Target Market

AAA

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.

INVESTOPEDIA EXPLAINS '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.

RELATED TERMS
  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. Marketing

    The activities of a company associated with buying and selling ...
  5. Brand Awareness

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

    Internet advertising or marketing that spreads exponentially ...
Related Articles
  1. Professionals

    Advertising, Crocodiles And Moats

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

    How To Target Ideal Customers

    Expand your definition of a lucrative client and uncover a new realm of possibilities.
  3. Professionals

    The Lucrative World Of Third-Party Marketing

    Hedge funds don't sell themselves. Marketing experts reel in the big fish.
  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. Personal Finance

    How Youtube Ad Revenue Works

    Many people make money off of their YouTube videos through ad revenue, but just exactly how does Youtube Ad Revenue work? Quite simply, it turns out.
  6. Fundamental Analysis

    What is a Null Hypothesis?

    In statistics, a null hypothesis is assumed true until proven otherwise.
  7. Personal Finance

    How Instagram Makes Money

    Like many big names in social media, Instagram started as a fun idea without a clear path to profit.
  8. Stock Analysis

    Is SodaStream Ready For A Come Back?

    It's not easy to be a SodaStream investor. The once-fizzy market has gone flat, shedding roughly three-quarters of its value since peaking two summers ago.
  9. Investing

    Multiple Myeloma: A Growing Market For Treatment

    American and European regulators have given Celgene Corporation the OK to begin marketing its top-selling myeloma drug Revlimid as a first-line therapy.
  10. Personal Finance

    How Pinterest Makes Money

    Unlike other social platforms, Pinterest actually caters to people who want more stuff.

You May Also Like

Hot Definitions
  1. Hurdle Rate

    The minimum rate of return on a project or investment required by a manager or investor. In order to compensate for risk, ...
  2. Market Value

    The price an asset would fetch in the marketplace. Market value is also commonly used to refer to the market capitalization ...
  3. Preference Shares

    Company stock with dividends that are paid to shareholders before common stock dividends are paid out. In the event of a ...
  4. Accrued Interest

    1. A term used to describe an accrual accounting method when interest that is either payable or receivable has been recognized, ...
  5. Absorption Costing

    A managerial accounting cost method of expensing all costs associated with manufacturing a particular product. Absorption ...
  6. Currency Carry Trade

    A strategy in which an investor sells a certain currency with a relatively low interest rate and uses the funds to purchase ...
Trading Center