What is target marketing?
Target marketing involves dividing your total market into segments and focusing your marketing efforts on one or more of these segments.
Target marketing helps your company select and concentrate your marketing and sales efforts where they deliver the best possible return.
What is a Target Market? DefinitionA target market is a specific group of potential customers that a company wishes to sell its product or service to. A target market is therefore a selected portion of the total market.
Why work with target marketing and target markets?
The value of working with target marketing and target markets is clear. A focused effort where you don't "just" cast a wide net, but instead concentrate your efforts where the return is greatest and delivers the best ROI (return on investment).
With target marketing, you focus your marketing on specific segments of the market, which means you can target your marketing, pricing, messaging, etc. to exactly that specific part of the market. This not only improves results, but also makes your efforts more cost-effective.
Market segmentation
When working with target marketing, you need to identify and select the parts of the market that are most attractive and profitable for your business.
You must therefore segment the market and identify your target market based on selected and relevant segmentation criteria for your business.
Typical segmentation criteria include:
- Demographics: Gender, age, income, education, religion, etc.
- Geography: City, country, region, etc.
- Psychographics: Social status, preferences, loyalty, etc.
