How to Determine the Target Market and Completely Understand it

Knowing how to determine the target market is important for businessmen to be able to develop an effective marketing plan.

Because not all products are suitable for all market segments.

Now, after knowing the business’s target market, you can design the best marketing strategy to attract the attention of potential consumers who are ideal for the business.

No need to worry; in this article, we will thoroughly examine what a target market is and how to determine it.

Worry yourself no more, because in this article we will thoroughly examine what target market is, and how to [you can] determine it.

Let’s go:

What is Target Market

The target market is a group of people who have the potential or who already have a tendency to buy a product or use the services offered by a business.

In understanding what a target market is, you must focus on segments of the population that have certain needs, preferences, and characteristics that make them the right potential consumers.

Then, only then, can you determine whether your product fits the characteristics of that market segment.

By knowing who their true target consumers are, businesses can direct their product marketing resources and efforts efficiently, rather than trying to reach everyone without a clear direction.

As an illustration, an example of a target market is a McDonald’s outlet that opened in a toll road rest area.

Due to its location, McDonald’s targets middle- to upper-income people on the go.

So, the target market’s need is to look for fast and filling food.

To attract the attention of its target consumers, McDonald’s put up a cheap and cheerful menu banner.

Beside that, they also provide drive-through services to meet the needs of their consumers.

Types of Target Markets

So, after knowing what a target market is, now is the time for you to know the types so you can choose the right target.

In general, the types of target markets are grouped into three, namely:

  • Mass Market: Type of target market, which means everyone. This means that businessmen do not need to apply special segmentation to their consumers. Because the products sold are general and intended for everyone. Examples are products for daily use such as toothbrushes, soap, and others.
  • Broad market or differentiated market: A more specific type of target market. For example, soap products for men and women or shampoo for adults and children.
  • Niche Market: A narrower type of target market because it is related to special consumer characteristics. For example, sales of toothpaste products for sensitive teeth.

How to Determine the Target Market Correctly

Considering the importance of the target market for your business, of course, knowing how to determine the right target market is the right choice.

So, what steps should you take?

  1. Start with market research
  2. Understand product advantages
  3. Carry out market segmentation
  4. Create buyer personas.

Let’s study them one by one.

1. Start with market research

The first step in determining your target market is finding out who wants to buy your product by conducting market research.

In this process, apart from identifying customer data, you also need to find out about existing competitors.

By understanding competitors and looking at market trends, you can collect data and information that is useful for determining your target market and developing effective marketing strategies.

From this stage of determining your target market, you can also gain in-depth insight into consumer preferences and needs, as well as identify promising business opportunities.

2. Understand product advantages

The next step in determining your target market is to understand the advantages and benefits of the product you are selling.

This can help you determine the types of people who are interested in and need your product.

3. Carry out market segmentation

Market segmentation is the process of dividing a target market into small groups or segments to identify potential market growth.

Through market segments, businesses can identify the key characteristics that define their target market and determine marketing strategies according to their unique needs, preferences, and personalities.

To help you practice how to determine your target market, here is a description of the four most common target market segmentations:

  • Demographic: The main characteristic that defines a target market is demographics. Because each person can be identified as a member of a certain age group, income level, gender, profession, and level of education.
  • Geographical: Grouping target markets based on customer location.
  • Psychographics: A type of target market segmentation that focuses on customer traits or personalities.
  • Behavior: Behavioral segmentation tends to focus on exploring customer habits when purchasing products. This type of target market segmentation consists of behavioral patterns such as customer loyalty, consumption, lifestyle, and others.

To carry out this process, you can distribute surveys, ask for customer reviews, or use analytics tools such as Google Analytics.

4. Create a buyer persona

After determining the appropriate target market, develop a buyer persona for each market segment.

A buyer persona is a customer representation consisting of demographics, goals, challenges, and purchasing behavior.

So, what is the difference between the target market and the buyer persona?

The most striking difference between the two is that the buyer persona is more detailed and specific.

It’s like, when you look at a circle of friends, they really have the same age and interests.

But when you focus on each individual, they have different backgrounds, lifestyles, and characters.

These details are what is called a buyer persona.

To build a buyer persona, you can start by determining gender, age, lifestyle, and others.

With specific data, your target market will be easier to identify.

Goals to Determine the Target Market

The main goal of identifying a target market is to have a clear understanding of potential customers who are willing to buy a product or service.

This is done so that marketing efforts can be directed appropriately.

However, the aim of determining the target market does not stop there.

Some other purposes for identifying target markets are as follows:

1. Increase sales

Focusing on the target market allows you to create products faster and market them before your competitors.

As a result, your product sales will increase.

Beside that, it will be easier for you to develop products.

All the data you have from your target consumers will help you determine which products your customers like.

Not only that, your ability to fulfill customer needs well will encourage customer loyalty.

Remember, 65% of a company’s profits come from loyal customers.

If this is applied to every product, it will certainly provide better results.

2. Anticipate competition well

Every business model will experience business competition, except for very specific models.

If your business has competitors, don’t worry too much.

Your ability to anticipate competition will give you an advantage.

The key is to determine your target market and see what competitors are offering in that market.

Then, create advantages for your product that competitors cannot offer.

In essence, knowing your target market can help you “stand out” from your competitors.

That’s what companies like Nike do with their various products.

3. Makes it easier to prepare promotional content

Successful marketing is influenced by the advertising content used.

The more appropriate it is for the target market, the more attention it will attract.

In this way, the potential for product sales can be increased to the maximum.

Your target market will determine whether promotions will be carried out through print media such as newspapers or magazines.

Or just digital marketing, such as video marketing?

This requires considerations based on data, namely your target audience.

4. Building communication with customers

By determining your target market, it will be easier for you to communicate with your customers.

The goal is to understand customer needs.

Your communication can be done through a survey or other methods.

Because you have determined your target market, you know who you should involve in this activity.

The information obtained will be very precise.

This is important for determining the new product you will create.

Of course, selling products that users need will be easier, right?

Come on, get to know and determine your business target market!


From the explanation above, it can be concluded that the target market is a group of people who have certain needs, preferences, and characteristics that make them ideal potential customers for a business.

How to determine the target market needs to be done so that a product can be distributed well while determining the optimal marketing strategy.

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