One of the main principles of marketing is targeting and that’s why being selective as a brand is so important. Identifying a target market helps your brand develop effective marketing communication strategies by focusing your efforts on a group of individuals.
A target market is a group of individuals sharing similar needs or characteristics that your brand hopes to connect with. These individuals are usually the end users and are the most likely to purchase your product since it is tailored to meet their needs.
By selecting a target market your brand is able to create messages that appeal specifically to your target. For example, a removable-flooring company is likely to target adults to purchase their product as children would most likely not be interested in spending their allowance on home improvement. Now within the adult audience, this fictitious removable-flooring company may target renters due to the removable feature which makes the product less durable and home-owners would be turned off by that. By identifying the target audience as adult renters, our fictitious company can focus on highlighting the ease of installation and the removable features to appeal to this audience.
Once you’ve identified the target market, you can then define the target audience (the intended recipient of the advertising message). A large percentage of the time, the target market and target audience are the same. However, in the case of baby products, for example, this will differ. The target market of diapers, for example, is well babies but babies will not be making the purchase. Therefore, the target audience, in this case, will be the parents purchasing the diapers. In this case, the brand must meet the needs of the target market (the baby) but communicate to the target audience (the parent).
Once you know who you are targeting, you now have to decide what the best way is to reach them. It is much easier to decide what kind of media and how much of it to purchase based on a specific segment of the population. Through social media, for example, a brand can purchase ads that are shown specifically to the target audience defined to a high level of demographic detail. A brand can target specific zip codes, age ranges, lifestyles, etc. By speaking directly to your audience, your brand is more likely to generate a sale without squandering resources on a segment of the population unlikely to complete a purchase. That is why being selective as a brand is so important.
Businesses of any size can become more efficient by identifying an under-served market to target. By focusing efforts on a smaller segment of the population with a limited competitor-set, a smaller brand can gain higher profit lines. Targeting this under-served market will be less expensive than since the demand for this market is low. Few players will also be present allowing your brand to gain a higher share of the market with less effort and as a result, your brand will achieve a higher ROI.