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Identifying the
Target Market
Target Market
Definition: A specific group of consumers at which a company aims its products and
services
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Mass Market
Treats the market as a homogenous group.
› Allows economies of scale
› People aren’t all alike and not everyone wants the same things.
Target Market
Target those MOST LIKELY to buy from you.
Avoid “scattering” your focus –
› 1 bullet dead center is better than 10 fired at random!
Target Market
Make it as detailed as you can
Ask other people what they think, too! The more perspective you gain, the better.
Target Market Shortcut
What are the benefits (strengths) of my product or service
› Make a list!
Who needs those benefits?
Target Market
Male or female or both?
Age range?
Where do they live? Does it matter?
What do they do for a living?
How much money do they make? (range)
What else is specific to your product or service?
Target Market
What do they like to do for fun? Hobbies?
What are their lifestyle preferences? Luxury, “Green,” Urban, Rural, etc.?
What do you think they are looking for from life?
Generational Marketing
Divide by age.
Used to work great; now, one 64-year-old retiree travels around in a Winnebago while
another 64-year-old man is newly married with a baby.
Cohort Marketing
Divide by the EXPERIENCES people have during their formative years, as well as age.
People who grew up in the 50s may seem about the same age group/position in life as
those who grew up in the 60s, but are actually very different.
Life Stages
What are people doing at this time?
› Going to school
› Working
› Raising a family
› Retired
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May be a lot of different ages represented.
Demographics
This description creates your DEMOGRAPHIC – a description of a group of people that are
similar in particular ways.
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Example: Women business owners between the ages of 25 and 40 earning more than
$25,000 annually
Bad Target Market Definitions
Most of the population
Women
Teenagers
People who live around here
Target Market
The smaller your market, the more likely you are to make a direct hit!
Target Market
A survey created to measure the motivations people have as consumers:
http://www.sric-bi.com/VALS/presurvey.shtml
Please take the survey and then answer these questions:
What two groups did it identify for you?
How well do you feel you fit into those groups?
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