mentioned. Who are the companies that provide goods and services that are similar to those offered by this one? How much do they charge for their services? What is it that they are doing that is different?

Different types of target market

There are several distinct segments that make up the target market. These include:

• Geographic: A company may decide which market to concentrate on depending on the location of its operations and the kinds of goods and services it offers to customers. This method of segmenting the target market takes into account the possibility that various customer groups located within the same geographic region may have varying needs for certain goods or services.

For instance, if a firm produces water-resistant paint that protects the exteriors of homes during the monsoon season, the ideal places to advertise such product would be in regions that have consistent high levels of precipitation throughout the year. Businesses are able to identify suitable sites by utilising the country code, postal code, area code, city, province, state, and any other relevant combination of these.

• Researching the population's demographics is one of the first steps a company has to do before selecting which ideal set of customers to target. Because of this, the organisation will be able to make choices that are well-informed and based on accurate facts. As a consequence of this, they are able to accurately define their markets and specifically target clients who meet their requirements with regard to factors such as age, gender, economic level, race, religion, education, marital status, and so on.

People between the ages of 18 and 50 should be considered when formulating a strategy for a target market by a company that sells beer, for instance.

• Psychographic is a kind of market segmentation that takes into consideration the lifestyle preferences of individuals living in a region where a firm plans to conduct its advertising campaigns and offer new items. When attempting to locate a prospective customer base, it is essential to take into account the individual's personality, attitude, interests, values, and beliefs, as well as their socioeconomic standing.

For instance, a business that is contemplating the introduction of a new pet supply is well aware that the majority of its prospective buyers would belong to higher socioeconomic brackets. As a direct consequence of this, the company's marketing efforts would concentrate on those specific individuals as its primary customer base.

• Behavioural: In order to assess how well a company's product will perform in a certain demographic or social situation, the company in question has to be aware of the relevant information. Companies will be in a better position to address the demands of customers if they have a better understanding of the purchasing patterns of those customers. The most important aspects of purchasing are usability and the characteristics of the product itself.

Example of the target market

In order to have a better understanding of the notion, let us examine several instances of target markets, including the following:

Jane has designed exquisite pieces of jewellery, and she intends to provide a one-of-a-kind collection to the fashionable women living in the city. She made every effort to differentiate each design from the others since there were already other rivals that dominated the market.

Before putting the designs up for sale, she surveyed people through social media and developed several marketing strategies. She made the observation that the females in the community are seeking for something that is unique compared to what the preferences of others are in terms of clothing.

After doing various types of research on the population, she came to the conclusion that such patterns would make excellent components for beautiful jewellery. Her marketing strategy was directed for middle-aged ladies who have a desire to display their distinctive jewellery collection at parties by donning an outfit that stands out from the crowd.

Her marketing efforts were successful, and the growth in sales was much more rapid than anticipated.