Target market refers to a group of customers within the serviceable market available to a business, to which a business is targeting its marketing efforts and resources. A target market for a product or service is a subset of the total market.
Target market goes hand-in-hand with other go-to-market strategies. Typically, the target market is made up of consumers who exhibit similar characteristics (such as age, location, income or lifestyle) and are considered most likely to buy market offers from a business or are likely to be the most profitable segments for the business to service.
After identifying the target market(s), the business will normally tailor the marketing mix (4 Ps) with the target's needs and expectations in mind. This may involve carrying out additional consumer research to gain in-depth insights into the motivations, buying habits and patterns of media use of the typical consumer.
Selecting an appropriate target market is one of the final steps in the process of segmentation of the market. The choice of a target market depends heavily on the judgement of the marketer, after conducting research to find those segments with the most potential for the business.
In some cases, a business might choose multiple market segments for the focus of its activities.
In that instance, a primary target and a secondary target would be identified. The primary target markets are those market segments to which marketing efforts are primarily directed and where more resources are allocated to the business, while the secondary markets are often smaller or less vital segments for the success of a product.
Choosing the target market "right" is a difficult and complex decision. But a number of metrics have been developed to help make this decision.
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