Target Market

A target Market refers to a situation where a business targets a group of customers to whom it wishes to sell goods and services. This group of customers also include specific customers to whom the business is trying to reach out with marketing efforts. The target market is a part of the total market.

Businesses need a lot of time and effort to identify the target market because the profit margin of the business largely depends on the same. It is also important for a business to identify the target market because not every customer needs what the business has to offer.

Target markets are categorised by location, Income, age or lifestyle. a business will have to test its target market even before a service or a product is released. When the testing phase takes place, the business could focus on groups. This will help product managers to understand what about the products stand as the strongest element. Once the products are released, the company can keep up with the consumer demands by sales tracking, marketing efforts, etc.

If the business does not take the time to understand the target market, it could cause huge losses.

Types of Target Market

Target market is based on market segmentation. The top types are mentioned below:

1. Age

The target market is based on the age of the consumer. For example, an apparel company would manufacture products based on the target customer's age group.

2. Race

Taking the race of the individual is important when you are a global business company. This is because the needs of an American could be different from that of an Indian. Research and development are required to understand the target market here.

3. Gender

Gender is also a huge element when it comes to deciding the nature of your business and the target market you have. For example, a sports company could cater to one particular gender or all genders.

4. Religion

Religion also plays a vital role in business target marketing since you will have to cater to various different religions.

5. Income

This is probably the most important aspect to consider in target market type. Your target customer's income decides your product value.