A target market identification is that process of market planning where you target those peoples or groups of customers who will be going to buy your goods and services or we can say it is a process of choosing customers from the group of peoples who will use and purchase your services and goods. These customers will directly focus on the company’s marketing strategies.
A target market is just like the total types of competitors in the market who provide goods and services in the market which same as yours. Customers are having buying power, incomes, adjusting the price of items, and many more types of characteristics which needs in the target market. Identification of customers is very important for the target market while doing marketing planning of the goods and services. If a company is not aware of whom they are targeting and planning is not there then their money and time of the company will be at loss.
- A target market is that where to whom a company whats to sell there goods and services.
- Customers are having buying power, money, an adjustment in the price of items and many more thing comes under target market characteristics.
- If a company is not aware of the target customer or group of people then there will waste of efforts and money.
- Every identification needs the proper planning and strategy.
4 Utilities of Target Market Identification
- Target Market Plan:If you are aware of your customer’s type, nature and taste then you can adjust the product price, and strategies of the distribution process so the quick and easy customer can get the product when they need it.
- Helps you choose the right marketing location: With a target market, if you identify your customers then you can promote your products or services according to customers where they can see your product and reach there to buy the product. Also, you can channel the platform on which you want to advertise the product so that your target customers see the product.
- Fewer resources: It’s not good to promote your product in a narrower market or too crowded places. These types of places not only waste your time, money, and effort. It’s good to promote products in those markets where peoples are like your product and want to buy the product.
- Sales and profits: Target market identification helps reach the target audience. But also, it helps to increase the sales of the products and increase the profitability of the company. It will help you to take you from the bottom line to the upper line in the listing.
How to do the Identification of the Target Market
These are the steps for the identification of the target market:
- Write about products characteristics: Make a list of your products with their benefits and features which will come with your services. Write all the benefits, why to use your product, ingredients, and much more things.
- Why customers would buy your Product: Also, write the reason why customers would buy your product, not others. What makes your product so unique from others.
- Specify product Dimensions: You need to figure out the relevant product dimension and segments. Whether you are targeting a large market or a small market. Also list out which type of customers you are targeting, which age group, their sex, their class, and many more thing. Also, list out at which season a customer
- Set the market according to product criteria: You need to set the criteria according to your product specification. To whom you are targeting and specify the gender of the customer and the age and type.
- Profitable target market: You need to specify the volubility of your product and also specify the financial resources of your company. Profitability is the main reason for every company. How much they get from the product? Every target market is having its own competitors and its specific. You need to concentrate on only one segment and target market.
2 Frequently Asked Questions
What is an example of a target market?
If your firm or company is making a health care product and you work on it to channelize the distribution process. If you planning to sell the product to the primary consumers then your product will sell and also you need to specify the target market customers’ age. Then advertise the products according to the reach of customers on newspapers, websites, etc. so that your product will reach the set audience.
What is the purpose of target markets?
Target markets are used to understand the company’s current and future consumer nature. Once your target market is set, it can reset the product’s price, promotion, and distribution. if your target market identification is right then your production will be high and your profit will be more. The target groups may be useful when you are planning to expand your business and its operations to an international market.