A target market or target audience is a group of customers that the business has decided to

aim its marketing efforts and ultimately its merchandise.[1] A well-defined target market is the
first element to a marketing strategy. The target market and the marketing mix variables of
product, place(distribution), promotion and price are the two elements of a marketing mix
strategy that determine the success of a product in the marketplace.

Once these distinct customers have been defined, a marketing mix strategy of product,
distribution, promotion and price can be built by the business to satisfy the target market.

Market segmentations
Target markets are groups of people separated by distinguishable and noticeable aspects.
Target markets can be separated into:

• geographic segmentations (their location)

• demographic/socio-economic segmentation (gender,age, income occupation,
education, sexual orientation, household size, and stage in the family life cycle)
• psychographic segmentation (similar attitudes, values, and lifestyles)
• behavioral segmentation (occasions, degree of loyalty)
• product-related segmentation (relationship to a product)

Strategies for Reaching Target Markets

Marketers have outlined four basic strategies to satisfy target markets: undifferentiated
marketing or mass marketing, differentiated marketing, concentrated marketing, and
micromarketing.

[edit] Examples
CVS Caremark’s target market is women since they make up 80 percent of the pharmacy
chain’s customers. CVS has marketed its stores to aid women who are constantly
multitasking. They recently redesigned 1,200 of its 6,200 stores to women, including shorter
wait times for prescriptions, wider and better-lit shopping aisles, and more beauty products.[3]

The Oreo cookie is a popular cookie in the U.S., known for its two discs of chocolate with a
white cream filling. The Double Stuf Oreo cookie is also marketed to U.S. consumers.
However, Kraft has formulated a different version of the Oreo to target consumers in China.
The Chinese version consists of four layers of long, thin biscuits coated in chocolate. Kraft
CEO, Irene Rosenberg, trusts his executives who live and work in China to know what
consumers would prefer in order to maximize their profits. In Germany, Kraft is appealing to
the tastes and preferences of German consumers by creating dark chocolate products. It is
also introducing premium instant coffee in Russia, which is a beverage that is popular to
consumers.[4]

World Wrestling Entertainment’s (WWE) target market is young males. Monday Night
RAW® is the number one entertainment program on primetime cable among male viewers (2
million+) including the male demographics of 18-34, 18-49 and 25-54. It is shown at 9:00
PM ET to reach its target market.[5]

Kohl’s department store has a target market consisting of consumers buying for themselves
and their families.[6]

[edit] The Psychology of Target Marketing

A principal concept in target marketing is that those who are targeted show a strong affinity
or brand loyalty to that particular brand. Research has shown that racial similarity, role
congruence, labeling intensity of ethnic identification, shared knowledge and ethnic salience
all promote positive effects on the target market. Research has generally shown that target
marketing strategies are constructed from consumer inferences of similarities between some
aspects of the advertisement (e.g., source pictured, language used, lifestyle represented) and
characteristics of the consumer (e.g. reality or desire of having the represented style.
Consumers are persuaded by the characteristics in the advertisement and those of the
consumer.

Design Marketing Strategies With Your Target Market In Mind

The reason you need to identify a target market is because it makes
strategies for designing, pricing, distributing, promoting, positioning and
improving your product, service or idea easier, more effective, and more
cost-effective.

For example, if research shows that a sturdy recyclable package with blue
lettering appeals to your target market and if you are focused on that target
market, you would choose that type of packaging. If, however, you are
product- or profit-oriented, rather than people oriented, you might choose to
make the package out of plain styrofoam because it protects the product
(product-oriented) or because it's cheap (profit-oriented).

Or, if you know your target market is 24- to 49-year-old men who like
rhythm & blues, are frequent CD buyers, and live in urban neighborhoods,
you can create an advertising message to appeal to those types of buyers.
Additionally, you could buy spots on a specific radio station or TV show that
appeals to this type of buyer, rather than buying general media time.

In summary, when you're making marketing decisions and you say "kinda,"
it's costing you money. Know whom you are aiming for (your target market)
and create a strategy for a direct hit.