What is a target market?
A target market is a specific group of people with shared characteristics, who are likely to benefit from your offering.
What is the purpose of a target market?
The purpose of a target market is to improve the efficiency of your product development and marketing efforts.
Why is identifying your target marketing important for corporate innovation?
Identifying your target marketing is important for corporate innovation because you likely have limited resources and need to use them wisely. By focusing on a clearly defined section of the market, you can design your offering to meet their specific needs, understand the best features to highlight, and determine the right price, marketing channels and sales channels to meet that specific segment.
How do you define your target market?
You can define your target market by: 1) identifying the benefits that your offering provides, 2) identifying who will benefit most and grouping them according to similarly demographic, geographic, and/or psychographic characteristics, 3) developing personas to represent each grouping, and 4) assess the viability of the segment- is it big enough, are they willing to pay, are they accessible, what are the competitive dynamics?
Can a corporation have more than one target market?
A corporation can have more than one target market. Some firms sell the same product to more than one segment, while others offer multiple product lines to appeal to specific segments.
What is the difference between target market and target audience?
The difference between a target market and a target audience is that the target market is the end consumer, while the target audience is who your brand should focus on when advertising. Your target audience may be broader than your target market if you are trying to reach potential customers outside your normal base.
What are some examples of corporations who have successfully defined their target market?
Some examples of corporations who have successfully defined their target market include Target, who focus on hipsters and fashion-forward Gen Z’ers by offering trendy home decor and apparel, and conveniently locates Starbucks inside many stores. Another example is McDonalds, which targets low-income families by offering cheap, tasty fast food, with healthy options.