Target marketing is the practice of aiming goods and services at a specific group of consumers. Rather than take a shotgun approach, for example, selling to 18- to 49-year-olds, companies try to narrow their marketing as much as possible, finding only the consumers who are likely to buy from them.Continue Reading
Companies use this strategy because they see how differentiated the marketplace has become, and how it's no longer productive to market to everybody in general.
Companies must drill down and ask themselves relevant questions to create a profile of their ideal customer. They must ask about the customers' age, gender and salary, and where they live, for example.
It is easiest to determine the target market in niche businesses, although all businesses, big or small, should know the target market's demographics. For example, a custom automotive upholstery shop's target market would be people who have custom cars and project cars, most frequently male, although not exclusively, in a higher-than-average income bracket. Secondary markets, which need to be identified as well as the target market, would include any other type of upholstery user, such as car lots, boat or motorcycle owners or restaurant owners.Learn more about Marketing & Sales