Target Markets:

Targeting your market refers to the specific way that you promote your product in order for it to maximally attract a key 'target' group of consumers. Your 'entire buyer market' consists of all people who would potentially purchase your product; however, this is an incredibly large and vast group of people. It would not only be difficult, but extremely costly to market to such a group. Business people who attempt to market to all consumers instead of a smaller, more focused, market group are ones who fear that excluding some people from their target market will result in them being unsuccessful. Truly though, it is maintaining a focused outlook that is of primary importance. It is for these reasons that you must narrow your marketing to focus on a 'target market' group of consumers which are the most likely purchasers of your product. These consumers may buy because they can afford it, because they are influenced by others to purchase it, because they are most exposed to your product, or because they need the product or service that you are offering. Target marketing can also help to narrow your spending on advertising, for once you know which consumers you are targeting, you can advertise and promote your product in manners that are specifically appealing to those consumers.

In focusing your marketing it is critical that you define a group which is small enough in size so that your product can have a strong, select, and competitive hold, but is also flexible and large enough to enable growth and prosperity. Don't limit yourself to the obvious target markets: clever businesses such as many fast food restaurants recognize that targeting children with toys, for example, effectively persuades the adults and whole family to purchase the products. Keep a look out for areas that seem to be under-served: it is in targeting these markets that you will best find potential consumers. Be weary of engaging in multiple target markets. This can be very costly, and often results in less effective service than could have been provided for in a single, well monitored and researched market. The valuable information that a professional market researcher can provide for your business is helpful in your market targeting attempts, but is generally a very costly service. Much of this information can, with a little work, be obtained through your own research initiatives - such as the distribution of response cards - as discussed under 'direct marketing'.

An important proverb in the realm of marketing is Vilfredo Pareto's principle which states that 80 percent of your business' profits come from 20 percent of your business' clients. On this premise, it is justifiable to target market that select 20 percent of your clientele, and not extend the marketing to the other less profitable 80 percent. Invest more in under-served and growing markets, and refrain from engaging in well served, unnecessary, or declining markets. When you have thoroughly reflected upon the characteristics of your target market and the many advertising possibilities and promotional devices, you may then choose what devices are best suited to you, your company, your product, and above all, your consumers.