Target Market: what it is and how to choose the right market

One fundamental element for success in your business is primarily related to Target Market or Target Marketing, that is understanding How to Choose the Right Market.

You must have certainly found yourself in a dilemma, asking:

  • Why is my company with excellent potential not breaking through?
  • Why am I not able to increase my users?
  • Why do the marketing strategies applied not prove effective even after investing a considerable budget?

In today’s workplace, identifying the Target through marketing is not only useful but also an indispensable parameter.

It will help you achieve efficient results economically and increase your potential customers through Target Audience for your company.

A generic and undefined approach to these parameters is not enough in marketing. By doing so, you will waste time and money, most likely addressing an audience uninterested in your product or service.

While you continue with this approach, your competitors will likely gather vital information about your customers, risking falling behind in meeting their needs. 

In this mini-guide, I will explain the main techniques to understand who your Target Market is. There are also various tools or online resources available that will give you a clearer insight into Identifying the Reference Market.

Target Market: definition

Target Market or Target Marketing is the technique used by companies to identify the end consumer. The company’s goal in this case is to attract as many people as possible to purchase their product.

target market strategy

Target Market and Target Audience

Firstly, it’s essential for you to understand the difference between Target Market and Target Audience.

Both are important, but your approach will be to understand first how to identify the Target Market and then delve into the Target Audience.

target audience

As we mentioned earlier, the goal of the Target Market is to reach and sell your product to as many users as possible.

Target Audience, on the other hand, is the segmentation of the Target Market, meaning the division of your customers into individual units based on their personal, social, and economic characteristics.

How to identify the Target Market

Before moving on to the most crucial steps for analyzing and identifying the Target Market, you need to ask essential questions, such as the following:

  • What are the strengths of my business, my product, or my service?
  • What are the advantages of my product?
  • How can my business help the customer?
  • What is the purchasing behavior of my target?
  • What is the age and gender of my target? Do they have children? What is their income and education level?
  • What are their common hobbies or interests? These parameters can be associated with their values, habits, or lifestyles.
  • Is your target active on the web? What are the online or offline marketing campaigns that engage them the most?

identify target audience

You cannot assume that any category of person who purchases your product falls within your Target Market. Even categorizing your target into “parents”, “millennials” or “single women” is too vague and imprecise.

Please note: when you identify your Target Market, you are not excluding people who do not match the parameters you have set.

On the contrary, you are strengthening your marketing plan and identifying the group of users most likely to buy or sell your product or service.

Once you have identified the Target Market and developed targeted strategies for your ideal consumer, identifying the Target Audience will become much simpler.

 

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How to identify your target audience

As you may have noticed, understanding the market and identifying a broader range of users in general is incredibly helpful, and then diving into specifics later on.

This method to Identify Your Target Audience is characterized by the following points:

  • Study existing marketing strategies.
  • Identify an existing group or segment of consumers.
  • Analyze the competition and other types of businesses in the market.
  • Know your products or services in detail, as well as how they can influence the user.
  • Consider a highly competitive global market rather than taking the easier route.
  • Analyze all available data and information, especially details about their performance and results.
  • Use everything you’ve gathered over the years to distinguish your real Target Audience from the ideal one.

It’s clear that you could choose to skip these steps for identifying the Target Audience, but without some analysis, there’s a chance of making mistakes and focusing on the wrong or unsuitable audience for your business.

That’s why it’s advantageous to discover the right Market first and then move on to the Target Audience.

Let’s consider a practical example:

overlap targeting

Let’s say you’re targeting a single group. Without analyzing the Reference Market, you might narrow it down using the information you already know or have applied before, like “Men who like football“.

Naturally, you’d have to create and manage a considerable number of tailor-made campaigns for this audience.

It might seem effective, but it really isn’t. Why? Because you should have focused on a broader group of users, for instance, “Men who love sports“, the opposite of just one activity like football.

Even within the “Men who like football” target, those interested in “basketball” or “tennis” could be potential customers for your sports goods.

Essentially, you’ve overlooked them by narrowing your target to just one group. Detailed analysis is crucial, but when choosing your target, it’s always better to start with a larger group of users.

