A target market can be defined as a particular group of customers or potential customers a business aims its products and services towards. Target markets can be broken down into a number of market segments.
Doing so can help you gain an idea of the approaches and messages you can use throughout your marketing efforts, so that you can attract specific audiences accordingly.
Demographic segmentation focuses on quantifiable characteristics of a population that can be broken down into the following examples:
Dividing markets based on gender can help businesses to market gender specific products more successfully for example; beauty and cosmetics are more likely to be aimed at women.
Segmenting consumers by age can help you to gain an idea of customer need due to the fact that consumer needs can change over time.
Occupation and Income Level
By categorising target markets by occupation and income level, it is possible to utilise marketing materials aimed at individuals of a specific hierarchy within e.g. a company.
Once your demographic information has been defined the next step can include looking at consumer psychographics.
Psychographic segmentation builds on demographical data by focusing on the psychology behind consumer purchases.
Drilling into data that focus on buyer habits, values, interests, opinions, attitudes and lifestyle can provide you with valuable insight. This insight can be used to tweak campaigns and implement the necessary actions required to ensure your brand, services and products match your target consumers expectations.
Psychographic data can be accumulated through data systems that collect and monitor customer buying habits and purchases such as customer loyalty schemes. Psychographic data can also be collected via on and offline customer surveys, reviews and focus groups.
Gathering demographic data helps you segment your target markets and psychographic analysis ensures you connect with your target consumer based on their expectations.
Completing these exercises will inevitably enable you to build key messages that appeal to consumer needs; giving you the ability to market your products and services using a clear cut, focused approach.