We see multiple businesses around us today. Some are big, some are small, some are on their way to becoming big. Every business has a target market.
Target Market means a specific category of consumers which the businesses will offer their products or services to. Some businesses have multiple target markets for different products.
Having a target market to offer products or services to is important. It helps to narrow the focus of the business. It also helps to establish an image of the company in the minds of its consumers. For eg. What does Nike do? They make shoes for running, sports
Segmentation of the target markets can be done in different ways. It depends on what product or service you offer as a company and that decides which segments of the market you will be catering to. For instance, the market can be segmented in the following ways
In this type of segmentation, you categorize the market based on age, gender, income, education, ethnicity and so on.
Psychographic segmentation is more related to the behaviors, lifestyle, attitudes or hobbies of the consumers. For instance, if your customers are going to school, college, university or are they working class people. You can also use profession as an element to segment the market, for instance, if your consumers are pension – earners or athletes or people who have just started working.
Geographic segmentation includes which country, state, city or specific parts of the city you want to focus on. For instance, Luxury car brands will most likely set up their showrooms in places where the income is well above average as compared to the other parts of that city.
Behavioral segmentation is classifying the market, according to the behaviors of the consumers. For instance, what benefits will the consumers receive once they buy the product? If the product is a car, elements like performance, looks, interior, features, and a price will be crucial in attracting consumers. The needs of the consumers must be satisfied with these elements and if this happens, then it will attract more consumers. Some other elements include brand loyalty and usage. Companies usually focus their marketing efforts towards consumers with high loyalty and high usage.
It is essential for companies to narrow down their approach for the business. Understanding the behaviors of their consumers is essential. In the olden days, getting information was harder, but nowadays with the rapid advancement of technology, it has become comparatively easier.
Social media has a huge influence on the world today. From individuals to companies, almost everyone is on one or the other form of social media today. Social media websites like Facebook, Instagram and Twitter have a huge number of users.
The world of social media is extremely dynamic. The behaviors of consumers keep changing online. To target your consumers, you need data. You need to know who your consumers are and what they like and that is when you can target them with your marketing efforts. On in the city and online.
For instance, Facebook and Instagram can be used as platforms for marketing and they have tools which let you track the performance of your activities online.