What Is a Target Market
The target market is that market which targets its attention to a particular genre of individuals. The focus of companies in generating target market is to identify those customers who are likely to buy the product and services. The companies have to create this market due to the cutthroat competition.
In a business plan, it overall stimulates sales and marketing planning by identifying the customers who have the potential of being a specific and regular customer. The aim of a company is to gain maximum profit through a precise business plan and by targeting a large mass of customers; however specification of the potential customers is necessary to gain the market.
When an entrepreneur wants to erect a business and he goes to the lender and investors, then the lenders usually ask a very simple question that who is the potential customers of the product or services provided by the entrepreneur or businessperson. If the entrepreneur is unable to answer this simple question, then it is quite probability that he will not succeed in his business. Most of the business owners often focus too much on their products and services and do not pay attention to the wants and needs of the customers. Customer satisfaction should be the motive of any successful business enterprise.
The starting point of a business endeavour is to decide the genre of customers who want to buy a particular service and products. This is your target market, defined as the group of the population sharing a common set of traits, which distinguish them from everyone else. For example, a men’s clothing store have a customer profile like this; all men between the ages of 18 to 40, 100% males, living within the area of around 10 miles from the store and who earn 30,000 dollars a year. A company working from a long time or a new one have the above characteristics of set of potential customers. If the company is newly established then it takes time to identify the customers, but as the time passes the company defines their customers by the studying the working history and customer files. It is necessary to target and specify the customers to understand their needs and wants.
If a company meet up to the expectations of their customers, then it is sure to be successful in business. For example, if a customer wants to buy a formal shoe with a sporty look, then he chooses a company, which manufactures that type of shoe. He never buys a shoe, which does not have the features and looks he wanted in it even though it is a brand. When you understand who your customers are, then you can easily reach up with your services, products, your marketing strategies are clear due to the understanding of your customers, and you can fulfil their wants and needs more efficiently.