It's important to remember that the focus of marketing is people. If you're concentrating your efforts on your product or profit only, you'll miss the mark. The term "target market" is used because that market-that group of people-is the bull's eye at which you aim all your marketing efforts. All businesses need to study and develop a thorough knowledge of the importance of target markets.

So, don't forget that a market is people: people with common characteristics that set them apart as a group. The more statistics you have about a target market, the more precisely you can develop your strategy. Understanding market segmentation is crucial for working out a well-crafted marketing strategy in today's competitive world. The table below shows some examples of market segments (or groups). 

Type of Market Segment	Shared Group Characteristics
Demographic Segment	Measurable statistics such as age, income, occupation, etc.
Psychographic Segment	Lifestyle preferences such as music lovers, city or urban dwellers, etc.
Use-based Segment	Frequency of usage such as recreational drinking, traveling, etc.
Benefit Segment	Desire to obtain the same product benefits such as luxury, thriftiness, comfort from food, etc.
Geographic Segment	Location such as home address, business address, etc.

Here are examples of target segments that can be created using the above table:

• Women business owners between the ages of 25 and 60 earning more than $25,000 annually form a demographic segment.
• People who drive compact cars due to their fuel efficiency form a benefit segment.

Be careful not to confuse a geographic market segment with a place. The market is the people who live in the Sunbelt area, not the Sunbelt area itself. This is a common mistake made by business owners that causes them to lose a marketing focus on their customers.

Design Marketing Strategies with Your Target Market in Mind
The reason you must identify a target market is so that you can easily and cost-effectively create strategies for designing, pricing, distributing, promoting, positioning, and improving your product, service, or idea.

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

Here's another example: If you know your target market is 24- to 49-year-old men who like R&B music, frequently purchase compact discs, and live in urban neighborhoods, you can create an advertising message to appeal to these buyers. Additionally, you could buy spots on a specific radio station or TV show that is popular among these buyers, rather than buying general media time to "kinda cover all the bases."

If the word "kinda" features anywhere in your making marketing decisions, you're costing your business money. Know who you are aiming for (your target market) and create a strategy for a direct hit.

References:
• Small Business Administration

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