You can order the deals you’re most likely to win using the answers to these questions. But how can you truly comprehend your target market’s ins and outs?

Take a closer look at what a target market is, how to conduct a target market analysis, some useful examples, target market segmentation, and how sales teams can utilize target markets are all covered in this article.

In this guide you will learn about:

  1. What Is A Target Market?
  2. What Are The 4 Target Markets?
  3. How To Analyze Your Target Market
  4. Target Market Examples

What Is A Target Market?

The particular demographic you want to reach with your marketing message is known as a target market. They are the people who are most likely to purchase your goods or services, and they share some traits like behaviors and demographics.

You can better understand how and where to reach your ideal potential customers by clearly defining your target market. To get the best conversion rates, you can start with general categories like millennials or single fathers, but you need to get much more specific than that.

Don’t be reluctant to be very specific. This is all about effectively focusing your marketing efforts, not discouraging customers from purchasing your goods.

Even though they are not the primary focus of your marketing strategy, customers who are not the target of your targeted advertising can still make purchases from you. Although you can’t sell to everyone, you can target some people.

Research, not intuition, should be used to determine your target market. Even if they aren’t the customers you initially set out to attract, you need to go after the people who really want to buy from you.

What Are The 4 Target Markets?

A Quick Guide to Target Markets: Why They Aren't Just for Marketers

Consumers are divided into four main groups by marketers:

The primary characteristics that characterize your target market are demographic. Each person can be classified according to their age, income level, gender, occupation, and level of education.

Geographic: In the age of globalization, this segment is becoming more and more important. Preferences specific to a region must be considered.

Psychographic: This section considers lifestyle, attitudes, interests, and values in addition to the fundamentals of demographics.

Behavioral: This is the only market segment that is based on analysis of current customers’ purchasing patterns. Based on research into the products’ historical success, new ones might be introduced.

How To Analyze Your Target Market

A Quick Guide to Target Markets: Why They Aren't Just for Marketers

Target market analysis, as the name suggests, forms the cornerstone of locating your target market. You can perform one on your own by following these five steps.

  1. Examine your offering in depth.

Look at what you are selling to determine which customers would find value in it. The following inquiries can help you with your brainstorming process.

  • What need is satisfied by your offering?
  • “Does it address any issues or pain points?”
  • “Who would benefit from your offering the most?”

After addressing these, you might want to think about asking current clients for their opinions. Ask your service department about their common issues by conducting a focus group.

You will have a better understanding of your target market if you analyze your product or service in this manner. In fact, you might find out that the people you’re trying to reach aren’t your current customers. You should better align your target market with your actual marketing goals if you notice a disconnect during this process so you can realign.

  1. Examine the opposition.

Perform an analysis of your competitors to see who they’re targeting. Look at their clientele to see if you can identify a market segment that they might be neglecting that you could target.

A competitive analysis is the most effective method for achieving this. This entails learning more about your rivals, their products, and even their sales strategies.

You can even find target market gaps you can fill by keeping an eye on your rivals. Are there any niches they don’t concentrate on?

This might prompt you to develop new products to appeal to a different market or to geographically expand into new markets.

  1. Determine the segmentation criteria.

Several different factors can be used to segment a target market. Demographic, geographic, and behavioral factors can be used to segment consumers.

Basically, this is how you create a buyer persona. Your target market will be divided into a number of target customers, also referred to as (you guessed it) buyer personas.

For instance, perhaps the midsized businesses in your target market are those looking to buy marketing automation software. You could categorize your target audience into a number of groups, such as heads of marketing departments, top salespeople, business owners, or CEOs.

Some of the most popular methods for dividing a target market are listed below:

  • Age\sGender\sIncome\sLocation
  • Behavior\sLifestyle
  • Values\sInterests
  1. Conduct research

The research phase continues as you start to focus on a smaller segment of the market. What advertising tactics ought you to employ to get in front of your potential target audience? Is the size of the target market sufficient for your good or service? You can better understand your target market by conducting market research.

Choosing the right target market can reveal a lot about your company. Do you envision yourself as a pipeline that moves steadily with businesses and consumers, or are you aiming to become a true velocity business?

  1. Monitor and assess your outcomes.

You shouldn’t just conduct a target market analysis, be satisfied with the results right away, and stop there. It is a continuous process. To more successfully appeal to your target market, you must continually monitor your progress, assess what you discover, and refine your target market’s definition.

Target Market Examples

A Quick Guide to Target Markets: Why They Aren't Just for Marketers

Nike target market

Nike actually offers a great illustration of what can go wrong when you try to target a too broad audience, despite the fact that it currently dominates the market.

Running shoe manufacturer Nike was founded initially. They made an effort in the 1980s to broaden their target audience beyond runners to include anyone seeking comfortable footwear. They introduced a line of casual shoes, but it was a failure.

The truth is that non-runners were already purchasing Nike shoes to wear around the house or to walk to work. This presented an opportunity for growth for Nike. Instead, they compromised the company’s brand promise and caused a financial loss.

“In the end, we came to the conclusion that we wanted Nike to be the best sports and fitness company in the world and that the Nike brand should stand for these activities. You have focus once you say that.

Nike refocused everything from product development to marketing on its target market: athletes of all levels, from pro to beer league. The company would not prevent casual users from purchasing its shoes, however.

Nike actually adopted a highly successful target market segmentation strategy after realizing the value of focus. The company’s numerous product lines all have different target markets.

To reach their various target market segments on social media, they therefore use multiple accounts. No account tries to be everything to everyone.

