A target audience is the set of people from a market segment whom a company wish to sell a product or service to, target markets are defined by several variables which may include; age, gender, income, socio-economic grouping or interests etc.
There are several different ways in which marketers are able to segment the market to establish a target audience in which they are trying to appeal to, continuous changes within society such as lifestyle, demographics and cultures are providing marketers with new opportunities. Before you can even think about selling a product or service you have to first determine who would buy into it and if there is even a place for it in the market.
Segmentation is the process by which marketers break down the intended product market into manageable groups, to enable them a establish a target audience to aim their product at. These groups consists of; the type of customer, how the customer uses the product or service, the buying situation which would take into account whether it were a first time purchase or a repeat purchase etc. Purchase method, behaviour, Geographic, Demographic, Psychographics and the kind of relationship.
All of these factors a company has to take into consideration before launching a new product, one of the main variables which is widely used amongst advertising is demographics which includes; income, gender, age, family size, family life cycle, jobs, education, religion, race, culture / nationality and generation. If marketers can can take into consideration all the elements in which affect the people in these segments then they will be really successful, they need to know and understand their desired market.
The diagram below shows the psychographics that marketers take into consideration when determining their target audiences.
A market analysis is the research that is undergone to assess the target market, this will include looking at several variables such as the demographics, the competition and the needs for marketing the product or service. Regardless of whether you are starting a new venture or revising an old one, conducting a market analysis is key to knowing and understanding the market and for current and future developments that may occur.
Here is a short video that I have found which discusses market segmentation, targeting and positioning.
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