Definition of Target Market
What Is a Target Market and why Is it Important for Workplace Communication?
It is important to know the definition of target market as every company has "target markets", or a groups of consumers who are specifically targeted as "your" consumers. These people are going to be the ones who are most likely to buy the products or services your company produces. Companies also have internal target markets which are its workforce.
There are several reasons why it is important to have a clear definition target market and especially your specific target market not just so that you can serve your customers better, but so that you can also be more efficient in the workplace itself. This helps you set strategies and goals specific to starving your target market, so that you can then communicate these strategies and goals to associates in the workplace.
Why being "too general" is a bad idea when it comes to defining your target market
For too many companies, it's a temptation to have a definition of target market as "everyone," or as the old, outdated "18 to 49-year-old" group. However, this is too general and it's not going to increase your market power or niche. Why? Because it's so general, and because you're trying to include "everyone," you reach no one. When you're so general, you in effect dilute your message and make it effective for no one.
That's bad for your intended consumers, of course, because if they're confused by the message, they're much less likely to buy your product or service. But it's also bad for employees in the company, because they, too, are going to be confused, with no clear message or directive. So define your target market as much as possible, establish clear goals and objectives based upon that target market, and then communicate them to staff regularly via established methods, like company e-mails, staff meetings, and so on.
How do you do your target market research?
Target market research methods are changing. There are many different research methods. No longer do the "same old, same old" methods work. You have to clearly define your intended customer in order to deal to sell to him or her effectively, of course, but what does that actually mean?
Basically, you have to figure out who your customer is based upon TODAY'S values, not traditional market values as set forth by the demographics of previous decades. (To paraphrase one expert, for example, "Today's 50-year-olds are interested in rock 'n roll, not Geritol.") So based upon TODAY'S values, make sure you answer questions about your intended customer like:
- Age, sex, and geographic location (as applicable) of your intended customer
- Income level
- What they do for a living
- What they like and don't like
Much of this information can be found on the internet or through trade periodicals, through research that somebody else has already done. Then, figure out how your product is going to make your target audience's life better or more enjoyable. This will further help clarify the direction you take and message you give.
"Getting everyone on the same page"
When you really do have a definition of target market and then gear everything you do toward that target market, you clarify things so that your employees, too, can clearly understand the goals you have and the strategies you need to implement in order to achieve those goals. In addition, when you get everyone on the same page so that everyone is clearly going in the same direction, you're more efficient. More than that, though, once everyone clearly understands your target market and the definition of target market, you can effectively add to your resources, because qualified employees can give feedback and suggestions as to how to serve that target market more effectively.