What is Target Market? Definition of Target Market, Target Market Meaning and Concept
The target market is that group of recipients to whom a specific product or service is directed. Originally, target markets were groups of individuals who were grouped by age, gender, or social profile.
The markets are considered sets of potential buyers and the human concept is taken into account, in addition to those mentioned above.
Users may have different buyer profiles depending on how they make a purchase or what decisions they make about it. Sometimes the profile of the ideal client is also used to know the target market of a company.
Factors to determine a target market
The main factors to consider when determining a target market are the following:
Geographical regions are taken into account when determining the products or services that are aimed at them and the citizens that reside in them.
For example, products destined for more tropical areas such as the Caribbean will be more resistant to heat.
Age is a factor to take into account due to the changes in preference that consumers have throughout their lives.
For example, a teenager may be interested in extreme sports and an adult in calmer sports such as swimming. The products will be oriented to this factor taking into account these keys.
You can choose to divide the target market by gender to target campaigns depending on the item being advertised or do it in a way that is attractive to both genders.
For example, a perfume oriented to women, but that attracts attention in men as a possible gift of value.
Advantages and disadvantages of defining the target market
The following stand out:
- Resources are optimized : Knowing the target market to which a company is directed allows selecting the most appropriate channels to market products or services. Define the strategy, communication, distribution and promotion for it, saving costs if this step is clearly defined.
- Create a more effective service or product : By carrying out a preliminary investigation, the demand will be better known and the offer can be oriented to satisfy the needs of the specific public.
- Creation of new products or services : Knowing the target market, products that meet their needs can be defined and created. Sometimes these products are produced after knowing the market that a company is targeting.
- Knowing the potential demand for the product : Knowing social, demographic or economic factors, among others, will give a more concrete and clear idea of the potential demand that exists for the product or service created.
However, defining a target market can have its drawbacks. These disadvantages focus, in particular, on the poor definition of the advantages. That is, creating a new product may not be a good idea or the potential demand for the product may not really be known. In those cases, defining a target market can be a bad idea.
On the other hand, it may be that defining a target market and acting accordingly, excessively limit the public to which it is directed and our sales are reduced.