Targeting Consumers promoting and selling

The aim of this lesson is to familiarise you with what a target market is, why it is important for a business and how they come up with a target market.

What are 'target markets?'

Businesses aim their products to a certain group of consumers within the total population. They pinpoint their ideal customer, find out how many consumers fit this description, and focus their marketing activities towards consumers who are most likely to buy a certain product.

This process of 'sifting through' the total population is called market segmentation.

Markets and Market Segmentation

A target market is a group of consumers that is potentially interested in a product, has the resources to purchase a product, and is legally permitted to use or consume a product.

Once it has clearly defined its target market. A business needs to sort through the total population of a region, country, city, or even the global population in order to work out the total number of consumers that it can market to, and increase the number of consumers who actually purchase their product.

The Different Ways of Segmenting a Market

There are three main ways of segmenting the total population of a market to come up with a target market:

1. Demographic Factors (age, gender, income)

2. Geographic Factors (location)

3. Psychographic Factors (personality factors, social / religious beliefs, lifestyle factors).

Scroll down to find out more.

Demographic Factors: Businesses can segment a market by looking through an appropriate age range, gender and income level.

For example, Barbies can be aimed at 3-8 year old females, and their 30-50 year old parents, from a middle class family.

Geographic Factors: Businesses can segment the total population based on a consumer's location. For example, McDonald's tailors its menu to different consumers in different countries.

Personality Factors: The last way a business can segment the total population is through personality factors. These factors can include one's personality, social beliefs or lifestyle. Fitness and diet-related companies use this factor to come up with the target market for their products (e.g. a different product for those new to fitness, and a more high-performance product for elite athletes).

Questions:

1. Define what a target market is.

2. Why is defining a clear target market important for a business?

3. What is market segmentation?

4. Describe the three different ways of segmenting a market.

Created By
Ryan Balboa
Appreciate

Credits:

Created with images by GoldMoneyNews - "Customers talking to a Relationship Manager during the Edelmetallmesse" • Pexels - "food ingredients market" • TusitaStudio - "hand united hands united" • JeepersMedia - "McDonald's" • skeeze - "runner marathon military"

Made with Adobe Slate

Make your words and images move.

Get Slate

Report Abuse

If you feel that this video content violates the Adobe Terms of Use, you may report this content by filling out this quick form.

To report a Copyright Violation, please follow Section 17 in the Terms of Use.