The markets are considered sets of potential buyers and the human concept is taken into account, in addition to the previous ones mentioned.
Factors to determine a target market
The main factors to take into account when determining a target market are the following:
Geographic regions are taken into account when determining the products or services that are aimed at them and the citizens that reside in them.
For example, products that are destined for more tropical areas such as the Caribbean will be more resistant to heat.
Age is a factor to take into account due to the changes in preferences that consumers have throughout their lives.
You can choose to divide the target market by gender to target the campaigns depending on the article that is advertised or to do it in a way that is attractive to both genders.
For example, a perfume aimed at women, but which causes attention in men as a possible gift of value.
Advantages and disadvantages of defining the target market
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Resources are optimized:
Knowing the target market that a company is targeting allows selecting the most appropriate channels to market products or services. Define the strategy, communication, distribution and promotion for it, saving costs if this step is clearly defined.
Create a more effective service or product
By carrying out a preliminary investigation, the demand will be better known and the offer can be oriented to satisfy the needs of the specific public.
Creation of new products or services:
Knowing the target market, it is possible to define and create products that meet their needs. Sometimes these products are produced after knowing the market a company is targeting.
Knowing the potential demand for the product:
Knowing social, demographic or economic factors, among others, will give a more concrete and clear idea about the potential demand that exists for the product or service created.
However, defining a target market can have its drawbacks. These disadvantages focus, in particular, on the poor definition of the advantages. That is, creating a new product may not be a good idea, or the potential demand for the product may not really be known. In those cases, defining a target market can be a bad idea.