‘Target market’ is a commonly known phrase used on a daily basis within the business world. A lot of the time it can be strikingly obvious what a target market is. This is often the case for captive markets, such as textbooks for specific courses at universities. When a law student needs a law textbook they form a very specific market. Another case is when a company makes accessories for their product, the target market for those accessories are the people who make up that original user base. In other cases, it is not as clear cut what a target market is for many businesses, which can have negative impacts on companies in terms of marketing strategies and overall sales.
A target market is simply the market for which your product is relevant. Understanding your target market is definitely a case of easier said than done, as understanding who is interested in your products and how to appeal to them can be a complex task.
If you are finding it hard to distinguish your own specific target market then using principles such as market segmentation may be beneficial. In short, this helps look at all potential consumers of your product/service and then shows different demographics into which these potential customers lie. This can show that some groups over the other are more inclined to your product or service. This means that the marketing of your product/service can now be tailored to allow it to reach its desired audience, rather than wasting marketing on those that market segmentation will show are not particularly likely potential customers.
Part of market segmentation is also market mapping. This looks at all available offerings currently in a market, then it sees how both distinctive a certain brand is and how well known a brand is. These two distinctions can become axis of a graph and companies can be placed accordingly. This can help see specifically where your company lies, can help show your immediate competition and potential gaps in the market (which will be seen quite literally within the graph).
If we combine these two types of information, of knowing your audience’s opinions of your products, and gaps in the market, then we can see potential new ground for a business to expand into. Thus, we have a system that shows your potential target market, and where a business can expand to capture a new already mapped out target market that is known to be there due to due diligence in research.