A target market comprises individuals identified as the most likely customers for a product based on shared traits, such as age, income, and lifestyle.
Understanding the target market is vital when designing, packaging, and advertising a product
Key Takeaways
- A target market is defined by shared demographics; these individuals are the most probable buyers of your product or service.
- Pinpointing the target market is essential for crafting a successful marketing plan for any new product.
- Insights about the target market can dictate a product’s features, packaging, and distribution.
Define Your Product’s Target Market
Part of creating a new product involves visualizing the consumers it will attract.
A product must solve a specific need or problem. This is seldom universal but more likely addresses a segment of consumers, such as environmentally-conscious vegetarians, or avid outdoor enthusiasts.
Envisioning your most likely target market aids in refining the product’s packaging, marketing, and placement.
The Four Key Market Segments
Market researchers often utilize surveys to outline psychographic profiles and divide consumers into four primary segments:
Demographic
These are foundational characteristics defining your target market, such as age, income level, gender, occupation, and education.
Geographic
Regional preferences play a significant role, especially in this age of global markets.
Psychographic
Beyond mere demographics, this segment delves into lifestyle, interests, attitudes, and values.
Behavioral
This segment taps into the actions of a company’s existing customers, providing actionable insights for new product developments.
Example: Target Market in Action
Each of the four market segments can help determine the ideal customer for a new product:
Imagine 100,000 Italian restaurants in the U.S. They all have broad public appeal. However, a local pizza joint may mostly cater to young, budget-conscious customers, whereas an upscale establishment might attract wealthy, trend-conscious foodies willing to travel for an innovative menu.
A savvy business owner adapts the menu, decor, and marketing plan to appeal to their target market.
The Importance of Target Markets
Few products are designed to appeal to everyone. Consider the Aveda Rosemary Mint Bath Bar for $26, targeted at upscale, eco-conscious women, compared to an eight-pack of Dial soap for $12, designed to
Related Terms: demographics, geographics, psychographics, behavioral patterns, market research.
References
- National Geographic. “How Italian Cuisine Became as American as Apple Pie”.
- Aveda. “Rosemary Mint Bath Bar”.
- Cle de Peau. “Synactif Soap”.
- CVS. “Dial Antibacterial Deodorant Bar Soap, White”.
- Coca-Cola Australia. “Coca-Cola: From Start-Up to Global Enterprise”.
- Pepsico Partners. “Gatorade”.
- DrinkPoppi. “Home”.
