A target market is a set of people identified as the most likely potential product customers because of their shared features such as age, income, and lifestyle. Classifying the target market is a key part of decision-making when a company designs, packages, and advertises its product.
- A target market is a collection of customers with shared demographics identified as the most likely buyers of a company’s product or service.
- Identifying the target market is important in developing and implementing a successful marketing plan for a somewhat new product.
- The target market also can notify a product’s specifications, packaging, and distribution.
What Is the Meaning of a Target Market?
A target market describes a product as well as vice versa. When a target market is identified, it can affect a product’s design, packaging, price, promotion, and distribution. A product aimed at males won’t be packed in pink plastic.
A luxury cosmetic won’t be sold in a pharmacy, and an expensive pair of shoes comes with a branded cloth drawstring bag and a shoebox. Those factors signal the target audience that they have found the right product.
What Is Target Market Segmentation?
Target market segmentation divides your target market into lesser, more specific groups. It agrees with you to create a more relevant marketing message for each group. Remember — you can’t be all things to all persons. But you can remain different things to different groups of people.
For example, I’ve eaten plenty of Impossible Burgers as a vegetarian, and I’m a target customer. But vegetarians are an astonishingly small target market segment for Impossible Foods: only 10% of their customer base.
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