What is target marketing?
Target market refers to the buyers for whom the product or service is aimed. A target market first is covered in broader aspects like healthcare, travel, technology, etc.. It is created based on a group of people who share the same characteristics like behavioural tendencies, geographic location, and demographic characteristics.
Companies use target markets to thoroughly understand their potential customers and craft marketing strategies that help them meet their business and marketing objectives.
Identifying the target customers is an integral part of any new business undertaking, whether at a Fortune 500 company or a soon-to-be-launched small business.
Target Marketing Definition
A group of people that have been identified as the most likely potential customers for a product because of their shared characteristics, such as age, income, and lifestyle is referred to as the target market.
Target Market Segmentation
There are four different types of market segmentation. Let’s illustrate everything about all the different market segments:
Demographic
Classification of people based on their age group, income level, gender, occupation, and education level.
Geographic
This segment is increasingly relevant in the era of globalization. Regional preferences need to be taken into account.
Psychographic
This segment goes beyond the basics of demographics to consider lifestyle, attitudes, interests, and values.
Behavioural
This is the one segment that relies on research into the decisions of a company’s current customers. New products may be introduced based on research into the proven appeal of past products.
Target Marketing Strategies
Target marketing strategies are business plans which businesses finalise to grow their sales & brand awareness within a specific group of consumers.
To do this, businesses strategize based on demographics that make up a market, which is an area or group specified for product sales. Target markets represent the opportunity for new business and increased sales.
Mass Marketing
Mass marketing does not separate the target market from the other customers, only one marketing strategy is used for the entire market. It aims to reach the maximum number of buyers so that the product can have the maximum exposure.
To make the mass marketing target marketing strategy successful through national television, radio and print ad campaigns, and so on.
There are mostly staples or commodity items under mass marketing strategies and brands have a very strong influence in the market.
Differentiated Marketing
In this strategy company separates the customers into small target groups based on offers and different promotions for different target groups. Also known as multisegment marketing.
It focuses on targeting different groups based on offering unique offers or benefits. Groups are differentiated based on gender, age, skin tone, etc.
The aim is to maximise the market share by luring the customers from established brands. To establish such a situation companies address the specific needs of a market sector.
Niche Marketing
In niche target marketing strategies companies target only a few specific groups of consumers. First company finalises its brand image and then narrows down its target market. Instead of serving the big markets, it only focuses on a very small group of people.
Mostly small companies or start-ups who do not have big budgets opt for this strategy. Because targeting a small group will not take a massive advertising or promotion cost.
Since the group is so small if the demand falls, the company may not be able to survive the financial situation.
Micro Marketing
It is smaller than a niche marketing strategy, it is also known as mass customization or one-to-one marketing, this strategy depends on the customization needs of its target market. The customers specify their wants, and the company tries to serve the requested product.
Target Marketing Examples
Here are a few examples of how different businesses can create a strategy for their target market.
Target market for a fashion boutique
Lovely Dresses is a fashion boutique in a populous city. It has a small showroom and offers a personal shopper to help customers select customized items. Purchases are then made to order and fitted to each buyer. Because of their high level of service and attention to detail, their products are costly.
Target marketing for home services and home improvement
Customers may be interested in home improvement or renovation shows on HGTV.
May live in suburban areas. May spend time with family, taking kids to school or activities, and trying DIY home improvement projects on the weekends. 50% women, 50% men & 86% are homeowners.
Target market for a sandwich shop
Speedy Subs is a sandwich shop adjacent to a gas station in a suburban town. Because it is close to the highway, Speedy Subs expects many of its customers will be travelling. It defines its target market as adults with low to moderate incomes looking for a fast but filling meal. They use their billboard to advertise low prices and package deals, and their marketing features race cars to emphasize their quick service.
Target market for a photography studio
Everybody Smile is a photography studio in a suburban town that specializes in family portraits. Their target market includes adults with children looking for professional photos to display at home and send to their friends and family. Because the customer in this target market sees the photography session as a special event and is very hopeful about getting a good result, Everybody Smile offers personalized packages and a satisfaction guarantee.
Steps to define your target market
Without a clear target market, you have to rely on “spray and pray” marketing. You don’t have a specific audience in mind, so you create a lot of content, publish randomly, and pray that something in your content catches the attention of the right people.
Identify Existing Ideal Customers and List Their Characteristics
Step 1 is to define the ideal customer and their characteristics, you can simply list your current customers and use their information to start giving your target market some specific characteristics. Here are some prompts to help you gather the right information:
- Their age.
- Their civic status.
- Their career status.
- Their hobbies.
- Their problems.
- Their passions.
- Their daily routine.
- Who they influence.
- Who influences them.
- Why they love shopping with you.
Identify the Problems You Solve and the People Who Benefit the Most From Your Solution
People don’t buy products or software for the sake of buying things. They buy products or software because they have a problem that they need to solve. Identifying the problems you solve and how you can make your users feel better will give you a good idea of who will want—and pay for—your help.
Start figuring out your product’s primary value-add by naming the features and benefits of your product.
Evaluate Your Data and Create Your Target Market Draft
Once you get enough data to evaluate, then it’s time to evaluate how the previous learnings apply to the market. Here are a few questions to ask:
- How do I find and reach the people in my defined target audience?
- Is my product in their price range?
- Does my defined target audience have the problems that I listed?
Compare Your Target Market Draft Against Real People
Now that you have a list of target markets, look for some people on social media who fit the profile. Doing so will tell you if your profiles are too broad or too specific. If you find too many people, your profiles are probably too broad. On the flip side, if you don’t find enough people who fit your description, your profiles are too specific.
Build Your Target Market Personas
Now it’s time to build your target market personas. Based on your research, create imaginary people that belong to your target market so that you can create marketing content for specific people—people with names, hobbies, and stories, even if all of those are made up.