Skip main navigation

£199.99 £139.99 for one year of Unlimited learning. Offer ends on 28 February 2023 at 23:59 (UTC). T&Cs apply

Find out more

Target Market Essentials

Your target market are the ideal purchasers of your product or service. Watch this video to learn more and how to refine your target market.
So what’s the target market anyway? Essentially it’s just a group of customers with a certain profile that are ideal for your products or service. That’s what’s most important. Now, you’re going to use your target market you’re going to weave it through your entire business strategy. It’s going to impact everything that you do. So a couple
of questions that I want you to ask: First, who is going to be most likely to buy my products or services? What does that Target group look like? who’s going to be most willing to pay the price that I’m going to charge? Who will understand and appreciate what I’m delivering it in my product or services? That’s really what’s important. Target market breaks down into two different groups, a price on a demographics and psychographics, two different types that we use to define our target market. Demographics, pretty easy, age income occupation geography. We’re going to go through them, psychographics are a little bit more touchy-feely, they are about personality, beliefs, values, lifestyle, things such as that.
We’re going to define actually to each one of those categories and that’s going to make up our target market. Supercuts, if you’re not familiar with Supercuts take out here. Hand the name Supercut, their target market is parents of kids aged 4 to 12 with household incomes under $50,000 where low price, is key. Alexa, and if you’re not familiar with Alexa, is a car company. They are targeted at professional men and women aged 35 to 54 who value quality and image, they’re higher income earners and they value quality over price. And how about Rolex? Rolex is targeted at professionals. They’re well educated, college-educated, White collar men between age 45 and 64 years old.
They’re living near or in a major metropolitan area and they have incomes over two hundred thousand dollars. So that gives us a sense a sense of just how the vet at a very high-level how target market is, defined for these varying companies. The big mistake that I see a lot of entrepreneurs make is what I call the everyone trap. The everyone trap is that my entire target market, everybody in the world can use my product or service. That means that means that everybody is in my target market, and I say to that, really? in fact no, that can’t be the case. I can’t talk to the entire world. You can’t talk to everyone. Your message will not resonate.
It won’t make sense. It’s not a very good strategy overall. Let me use an example that is kind of very common that everybody uses a toothbrush, right? But yet, is everybody the target market for toothbrushes? Absolutely not. In fact, there are different types of toothbrushes. There are really cheap toothbrushes that are 99 Cents. There are more sophisticated toothbrush that vibrate in your mouth that might be like $10 and then there’s a super expensive toothbrushes that are 2 and 3 hundred dollars, and each one of those has different targets, right? So it’s very interesting.
Now, add one other layer into this, which is: who actually buys the toothbrush in the family, typically, moms are the ones that are going to buy toothbrushes in families. So therefore she might be more the target market than other folks that we can start to carve out different types of products for different customer groups and within that who’s actually going to buy them. That starts to define who your target market is. So when you try to speak to everyone, you actually end up speaking to no one That message is not going to resonate with anyone out there. So you don’t want to do that. You’re much better off talking to a specific group of people with a specific message.
So let’s take another example of McDonald’s. So one might say everybody goes to McDonald’s because everybody wants inexpensive food. Well, in fact not everybody wants an inexpensive food and not everybody likes McDonald’s, not only because maybe they’re not as healthy as you might might want but maybe the idea that they’re wanting two or three dollar menu just doesn’t resonate with people, because price is not my biggest determinant. In terms of buying food. I might value healthier alternative and more expensive food over just going to McDonald’s. In fact personally, I don’t go to McDonald’s that much if at all because that doesn’t resonates with me, that messaging doesn’t mean anything to me, right?
So that’s what I want you to think about or your products and services as well. It’s not always price or other things that might resonate to everybody out there by defining your target market. It doesn’t necessarily mean that you’re excluding people, that these people will not buy from you. That’s not what we’re doing. What we’re doing is we’re finding a market in such a way that says here’s who I’m speaking to. Here’s who I’m going after. It doesn’t mean that other people won’t come in outside that target market and buy from you. and that’s something that’s really important for you to understand.
You might ease a little bit about your worry about narrowing down your target market to something that’s meaningful. Otherwise, you’re going to want to keep blowing it out. Just like all the other entrepreneurs you want to keep making it bigger and bigger. What we want to do is you want to get down to something that’s reasonable and that I can speak to my target audience, instead of speaking to everyone, I want you to speak to someone. This is what I want. I want you to hit the bullseye right there that’s going to resonate with your target audience. You’ve got a narrow that down and speak to that individual. Nike doesn’t sell to everybody that has feet, that’s ridiculous.
But in fact they have a much more targeted market their Market is about 18 to 55 people that generally are more affluent, have better incomes, is what they’re targeting, right?

Which people are most likely to appreciate and buy your products or services? What is their age range, geography, and favorite hobbies? Your target market is that group of customers, fitting a certain profile, who are the ideal purchasers of your product or service. In this overview of demographics and psychographics, you’ll learn how to clarify and refine the target market for your product or service. This lesson includes a look at target markets of brands such as Supercuts, Rolex, and Lexus.

This article is from the free online

Create a Robust Go to Market Strategy

Created by
FutureLearn - Learning For Life

Our purpose is to transform access to education.

We offer a diverse selection of courses from leading universities and cultural institutions from around the world. These are delivered one step at a time, and are accessible on mobile, tablet and desktop, so you can fit learning around your life.

We believe learning should be an enjoyable, social experience, so our courses offer the opportunity to discuss what you’re learning with others as you go, helping you make fresh discoveries and form new ideas.
You can unlock new opportunities with unlimited access to hundreds of online short courses for a year by subscribing to our Unlimited package. Build your knowledge with top universities and organisations.

Learn more about how FutureLearn is transforming access to education