Target refers to a group of potential customers to whom a company wants to sell its products or services.
Consequently, Target is also the set of potential customers to direct its marketing efforts. A target market is a part of the total market for a particular good or service.
Consumers who make up a target have similar characteristics, including geolocation (where they buy from), purchasing power, demographics, income, interests, etc.
Target identification is essential for any company in developing a marketing plan. Not knowing the target could cost a company a lot of time and money.
The Topic Of This Post
- 1 Meaning of Target
- 2 How to identify the target
- 3 Segment the target
- 4 Target and marketing
Meaning of Target
Part of the success of selling a good or service is knowing who it will turn to and who will ultimately buy it. That’s why companies spend a lot of time and money defining and monitoring the target audience. Each product or service is aimed at a specific type of consumer, who is generally cautious with their money.
Targets are generally classified by age, location, income, lifestyle, and interests (think Facebook advertising ).
Defining a specific target allows a company to position itself on certain market factors to reach and connect with customers through sales and marketing efforts.
How to identify the target
Testing a target market often happens well before a product launch. During the testing phase, a company can use a limited number of product launches and focus groups, allowing product managers to understand the most vital aspects of the product.
Once a product is released, the company can continue to monitor the target market’s demographics through sales tracking, customer surveys, and various other activities that allow the company to understand what customers are asking for.
Defining a target market is essential to any business because it means the difference between selling a product or service and staying on the sidelines while the competition increases its revenue.
Not knowing your target can be a big mistake for a company. Finding new customers or customers without knowing who they will be targeting can cost the company a lot of time and money.
Segment the target
Dividing a target market into various segments is like dividing the population into groups that key characteristics can measure. These include gender, age, income level, education, religion, marital status, geographic location, and interests.
Consumers who fall into these groups tend to value the same products and services, so narrowing these segments is one of the essential factors in determining the target.
For example, people in a higher income bracket may be more likely to buy a Mercedes than a Fiat.
Essential: a company can have more than one target, for example, a primary target, the main target, and a secondary target, which is not that big but still has growth potential.
Target and marketing
The target is a central point within a marketing plan that determines other essential factors for the product, such as distribution, price, and promotion efforts.
The target market also determines significant factors about the product itself. A company can modify certain aspects of a product, such as the amount of sugar in a soft drink, so it is more likely to be purchased by consumers with different tastes.
As a product’s sales grow, it can also expand its target market internationally.
The international expansion allows a company to reach a more significant subset of its target market in different world regions.
In addition to international expansion, a company may also find that its domestic target market expands as its products gain greater market appeal.
The expansion and growth of target markets are one more reason companies monitor their sales and customer preferences to evolve revenue opportunities great lakes student loans.