A target market is the group of people you want market your product or service to. Location, income, age, and occupation are just a few of the demographics that can make up a target market. The key is finding the perfect group to market to. If you try to reach out to a broad target market, you risk marketing to the wrong people. Not everyone is going to be interested in your product or service. If your target market is too defined, you may end up handicapping your marketing campaign by not reaching enough people. You need to find the perfect balance.
Target by Age
Categories include households with newborns, toddlers, tweens, millennials, adults, baby boomers, seniors. etc. You can target whatever age group you want to. Just be aware that if you are going to market to minors, it will be the parent of the minor you will need to be addressing.
Target by Geography
Geographic options include markets such as countries, states/provinces, cities, zip codes/postal codes, counties and neighborhoods. Whether you are marketing your product or service to a small local area or nationwide, targeting your campaign geographically will significantly increase results.
Target by Income/Net Worth
People across different incomes have different needs and different budgets. Perhaps you want to only sell a few items but charge a lot for them, or maybe you want to sell a lot of items at a low price. You might target consumers by their annual incomes, by their net worth or even the value of their home.
Target by Marital Status/Family Makeup
Some households have big families; some have small ones. Some are married; some are divorced. Some have young children or multi generations living with them; some are single consumers living alone. Each household has different needs.
There are many so more targets to market to. Other segments include travelers, risk-takers, home owners, renters, car owners, brides, students and computer owners. You can also chose a segment according to education level, ethnicity or occupation. The possibilities are endless. You have to ask yourself who is most likely to buy from you.
With the current state of the economy, having a well-defined target market is more important than ever. No one can afford to target everyone. By targeting their direct marketing campaign correctly, small businesses can effectively compete with large companies.
Targeting a specific market 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.
With a clearly defined target audience, it is much easier to determine where and how to market your product or services. Which target market is right for you?