What is meant by "target market"?

The concept of a "target market" refers to a specific group of consumers that a business aims to reach with its products or services. This specific group is identified based on various characteristics, such as demographics, interests, buying behaviors, and needs. By focusing on a target market, businesses can tailor their marketing efforts, product development, and promotions to align with the preferences and requirements of this audience, leading to more effective communication and higher sales potential.

Identifying a target market allows a business to allocate resources efficiently and to create messaging that resonates with the selected consumer group. This targeted approach increases the likelihood of attracting and retaining customers who are most likely to benefit from and be interested in what the business has to offer.

In contrast, the broader overall market encompasses all consumers, making it too vast for a business to effectively serve without a tailored strategy. A demographic study may provide insights into potential customers but does not itself define the specific group targeted for marketing efforts. Similarly, the term related to pricing strategy does not pertain to consumer groups at all and is more focused on how products are positioned in terms of cost rather than who is intended to purchase them.