Target market is where the company aims to sell its products and services to the particular segmented area or parameter. A company should be having a well-defined target market is more important than ever.
Target customers are those who are most likely to buy from you. Resist the temptation to be too general in the hopes of getting a larger slice of the market. That’s like firing 10 bullets in random directions instead of aiming just one dead center of the mark–expensive and dangerous.
Try to describe them with as much detail as you can, based on your knowledge of your product or service.No one can afford to target everyone. Small businesses can effectively compete with large companies by targeting a niche market.
Target market can be segmented in the form of demographic basis i.e. age, gender, location, income level, educational background, etc. Companies should mainly identify their target market and accordingly distribute the products and services.
Example:
Companies like Mercedes have their target market identified and the company exactly has well defined segmented target audience as to who the customers who are going to purchase the expensive car. The company very well know that the upper class are the main ones who are most likely to purchase a Mercedes. Therefore, it becomes easy for the company to focus and sell their products and services to the targeted market itself.
Video link: https://www.youtube.com/watch?v=YSSEZw3Kepw
