In simpler words, target market consists of like-minded individuals for whom an organization can afford to have similar strategies, promotional schemes, and advertisements to entice them and prompt them to purchase the product. Once a company decides on its target audience, it implements various promotional strategies to make a brand popular amongst them.
Targeting a specific market does not mean that you are excluding people who do not fit your criteria. Rather, target marketing allows you to focus your marketing dollars and brand message on a specific market that is more likely to buy from you than other markets. This is a much more affordable, efficient, and effective way to reach potential clients and generate business.
What Information Do You Use to Target a Market?
- Demographic variables — Age, gender, income, ethnicity, marital status, education, occupation, household size, the length of residence, type of residence, etc.
- Geographic variables — City, state, zip code, census tract, county, region, metropolitan or rural location, population density, climate, etc.
- Psychographic variables — Attitudes, lifestyle, hobbies, risk aversion, personality traits, leadership traits, magazines read, television programs watched, PRIZM clusters, etc.
- Behavioral variables — Brand loyalty, usage level, benefits sought, distribution channels used, reaction to marketing factors, etc.