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A target market is a group of consumers or organizations most likely to buy a company’s products or services. Because those buyers are likely to want or need a company’s offerings, it makes the most sense for the company to focus its marketing efforts on reaching them. Marketing to these buyers is the most effective and efficient approach. The alternative - marketing to everyone - is inefficient and expensive. To determine who your best target market consists of, start by answering three basic questions: Get a little more specific about what pain points your product or service addresses and then who typically feels that pain. Once you are clear about who is most likely to need or want your product or service, it’s time to get even more specific about this group, or groups, of people. There are several different ways to define your target market, based on different characteristics. You should decide which approach comes closest to exactly describing your perfect customer: Armed with a clear understanding of your target market(s), you can now begin to craft marketing messages that appeal to that particular group’s pain points and preferences.
It’s never been easier to own and operate a beautiful, fully-featured online store. Start your free 14-day trialTarget market segmentation: Defining a target marketMarket segmentation is the process of dividing a market into smaller groups of people, or segments, to identify areas for possible market growth. Through segmentation, marketers can identify the key characteristics that define their target market and direct marketing efforts to their unique needs, interests, and personalities. To help you define your target audience, the section below contains descriptions of four of the most common types of market segmentation. Though each segmentation is distinct and offers its own view of a target market, it is also common for marketers to use many of them together to paint a more complex and telling portrait of their potential customers. Demographic segmentationDemographic segmentation classifies consumers based on specific attributes, such as age or income level. Demographic segmentation offers a glimpse of consumers as actual people in the real world using common data collection methods. Typically, this segmentation is best used for business-to-customer (B2C) marketing efforts. Typical attributes that to consider during demographic segmentation include:
Psychographic segmentationPsychographic segmentation classifies consumers based on their psychological and personal traits, such as values and attitudes. Unlike demographic segmentation, which describes who consumers are, psychographic segmentation offers a glimpse into the motives behind why they buy something. Typically, this segmentation is as helpful for B2C and business-to-business (B2B) marketing efforts. Common psychological characteristics and traits to consider during demographic segmentation include:
Firmographic segmentationFirmographic segmentation classifies companies and businesses into a set of shared attributes, such as their industry and number of employees. In effect, firmographics is akin to demographics, except that it focuses on the characteristics of businesses rather than people. As a result, it is used exclusively for B2B marketing. Common attributes to consider for firmographic segmentation include:
Behavioral segmentationBehavioral segmentation classifies consumers based on their behaviors surrounding products or services, such as when they decide to purchase them and how they use them. By focusing on consumer behavior, behavioral segmentation provides a look into how consumers interact with businesses, which allows marketers to improve the effectiveness of their efforts. Typically, this segmentation is as useful for B2C as B2B marketing efforts. Common areas of consideration for behavioral segmentation include:
Target market strategiesA range of strategies allows you to market your product or service to your target market. Typically, these strategies are broken down from the broadest target market to the most narrow and specific. The exact method you use will largely depend on the target market you have identified. Read on to learn more about four of the most major target marketing strategies. Mass marketingMass marketing is a marketing strategy that forgoes segmenting a market and instead advertises to the broadest possible number of people. Unlike other marketing efforts, mass marketing doesn’t create different campaigns for different market segments but instead runs a single campaign for the entire market. Mass marketing is particularly attractive to companies selling products or services with broad appeal. For example, gas companies, telecommunications companies, and manufacturers of salt and sugar typically only conduct mass marketing campaigns because nearly the entire market uses their products. Differentiated marketingDifferentiated marketing is a marketing strategy in which a business creates different marketing campaigns to appeal to different target audiences. By differentiating their marketing campaigns, businesses are able to more effectively articulate their value proposition to various market segments and, ideally, increase the success of their marketing strategy. In order to reach diverse segments, differentiated marketing requires businesses to dedicate more of their budget to the creation of different marketing campaigns. As a result, differentiated marketing is a strategy well-suited to businesses selling goods and services to a target market composed of distinct target audiences. Niche marketingNiche marketing is a marketing strategy in which a business focuses all its marketing efforts on a highly specific and unique target market. As a result, niche marketing often targets gaps in the marketplace, where the needs of specific customers are not currently being met. In targeting a niche, businesses can craft highly targeted advertising campaigns that appeal to their specific market. In turn, these efforts are well-suited to smaller businesses looking to enter an already crowded marketplace that nonetheless includes several, specific gaps that are currently not being serviced. MicromarketingMicromarketing is a marketing strategy that specifically targets a narrow segment of a niche market. Typically, the target audience of a micromarketing campaign is defined by specific characteristics such as age, job title, geographic location, or gender. As a marketing effort that targets a highly specific group, micromarketing can also be more costly than other marketing strategies, such as mass marketing. In effect, micromarketing is best suited for target audiences where the rewards outweigh the potentially costly effort to reach them. Get market readyTo help you hit a bullseye on your next business undertaking, you might consider obtaining a professional certificate in Social Media Marketing offered by Meta. The University of Illinois, meanwhile, offers a specialization in Digital Marketing that provides insight into the data collection and analysis methods used by marketing professionals. Whatever you decide, though, just remember that thoroughly identifying your target market can help you hit your marketing targets.  professional certificate Meta Social Media MarketingLaunch your career in social media marketing. Build job-ready skills and credentials to go from beginner to job ready in about 5 months. No degree or prior experience required. 4.9 BEGINNER level Average time: 7 month(s) Learn at your own pace Skills you'll build: Performance Advertising, Digital Marketing, Brand Management, Social Media Marketing, Content Marketing, Marketing, Social Media Marketing Strategy, Content Development, content management, Marketing Content Development, Campaign Management, Ad Management, Meta Ads Manager, Meta advertising, Marketing Optimization, Digital Analytics, Marketing Strategy, Communication, Ads Manager specialization Digital MarketingDrive Customer Behavior Online. A six-course overview of the latest digital marketing skills, taught by industry experts. 4.6 BEGINNER level Average time: 8 month(s) Learn at your own pace Skills you'll build: Digital Marketing, Marketing, Pricing Strategies, Marketing Mix, Product Strategies, Data Collection, Analytics, Data Analysis, Data Visualization (DataViz), Marketing Analytics, Marketing Performance, Marketing Channel, Social Media, Mobile Marketing, Integrated Marketing Communications, Content Marketing, search marketing, Brand Communication, Marketing Plan, Search Advertising, Marketing Performance Measurement And Management Related articlesArticle sources1. CoSchedule. “The Marketing Management + Strategy Statistics You Need to Know in 2019, https://coschedule.com/marketing-statistics.” Accessed June 3, 2022. |
What refers to some aspect of a product or company that makes it more appealing to target customers?
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