Welcome to the latest edition of our new weekly blog series, Marketing Definitions. Each week, we will identify an oft-used term or phrase in the marketing community and break down its use and meaning for the broader population.
Last week’s term that we defined was Impressions.
Today’s Term = Target Market
A target market, broadly, is a group of people who are potential customers for your business.
In marketing, we talk a lot about targeting. Targeting is the art of identifying who is most likely to purchase a product or service, and showing advertising specifically meant to reach and affect those people.
Brands in general can have a target market. Each product a company offers can have its own, unique target market. And some products can have several different and unique target markets.
For example, a company like Verizon will have different target markets for its wireless phones and its Fios home internet service. And it’s internet service might have one target market of consumers and a separate one for businesses.
Target markets are important because they inform your strategy for marketing and growth. Without knowing who your potential customers are, you have no idea what to do to reach them.
A target market works best when it is as specific as possible. You may want to brag about how big your target market is because that means the sales potential for a product is bigger. But better to identify several, more specific markets within that broad category so that you can customize product features and marketing campaigns focused specific to one market or another.
In general, when we talk about target markets, we’re talking about who we want to sell to.
That does it for today’s definition. Have a term you’d like defined in a future post? Email us or post it in the comments below.