Target Market and Target Audience
What They Are, And How They Can Lead Your Business to Success
The most important factor in determining whether your business is successful is its ability to sell its products and services. The best way to do that is to market it in ways that draw in the people who will want it the most. You can’t do that if you don’t know who you need to market to. In this article, we’re going to go over what target markets and audiences are, how you can determine yours, and how you can maintain accurate information to make sure you’re marketing stays directed at who is going to want what your business has to offer, even as markets and trends change.
Defining your target market, according to Sender, can grant your business these great advantages:
“Improved Marketing Messages. The better you understand your prospects, the better you can talk to them in a language they understand. Your marketing speaks to their pain points and concerns directly. This leads to more relatability and, ultimately, higher customer loyalty.
Better ROAS Due To Focused Ad Targeting. Laser-targeted ads for target audiences are guaranteed to convert better, leading to higher returns on ad spending for your eCommerce stores.
Higher Conversions Over Email Marketing. Once you nail your “Customer Avatar” or “Buyer Persona” down, your emails will register increased open rates, higher deliverability, and increased replies and conversions.
Stand Out From Competition. Audience definition improves your personalization efforts. This will help you become more relatable and stand out from the competition, as 76% of consumers love buying from businesses that personalize their marketing efforts.”
What is a Target Market?
Your target market is the broad group of people who would be interested in your business’s products and services.
What is a Target Audience?
Your target audience is the group that would benefit the most and be the most interested in your specific products and services.
Target Market Vs. Target Audience: What’s the Difference?
The definitions sound incredibly similar for both “target market” and “target audience,” and many use the terms interchangeably, but they’re actually different things by definition. “Target market” is broader, while “target audience” is more specific. Here’s an example:
Let's say your business is selling cooking appliances and supplies. Your target market might be people who love to cook in general, but you could have multiple target audiences, like those who like to bake pastries and need things like cupcake pans, cookie cutters, ovens, and cooling racks, and those who love to grill who would need charcoal, wood pellets, smokers, grill covers, and carving knives. They all fall under the umbrella of cooking appliances and supplies, but have two different audiences.
For more information on what makes these two different from each other, check out this article on Indeed.
What is the Purpose of A Target Market?
The main purpose of a target market is to help you figure out who your product is for. If you can figure out who you’re trying to reach with your products and services, you can find out how to improve your products and services to meet the needs of those you’re selling to.
Some examples that Semrush uses are:
“Estée Lauder sells its Re-Nutriv Ultra Diamond Transformative Energy Crème for $435. The product contains black diamond truffle extract and 24-carat gold South Sea pearls. Its target market has disposable income and is interested in a luxury experience.
OSEA’s vegan, cruelty-free, and sustainably packaged Anti-Aging Balm, retailing for $84, targets a market concerned with environmental safety.
Lastly, Olay’s Retinol 24 Night Face Moisturizer retails for $29.99 at most pharmacies. Seeking to attract a market that is mindful of cost and convenience.”
They are all anti-aging creams being marketed, but each one is trying to reach a different audience from the others within the skincare market. They discovered what their markets were looking for in a skincare product and built their products around those values to help with their marketing and sell more.
Can My Business Have More Than One Target Market?
Yes. It is very common for businesses to have multiple target markets. Clothing stores, for example, can have different styles and options for different demographics. The kids' section might have bright-colored clothes with fun designs to get the attention of children, but they may also have a business casual section with simple blouses, pants, jackets, and slacks for adults wanting a more professional style.
How to Identify Your Target Market(s)
Many different factors go into determining who makes up your target market.
First, find out what the demographic of your target market is. Some demographics that are part of determining your target audience, according to PennState Extension, are:
Age
Gender
Ethnicity
Education
Occupation
Income
Family Status
Some more aspects to keep in mind are your target market's thoughts, opinions, habits, and beliefs. Some examples are:
What is their lifestyle?
What are their interests?
Do they have existing opinions about your business and products?
What do they want to gain from your product that they are missing from competitors?
How do they get the information they use to base their buying decisions?
Getting answers to these questions, and a number of others you can ask, can help you find out who you should be marketing your products to and what you need to do to them to make people want them.
For more information on how to find your target markets, check out these articles:
What Is A Target Audience And How Do You Find It
How to Find Your Target Audience
How To Identify Your Business’ Target Audience
How to Identify Your Target Market
Why Identifying Your Target Audience is Important to Your Marketing Strategy
What are Target Market Segments?
Target market segments are groups, or segments, that are organized based on the analysis done to determine your target market. They are parts of your target market that have been grouped together based on similar data points. They can be created:
Demographically- People with similar demographics like gender, age, and lifestyle.
Behaviorally- People with similar behavioral patterns and habits.
Geographically- People within the same general area.
According to Investopedia, businesses tend to create different segments based on three different criteria. These are:
“Homogeneity- Common needs within a segment
Distinction- Being unique from other groups
Reaction- A similar response to the market”
For more information on target market segments, check out this article:
Are Negative Market Segments a Thing?
Yes, there are. Not all segments will be profitable (and you don’t want to spread your budget over a million slightly different versions of products), and sometimes, too many segments can cause your business to run into ethical concerns over privacy and discrimination.
Is a Target Market the Same as a Niche Market?
Nope! Your target market and niche market are two separate things. Your target market is the target group of people you want to provide for and gear your products to. Your niche market is the specific service/product you specialize in.
An example would be a candle company selling candles. Their target audience could be people who want candles, but their niche market could be candles made from vegan ingredients.
Should you Market to the Masses?
The short answer is that it depends. In general, though, we recommend narrowing your marketing down to targeting those who would most benefit from what your business has to offer. If you’re trying to make your products and services palatable to the masses, you miss out on getting people excited and interested in your products. You lose the ability to personalize your interactions with potential and returning customers, and that's a big deal, according to McKinsey & Company. According to them, the “Next in Personalization 2021 Report reveals that companies who excel at demonstrating customer intimacy generate faster rates of revenue growth than their peers. And the closer organizations get to the consumer, the bigger the gains.”
They also state that 71% of consumers expect companies/businesses to provide personalized interactions, and 76% of consumers get frustrated when this doesn’t happen.
How Often Should you Review your Target Audience?
It really depends on the market your business is in, the trends within that industry, how competitive it is, and what your business sells. As a general rule, though, we recommend going over your data and target audience information quarterly, which means at least four times a year.
How to Reach Your Target Audience
You can reach out to your target audience in various ways and get their input. Many businesses use social media these days due to the amazing online algorithms they provide, as well as the custom websites businesses create for themselves for branding. Here are some CCS articles that go into more depth on the various online platforms you can reach your target market on:
Instagram Basics for Small Businesses
TikTok Basics for Small Businesses
Social Media and Small Businesses
Your target market and target audience are both extremely important to figuring out how to make your business stand out in the industry you’re in and determining what your customers really want from your business in order to feel happy, loyal, and drive them to recommend your business to others. If you would like help and want to discuss your business’s target market(s) and how we can help you reach them, feel free to contact Comprehensive Consulting Solutions for Small Businesses to schedule a free consultation!
Check out these other amazing CCS articles:
Navigating the Algorithms
Digital Marketing Vs. Traditional Marketing and How They Can Work for You
Alignable Basics for Small Businesses
Customer Acquisition Costs Five Times More Than Customer Retention
