A good target market ensures that your product will find its place in the market. 🛍️ That’s why targeting and defining the profiles of your “buyer personas” is essential for your business. Let’s find out together how to succeed in your targeting in this article! ⚡
Target Market Meaning in Business Plan: Definitions of Positioning and Segmentation
What are the different types of target market?
Next, we will take a closer look at the different types of targeting, 🔍 you will find the definitions below.
💡 Here is an infographic on the steps of marketing targeting:
- Market Segmentation,
- Target Market,
- Product Positioning.
Let’s go into more detail! 👇
Def Target Market:
The definition of target market means selecting market segments, for which conscious consumers have expressed expectations, that companies can satisfy through the products and/or services it markets. Targeting is the last step of the strategic approach, it is done after segmenting the market and before determining its location. 📌 It is a question that identifies the consumer groups most interested in the product and how it differentiates it from competing products. 🧐
In addition, targeting allows a company to identify the market segments it wants to reach and shape its marketing strategy. Effective targeting prevents the company from focusing on segments with low profitability potential (“ROI”). 🤑 By focusing on typical customer profiles or “personas,” the company concentrates its resources and efforts on the expectations expressed by these segments.
👉 Note, that the choice of a targeting strategy depends on the company’s objectives, its resources and its current position in the market.
Target Market Segmentation:
In marketing, the market is referred to as segmentation, as it is broken down into sub-categories, to define the profile of the target consumer. These segments are defined by the targeted product and the type of potential customers. A strategic segmentation allows you to target consumer segments likely to be interested in your product and position yourself in those specific markets. 🏹 The segmentation criteria will depend on the specifics of the primary target market and consumer behavior. They are studied according to various characteristics (age, gender, work, purchasing power, etc.), collected during market research. 🤓
👉 You can also use a lead scoring method to refine the analysis based on past orders placed on your website, for example.
In general, positioning refers to the position of a product/brand in the eyes of consumers, compared to similar and/or competing products. The product’s price, its characteristics, the brand’s image have an influence on the product’s positioning. 🎯 The term can also be defined from a business perspective. It then specifies the position that the company seeks to achieve for one of its products or services. The goal here is to present a product in a way that sets it apart from the competition.
👉 In both cases, positioning is an integral part of the “marketing mix”. It is often associated with media actions to promote and highlight the products/services.
What is an Example of a Target Market?
How to do a good target market strategy?
Furthermore, we can identify 3 strategies to make a good market targeting: 👇
- Differentiated targeting marketing: a product is intended for a segment. By offering a product whose characteristics perfectly match the expectations of the target segment, the company ensures a perfect match between supply and demand. 🧲 Be careful, not to address too small a segment when you do differentiation marketing.
- Mass marketing: a product that targets multiple segments. When several typical consumer profiles share certain interests, the company may choose to offer something that meets the common needs of these different segments. Mass marketing is usually based on lower supply costs rather than differentiated product features. Examples include “hard discount” stores that attract many types of customer profiles, such as Lidl or ManoMano in France. 💪 However, pay attention to market changes, when marketers do mass marketing their offer needs to match the current needs.
- Multi-segment marketing: Several products each addressing a segment. To cover the market as much as possible, the company can propose differentiated offers according to the expectations of each segment. We can take the example of car manufacturers offering compact vehicles, utility vehicles, sedans, 4×4, etc. 🚗 Attention, to develop a very precise marketing strategy to succeed in multi-segment marketing.
Target Market Examples
Businesses define their target market in order to understand who they are selling to and how to reach those people through marketing efforts. In practice, any product or service on the market today may be considered to be aimed at a certain niche market segment. 🎯
Various criteria, such as common demographic attributes or qualities, might define a target market. 🧐 The following are some examples of target markets and items that may be promoted within them:
- An action figure aimed towards boys aged 9 to 14. 🧸
- A pair of vegan running shoes made from recyclable materials aimed towards environmentally aware athletes aged 24-45. 🏃
- A high-end, direct-to-door meal box provider aimed for busy professionals with disposable income aged 30-45. 🍜
Targeting Criteria Based on Demographic Segmentation
Demographic segmentation categorizes customers based on certain characteristics such as age or economic level. 📊 Using typical data collecting methods, demographic segmentation provides a peek of customers as genuine individuals in the real world. This segmentation is typically utilized for business-to-customer (B2C) marketing initiatives. 🤝
Typical characteristics to consider during demographic segmentation are:
- Age group,
- Gender identity,
- Sexual preference,
- Income range,
- Household size,
- Education level,
- Geographical location.
💡 That’s just some criteria you can use ! Make sure to personalize this list depending on the ideal prospects you have in mind. 🧠
Conclusion: How to Successfully Target your Customer Audience? Use The Right Tools!
Finally, to succeed in your customer targeting, it is imperative to ask yourself the following questions about your target market 👇
- Segment Attractiveness: Is the segment size and potential profitability sufficient?
- Competition: What is the positioning of other players in this segment? Are they numerous?
- Suppliers: Are there enough competitive suppliers to have relatively low production costs?
- Cost of entry: Does entering the market in the desired segment require a significant financial investment?
Based on the answers to these questions, the company must determine the segments it will target. For example, a company may choose from a broad target, offering its offering to a segment with established competitors, but with high profit potential. 💹 Or conversely, the company can target a smaller segment, but with low competition.
In addition, your company can use some analytical tools to define its marketing targeting 👇
- The SWOT Matrix, which is based on the internal and external diagnosis of the company.
- Use the PESTEL analysis, to identify and measure the strength of external factors influencing the market.
💡 Pro tip: If you really want to boost your B2B lead research and succeed in making a good segmentation, then use the CRM Waalaxy 👽(automation tool) to create lead lists by segment, using the advanced filters! 🚀Discover Waalaxy 🪐
FAQ: Target Market Segment
What is your target market?
In marketing, targeting customers is the process of selecting the market segments that a company decides to target to sell its products. This phase of the strategic process comes after the phase of segmenting your prospect list, to evaluate and categorize the “target market” or the “targeting market” (synonym). 🎣
👉 It leads to finding a marketing positioning that is conducive to promoting your company’s products in your prospecting campaigns.
What are the 3 target markets?
To recap, the 3 target market strategies are: 👇
- Differentiated targeting marketing: a product is aimed at a segment. By offering a product whose characteristics correspond perfectly to the expectations of the target segment, the company ensures a perfect match between supply and demand.
- Mass marketing: a product that targets several segments. When many typical consumer profiles share certain interests, the company can choose to propose an offer that meets the common needs of these different segments.
- Multi-segment marketing: Several products each addressing a segment. To cover the market as much as possible, the company can suggest differentiated offers according to the expectations of each segment.
How to Define a Product Target Market?
Part of creating a new product is envisioning the consumers who will want it. 😏
A new product must meet a need, address a problem, or do both. That “need” or “issue” is probably not universal unless it reaches the level of indoor plumbing. It is most likely that a wide segment of customers need it, such as ecologically conscientious vegetarians, scientific geeks, or outdoor lovers, etc. 🌱
Envisioning your likely target market is part of the product development process and influences decisions about packaging, marketing, and placement. 🛒
Perfect! Now you know how a specific target market works, right? 😉