Identifying the Target Market

Marketers need to identify and research their target market to maximise the impact of their marketing. 

Once the target market is identified, then all aspects of the product or service is catered to the needs, desires, attitudes and beliefs of this group of consumers.

Mass market:

Widely used by most consumers; little differentiation across regions / demographics.

Seller mass-produces and distributes one product to all buyers (standardisation); seeks large range of consumers; desires scale; single marketing mix for all markets (mass marketing). 

Market Segmentation:

The process of dividing the mass market into distinct segments / sections that share similar characteristics.

Marketing can target this segment (target market) to make best use of marketing spend (no waste; no mass marketing; targeted to characteristics).

There are four main way that the mass market can be segmented:

• Demographic: Population characteristics such as age, gender, family size, education, income level, occupation)

• Geographic: Location of residence such as urban (high rise, city), suburban (outskirts of city), rural (country), city size, climate, landforms.

• Lifestyle: Values, attitudes and activities such as opinions, personality, aspirations, culture and subculture.

• Behavioural: Repeated purchase habits such as loyalty to brands, use rate, price sensitivity, tendency to try new items, shopping methods. 

Niche:

A narrow segment of mass market; sharing very specific needs and characteristics. 

Marketing activity is targeted to this niche market to minimise waste and reduce costs.