Takasa target market

The organic, fair trade bedding and bathroom linens are Takasa’s area of expertise as a retail home furnishings company in Canada.

The target market, as described by the founders Ruby and Kuljit Rakhra, is as follows:

“The LOHAS segment, which stands for Family Lifestyles of Health and Sustainability, is our target market. This group is already leading a green lifestyle or is working to do so. We are aware that the members of our target demo are extremely concerned about both the environmental impact of what their families consume.

They distinctly identify the product attributes that matter most to their target market in their social media content: fair labor practices and organic materials.

The City of Port Alberni’s target market

Why is a target market necessary for a city? The city of Port Alberni is attempting to “attract investment, business opportunities, and new residents” in this case. They started a rebranding and marketing campaign to achieve that.

Of course, a target market is necessary for any marketing campaign. The city defined it as follows:

Young people and young families between the ages of 25 and 45 who are family-oriented, entrepreneurial, adventurous, and active as well as well-educated and skilled professionals or tradespeople are our target market.

In their social media posts, they highlight leisure options geared toward those young, active families. They even use the handle @PlayinPA.

Atlassian Target Market

To assist developers and product managers in seeing their projects through from conception to completion, Atlassian provides a variety of collaboration tools.

Atlassian uses target market segmentation, like the majority of larger businesses, to examine various markets and separate its distinctive value propositions, jargon, and values.

By focusing on a single industry, such as retail, we can see that they collaborate with a number of significant businesses, particularly on products related to support.

This shows that even though Atlassian can work with almost anyone developing software, it is aware of how the value it offers to different market segments.

Different levels of value are produced by even the same product for two different customer types.

Starbucks Target Market

A Quick Guide to Target Markets: Why They Aren't Just for Marketers

Consider Starbucks’ target market the next time you’re enjoying a cold foam Cascara cold brew. Starbucks is the premier coffee shop in town.

Many of their locations have undergone renovations and now have a cool, modern appearance. Not terribly shocking considering that roughly 50 percent of their clientele are between the ages of 25 and 40.

If you sit and drink your coffee for more than five minutes, a barista will probably shout, “Mobile order!” Starbucks now conducts 24% of its business using a mobile device, demonstrating that they are appealing to a young, tech-savvy demographic.

The location of their stores provides us with our next hint about their target market. Starbucks is attracting professionals who are constantly on the go by placing its locations in densely populated cities. Here are a few of Starbucks’ target markets in summary:

  • Remodeled locations can accommodate their largest demographic base, which is people aged 25 to 40.
  • Adults who are tech-savvy — Their mobile app is popular and appeals to a group of people who are forward-thinking.
  • Their urban focus reveals the type of lifestyle they are catering to: working professionals.

Apple Target Market

How about a business that operates in both the B2B and B2C markets? How does it create a target market for such a diverse range of clients? Apple is the standard example of product innovation and design.

How, though, does that relate to identifying a target market? Apple offers a wide range of products, so there is something for everyone. Two of their target markets are listed below:

  • Technology enthusiasts continue to attract the company’s attention despite being the customer segment that launched Apple’s brand decades ago. Apple has demonstrated that it is still adding value for this market with the introduction of new tech categories (such as wearables, Apple TVs, and HomePods). Additionally, there is a fantastic ecosystem where having an Apple product suite makes your tech more compatible.
  • Healthcare is a market that Apple is focusing on. They’ve put healthcare workers in a better position to communicate with patients conveniently by emphasizing the appeal of having information at your fingertips with mobile and the iPad.

Even with similar products like the iPad, Apple doesn’t seem to exclude many people from its target market and has positioned itself to help both consumers and businesses.

Instead of excluding people from its various segments, its success has more to do with understanding the value of them.

White House Black Market target market

A name in women’s fashion is White House Black Market. On their website, they describe their ideal client as follows:

“Our customer… is strong yet subtle, contemporary yet classic, and diligent yet laid-back.”

When speaking with customers directly, that is a good description to use. However, a target market definition with a few more details is required by the marketing division. The former president of the business provided the following comprehensive target market information:

“Our target market consists primarily of working women [with a median age of about 45] who are in a very busy stage of life. She probably has one or two children left at home, or perhaps all of them have left and are heading off to college.

With the hashtag #WHBMPowerhouse, they target this important group of women in their 40s who have demanding home and professional lives.

McDonald’s Target Market

The target market for McDonald’s is huge and includes many different types of customers. One of the chain’s more important target market segments is younger professionals, and this trend is reflected in many of the company’s location remodels. A number of McDonald’s locations have been updated to look sleeker, more contemporary, and more appealing to millennials.

“Full nest” families with kids older than six are another important foundation for the chain. The chain makes a lot of efforts to win over this particular market, which is primarily evident in its Happy Meal selections.

However, there is one more element that underpins almost every target market that McDonald’s seeks to appeal to: social class. The chain deliberately aims to appeal to customers from the lower, working, and middle classes.

The foundation of McDonald’s value proposition is pricing. In the locations where it tries to sell, it positions itself as a more affordable alternative to more expensive options. For instance, the chain highlighted the McCafe line’s exceptionally low price points as a key selling point when advertising the product line.

In the end, the franchise’s target market isn’t singular and distinct in terms of the majority of demographics, but it is particular in terms of the financial situations of its various personas. The affordability of its food is the foundation of its value proposition.

Conclusion

Creating and perfecting a new product includes determining the target market.

A target market can be interpreted as the consumer profile most likely to be drawn by a given product. The demographic, geographic, psychographic, and behavioral characteristics of the person are taken into account in the profile.

Click on this link What Does a Market Research Agency Do to get more information.

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