Target Market: Definition, Purpose, Examples

A business’s target market is the demographic it focuses its product promotion and distribution efforts.

Target markets are used by businesses to gain a comprehensive understanding of their potential customers and develop effective marketing strategies that will allow them to achieve their business and marketing goals.

Target Market: Definition, Purpose, Examples

Whether you’re a Fortune 500 company or a startup with a big idea, figuring out who you’re selling to is crucial. The key to success is identifying your ideal customer.

The importance of target markets, real-world instances of them in action, their definition via segmentation, and the many marketing approaches taken to reach them will all be discussed in this article.

Here you will find a list of resources to use in your next marketing campaign and subsequent actions and suggested courses to take.

How Target Marketing Works

The beauty of target marketing is that it simplifies and reduces the expense of advertising, pricing, and distributing a product or service by narrowing the focus to a specific subset of consumers.

Consider the case of a catering company that offers in-home catering. The caterer would determine its ideal clientele rather than casting a wide net with a newspaper insert.

It could then increase its return on investment in marketing and attract more customers by targeting the desired market with a direct mail campaign, flyer delivery in a specific residential area, or a Facebook ad aimed at customers in a specific location.

Facebook, LinkedIn, Twitter, and Instagram are just a few social media sites offering in-depth targeting options for businesses to reach specific customer demographics.

For example, a bed and breakfast could advertise a weekend getaway package to their married Facebook followers.

LinkedIn, on the other hand, has a stronger business-to-business focus, allowing you to narrow your focus based on a company’s size, industry, location, and other factors.

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Market segmentation can be approached from various angles, with demographic, regional, and psychographic constituting the most prevalent varieties.

How Do I Define My Product’s Target Market?

Identifying potential buyers is an essential part of developing a new product.

A successful new product will address either an unmet need or an existing problem.

Unless it involves something as commonplace as indoor plumbing, that need or problem is probably not universal.

It’s more likely that a specific demographic of buyers require it, like vegetarians concerned about the environment, nerdy scientists, or people who enjoy spending time in the great outdoors.

Anyone from a young person to a middle-aged professional, from a thrifty shopper to a snobby elite, might find something to like.

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Decisions about a product’s packaging, marketing strategy, and distribution benefit from a clear picture of the demographic that will most likely buy it.

What Are the 4 Target Markets?

Consumers are broken down into four groups by marketers:


These are the essential traits of your ideal customer. People can be classified according to their ages, incomes, genders, professions, and levels of education.


In this age of globalization, this subset is more important than ever. The tastes of different regions must be taken into account.


In this analysis, we take into account a person’s demographics, way of life, attitudes, interests, and values.


This is the one area where analyzing the preferences of existing clients is essential. There is a possibility of introducing new products based on an analysis of their famous history.

Target market vs. target audience

The terms “target market” and “target audience” are sometimes used synonymously. The terms may sound alike, but they describe different categories of people.

A company’s target market is the specific demographic it aims to reach with its advertising. Meanwhile, a company’s target audience is a narrow segment of the target market that it hopes to attract with its marketing.

For the sake of argument, let’s say that a tech firm has created a smartwatch that can make and receive phone calls, read and respond to texts, launch applications, monitor the wearer’s heart rate and step count, and so on.

Despite the watch’s broad appeal (the target market), the manufacturer may decide to run an ad campaign directed specifically at older, health-conscious consumers by highlighting the watch’s health features. These seniors who are concerned about their health represent a potential target audience.

Target market strategies

You can reach your intended audiences by employing several marketing approaches. The typical method of organizing these tactics is to go from the most generalized to the specifics of their intended audience. The specific approach you take will depend heavily on your target audience.

Four of the most prominent methods of reaching your target audience are discussed below.

Mass marketing

In contrast to niche marketing, mass marketing aims its advertisements at the largest possible audience. In contrast to more targeted forms of advertising, mass marketing targets the entire market with a single, unified campaign.

Businesses peddling broadly appealing goods and services benefit the most from mass marketing. Gas and telecom providers and salt and sugar producers target the masses exclusively with their advertising because virtually everyone uses their products.

Differentiated marketing

A company develops special promotional efforts using differentiated marketing to reach its various customer subsets. Businesses can improve the effectiveness of their marketing strategy by targeting specific audiences with tailored messaging in each of their marketing campaigns.

Businesses need to allocate more resources to developing unique marketing campaigns if they want to use differentiated marketing to connect with a wide range of customer subsets. Businesses selling to a market segmented into distinct customer subsets will succeed wildly with a differentiated marketing strategy.

Niche marketing

In niche marketing, a company zeroes in on a small, specific subset of the overall consumer population as its sole focus. Therefore, niche marketing frequently focuses on empty spaces in the market where certain customers’ needs are not being met.

By zeroing in on a specific subset of consumers, businesses can tailor their marketing efforts more precisely. In turn, this works well for startups that want to break into a competitive market that still has room for improvement in a few key areas.


“micromarketing” refers to a marketing technique focusing on reaching a small but dedicated audience within a larger niche market. Typically, a micro-marketing campaign’s intended audience is segmented according to age, occupation, location, and gender.

Because it is aimed at such a small demographic, Micromarketing can be more expensive than general forms of advertising. So, micromarketing is most effective when the potential payoff justifies the time and resources it may take to reach the intended audience.


When developing a product, it’s essential first to determine who will be interested in buying it.

The target market for a product is the group of people who are most likely to buy that product. The profile considers demographic, geographical, psychological, and behavioral factors.

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