Target MarketSusan Schwartz of You Who Branding implies that entrepreneurs do not understand the inherent heterogeneous nature that exists in portions that make up the whole market.
These entrepreneurs fail to segment their markets into portions of the overall market that have similar needs and who could be persuaded to purchase specific products, referred to as the target market by Shahbandarzadeh and Haghighar (42). As such, instead of producing goods variedly depending on the needs of the market segment, they produce goods in mass to try and satisfy the whole market wholesomely. But since different segments in the market have varied needs, everyone would not be the target market hence, not all would have their needs met by the same product. Lamb, Hair and McDaniel (43) give the example of Diet Pepsi whose target market includes those concerned about sugars and not all soft drink consumers.
To identify the target market, one needs to appraise the customers in four ways as identified by Lamb, Hair and McDaniel (45). Geographics identifies the market location, the density, size of the area and the climate zone. Demographic considerations include the age, gender, occupation, education and family size of the customers. It would also be critical to understand the psychographics which include the lifestyle, usage rate, benefits sought, repetition of need, characteristics and personality of the customers. This differs from the final consideration of behaviors which seek to determine the level of information, attitude, needs to be fulfilled and response to products. This categorization of customers would be used by business entities to segment their markets and match their products to the needs of the target markets.
Lamb, Charles W., Joseph F. Hair, Jr. and Carl D. McDaniel. Mason, OH: Marketing. 10th ed. Cengage Learning, 2009.
Shahbandarzadeh, Hamad and Fatemeh Haghighar. “Evaluation of the Strategies of Target Market Selection on the Basis of IFE and EFE Matrixes using Linmap Technique (A Case Study of Bushehr Province).” Iranian Journal of Management Studies 3.3 (2010): 41 – 58.