Target Market Defined

A product or business target market is the specific group of people targeted by that product or business as likely customers. After a business determines its target market, it builds marketing plans and campaigns designed to get the maximum exposure with that particular group of likely customers. As businesses decide their target market, some of the factors they consider include the following:

Age

Marketing plans are designed to reach the most appropriate age groups for the product. The target market for toys might include both young children and their parents, while the target market for dentures is certainly in an elder age range.

Ethnic Gackground

Some products are marketed primarily to certain ethnic groups, like Spanish-language music or the Black Entertainment Television cable network.

Income Level

The target market for a high-end sports car probably only includes people whose annual incomes reach a certain minimum level, while the target market for a dollar store is made up of shoppers who don't earn quite as much money.

Education

Often tied to income level, many products are marketed primarily to customers with a certain level of education. One obvious example of this is an online university, who primarily markets to high school graduates without college degrees.

Psychographics

Moving beyond the demographics of the previous four entries, some businesses also use psychographics to create a more accurate target market. Psychographics include personal habits, preferences and desires, like how late you go to bed, how often you brush your teeth or how many tools you like to keep in your garage.

Business or Organization Type

Of course, not all products are sold directly to ordinary consumers, and businesses take that into account while developing target markets, too. A business that sells retail displays and shelving, for instance, would likely include big-box and other retail stores as its primary target market.