The market is the set of consumers who are buying the companys product

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Marketing

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  SWOT Analysis

  SWOT stands for 'Strengths, Weaknesses, Opportunities and Threats'. This is a method of analysis of the environment and the company's standing in it.

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  Top of the Mind Recall

  Top of the mind recall usually means the consumer is more aware, and hopefully, buys more of the product than alternative products when faced with a vast array of similar products.

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Definition: Target market is the end consumer to which the company wants to sell its end products too. Target marketing involves breaking down the entire market into various segments and planning marketing strategies accordingly for each segment to increase the market share.

Description: In simple words, not all products can be consumed by all customers and each product has a different set of consumers who want to purchase the product. In order to attract a particular segment of the market, the company at times, modifies the product accordingly. Creating the target market involves conceptualizing the product, understanding the need of the product in a market, studying its target audience etc. Target marketing would revolve around deploying marketing techniques for a particular segment of markets which could be key to attract new customers, expand business opportunities across geographies and expand distribution network to widen the reach.

There are various steps involved in defining the target market. The first is to understand the problem of a customer whom you are addressing. Once it is done, the customers can be identified who are interested in that product. For example, you make water purifiers – so you address the problem of contaminated water quality. We know that farm houses do not have a regular water connection and the water they get from underground is hard. So, there is a wide opportunity for water-purifier makers to enter into this segment and tap the market. The next step is to understand your customer according to the region, income level, etc. Always think about the market, know your competition and the pricing of the product. It will help you in creating a benchmark.

There are two important features, which the company should always consider before it decides to capture a separate market segment. First is the attractiveness of the segment, which means that it has less competition, high margin business etc. The second is that it falls in line with the company’s objective, vision etc.

• PREV DEFINITION

  SWOT Analysis

  SWOT stands for 'Strengths, Weaknesses, Opportunities and Threats'. This is a method of analysis of the environment and the company's standing in it.

  Read More

• NEXT DEFINITION

  Top of the Mind Recall

  Top of the mind recall usually means the consumer is more aware, and hopefully, buys more of the product than alternative products when faced with a vast array of similar products.

  Read More

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