Target Market


DEFINITION of 'Target Market'

The consumers a company wants to sell its products and services to, and to whom it directs its marketing efforts. Identifying the target market is an essential step in the development of a marketing plan. A target market can be separated from the market as a whole by geography, buying power and demographics, as well as by psychographics.

BREAKING DOWN 'Target Market'

Not all products and services are meant for all types of consumers. In fact, companies may tweak certain aspects of a product, such as the amount of sugar in a soft drink, so that it is more likely to be purchased by consumers with varying tastes. Creating the target market may require the use of limited product roll-outs and focus groups, allowing product managers to get a feel for which aspects of the product are the strongest.

  1. Green Marketing

    Marketing products and services based on environmental factors ...
  2. Marketing Mix

    Usually referring to E. Jerome McCarthy's 4 P classification ...
  3. Word-Of-Mouth Marketing - WOM Marketing

    When a consumer's interest for a company's product or service ...
  4. Viral Marketing

    Internet advertising or marketing that spreads exponentially ...
  5. Brand Awareness

    The likelihood that consumers recognize the existence and availability ...
  6. Marketing

    The activities of a company associated with buying and selling ...
Related Articles
  1. Investing Basics

    Is Google Becoming A Monopoly?

    Learn about whether Google is becoming a monopoly. Monopolies are considered undesirable because they prevent competition and innovation.
  2. Professionals

    Advertising, Crocodiles And Moats

    Memorable advertising is a brick in the fortress that keeps competitors at bay.
  3. Professionals

    How To Target Ideal Customers

    Expand your definition of a lucrative client and uncover a new realm of possibilities.
  4. Entrepreneurship

    10 Breakout Ideas For Small Businesses

    If your business has hit a wall, we've got the answer to break through and increase sales and earnings.
  5. Professionals

    The Lucrative World Of Third-Party Marketing

    Hedge funds don't sell themselves. Marketing experts reel in the big fish.
  6. Fundamental Analysis

    Calculating Valuation

    Valuation is the process of determining what an asset is worth.
  7. Stock Analysis

    How Video Ads Became Twitter's Most Valuable Product

    Learn how Twitter's acquisition and use of MoPub to deliver video advertisement campaigns to various mobile applications has benefited the company.
  8. Professionals

    RIAs: Why Discounting Your Fees Is a Big Mistake

    For RIAs, lowering your set price is a short-term fix. Here are a few other ways to reach out and appeal to a wider array of potential clients.
  9. Economics

    How Do Companies Forecast Oil Prices?

    Read about the different forecasting methods that businesses use to predict future crude oil prices, and why it's so difficult to guess correctly.
  10. Investing Basics

    7 Iconic Brands That No Longer Exist

    Understand the value of branding and what makes good brands great. Learn about seven iconic brands that failed and no longer exist.
  1. How might a company use demographics to assess the size of a potential market?

    Demographics can be used to help a company determine key characteristics of the potential population to which it company ... Read Full Answer >>
  2. What should be included in a restaurant business model?

    The most important elements of a restaurant business model include the restaurant's unique value proposition, menu choices, ... Read Full Answer >>
  3. What do you need to know to create a business model?

    A business model lays out the idea for a business, along with the step-by-step plan for making the business profitable. To ... Read Full Answer >>
  4. What is the difference between product differentiation and price discrimination?

    Product differentiation and price discrimination are two strategies used in marketing and economics. Product differentiation ... Read Full Answer >>
  5. Is a financial advisor allowed to pay a referral fee?

    A financial advisor is allowed to pay a referral fee to a third party for soliciting clients. However, the Securities and ... Read Full Answer >>
  6. Is Colombia an emerging market economy?

    Colombia meets the criteria of an emerging market economy. The South American country has a much lower gross domestic product, ... Read Full Answer >>

You May Also Like

Hot Definitions
  1. Ex Works (EXW)

    An international trade term requiring the seller to make goods ready for pickup at his or her own place of business. All ...
  2. Letter of Intent - LOI

    A document outlining the terms of an agreement before it is finalized. LOIs are usually not legally binding in their entirety. ...
  3. Purchasing Power

    The value of a currency expressed in terms of the amount of goods or services that one unit of money can buy. Purchasing ...
  4. Real Estate Investment Trust - REIT

    A REIT is a type of security that invests in real estate through property or mortgages and often trades on major exchanges ...
  5. Section 1231 Property

    A tax term relating to depreciable business property that has been held for over a year. Section 1231 property includes buildings, ...
  6. Term Deposit

    A deposit held at a financial institution that has a fixed term, and guarantees return of principal.
Trading Center
You are using adblocking software

Want access to all of Investopedia? Add us to your “whitelist”
so you'll never miss a feature!