Selecting a target market helps an organization focus its marketing resources on customers who are more likely to buy. This lesson explains what a target market is, how it differs from a target audience, and how buyer personas help marketers understand customers.
A target market is the subset of the total market that a company chooses to focus its marketing efforts and resources on. Market segmentation reveals differences among customer groups; selecting a target market is the decision about which group or groups to serve.
All flashcards
What is a target market?
The customer segment or segments a business selects from the total market to serve with its marketing efforts.
How can a target market differ from a target audience?
A target market may include intended product users, while the target audience is the group expected to make the purchase.
What is a buyer persona?
A semi-fictional representation of an ideal customer that helps marketers understand customers and plan relevant messages.
How do undifferentiated and differentiated marketing differ?
Undifferentiated marketing uses one marketing mix for the whole market; differentiated marketing tailors separate approaches to several segments.
How do concentrated marketing and micromarketing differ?
Concentrated marketing focuses one marketing mix on a selected segment; micromarketing tailors offers to individuals or narrowly defined groups.
Quiz questions
Why can selecting a target market make marketing more efficient?Answer: It concentrates resources on groups more likely to value and purchase the offering.
Which approach uses one marketing mix for the entire market?Answer: Undifferentiated marketing
How can large-volume production support economies of scale in mass marketing?Answer: It can spread costs across more units and reduce the cost per item.
A company develops separate marketing approaches for several customer segments. Which strategy is it using?Answer: Differentiated marketing
What is a key consideration when choosing between broad and tailored marketing approaches?Answer: Whether the benefit of tailoring offers justifies the resources it requires.
Based on Principles of Marketing by Dr. Maria Gomez Albrecht, Dr. Mark Green, Linda Hoffman (OpenStax), licensed CC BY 4.0. Adapted into a summary, flashcards and quizzes.