Building your target audience

Who is my Reference Target or my ideal consumer? At this point, you need to understand in detail who your best customer could be and most likely the perfect user.

The more precise and targeted the information, the better your chances of finding your Target Audience.

The main characteristics are divided into 4 major segments:

1. Demographic – In this segment, individual statistical data are grouped, including:

  • Gender (Male/Female)
  • Age
  • Education Level
  • Marital Status
  • Education
  • Race
  • Religion

building your target audience

These demographic details will help you identify the type of person who might be interested in purchasing your products or services.

2. Geographic – In this group, on the other hand, data is segmented by geographic location. For example, living address, although it depends on the type of activity of your company. Among the data, we find:

  • Neighborhood
  • Postal Code
  • National Prefix (e.g., +39)
  • City
  • Province
  • Region
  • Country (If your business has international coverage)

geographic location data

Geographical data allows you to understand, based on the customer’s place of origin, which products might be in demand or have generated more interest in that particular area.

3. Psychographic – Here, however, the information is more about the socio-economic aspects of the individual consumer, personality, social class, lifestyle, and so on. Specifically, lifestyle includes the following information:

  • User Psychology
  • Interests
  • Values
  • Attitude
  • Behavior

psychographic information

The Psychographic Segment is perhaps one of the most important, as it is based on the concept that the choices made by the user regarding the purchase of a product or service are influenced mainly by lifestyle and social class.

4. Technographic – The information concerns the type of device most used by the user, for example:

  • Smartphone
  • Computer
  • Tablet

technographic details

Specific software details your audience. Thanks to this information, you can reach your target audience based on the type of device (smartphone, tablet, desktop) and operating system (Android, IOS) on which a specific search is made.

Consequently, set a more effective strategy based on the data obtained.

Analyzing data

In every business, regardless of its size, analytical data is the primary factor that can influence your decisions and optimize your performance. To do this, you need specific analytical tools that allow you to achieve optimal results.

Today’s digital market is flooded with an infinite amount of tools, and it can be overwhelming and difficult to understand which one is most suitable for your company.

Below, I will list the most important and authoritative tools on the market, which can be a great place to start.

Google Analytics

1. Google Analytics: it is a free service that allows you to analyze user data based on their interactions with your company’s website.

It is a professional analytical tool, so it might not be very intuitive if you are using it for the first time. As you start using it, after a while, you will have a much clearer view and discover its enormous potential.

Start trying it out: Google Analytics

google analytics services

It’s a platform that focuses on both mobile and desktop aspects.

Thanks to Google Analytics, you’ll be able to:

  • Monitor your site’s status, such as generated traffic.
  • Track incoming and outgoing users on your site.
  • Locate the geographical location of the user.
  • Analyze demographic information (age, gender, tastes/preferences).
  • Identify the type of device used by the user when visiting the site.

 

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analysing competitors socials

Quantcast

2. Quantcast: it is also an analytical platform like Google Analytics, but the collected data focuses not only on user demographic information on your site but also on that of competitors.

It is a service widely used, especially if you need to truly “Quantify” your page’s data.

Start trying it out: Quantcastquantcast platform

The information to be measured quantitatively is the following:

  • User behavior on the web
  • Age
  • Race
  • Level of Education

demographics information

Google Trends

3. Google Trends – This free tool by Google analyzes information related to keywords or phrases that have generated more searches on the web and sparked more interest among users.

google trends free tool

In this case, keywords are also identified geographically, both regionally and locally.

Start exploring: Google Trends

regional interest rate

field of analysis Through Google Trends, you can narrow down your analysis by setting specific time metrics in a particular country or region, such as trending searches, daily, weekly, monthly, and so on. In terms of Target Market, this platform can help you plan effective and high-performing marketing campaigns targeted at the previously identified Target Market.

This is made possible through the fundamental steps you learned in this mini-guide.

If you found these tips on techniques to identify your audience useful, visit the Digital Coach website and explore Web Marketing Courses.

if you prefer advanced courses, check out the Certifications in New Digital Professions for a more in-depth learning experience.

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